2 replies to “Deep Yellow Ltd. — An Assumptive Analysis of Book Value at $65/lb U308”

    1. It does (Edited). One can assume capital costs of between US $300-$500 Million. Again, a lot of assumptions must be made with Deep Yellow, as it is a young exploration-stage company. A lot of rivers must be crossed before they graduate to development-stage. So the numbers are pure speculation. In the meantime, monitor progress at Tumas. Keep an eye on exploration costs per lb. Be mindful of the frequency with which they are tapping the market for capital. If they make an acquisition, ask yourself if it is genuinely accretive. Did the acquisition do irreparable harm to the balance sheet? Or was it a well-timed, synergistic acquisition — the right acquisition at the right price (the window to buy cheap lbs. in the ground is closing). When you run your numbers, be hard on the company. And finally, know that Book Value and share price are very different things. Deep Yellow could trade at a fraction of Book or a multiple of Book, depending upon market sentiment. No one knows.

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