DYL - Deep Yellow

[Sean K]

Hmmm well wish my PDN shares where doing as good as DYL... Do you think it's to late to jump on board and get a part of the action or it's possible there could be a turn around once things settle... (not asking advice just oppions ) or asking the Mob =

Momentum could keep it going, but have an exit strategy. Seems to be lots of interest in it, even if some of it is traders. If it's mostly traders, it could turn quickly. Market cap getting pretty big for what it's got in the ground.

 

[nizar]

THis is a blue sky stock.
Entry yesterday b4 the close it the way to play it. I wouldve but iv just got too many stocks at the moment and not enough cash, and knowing me, the one i wouldve needed to chop to get this probably will start running like a champion the moment i get out!

From my experience, it would be good if it gaps up 2day but not more than, say, 2-3c, to open at 66-67ish, then it could run all day, and another white candle.

Then blow off 2mrw.

But if it gaps up too high, then its game over, and i wouldnt be touching it.

In my opinion.

 

[Halba]

Resources:

18,000t in Namibia at a low grade 200ppm (non JORC, historical)

QLD - No resources defined

Market cap $666m full diluted
996,893,233 Shares and 45,500,000 Options (8.5 c to 60c)

This was expensive under my metrics at anything above 45 cents(nearly 500m dollar mkt cap), but looked okay at under 40 where i hesitated to buy in.

 

[nizar]

Resources:

18,000t in Namibia at a low grade 200ppm (non JORC, historical)

QLD - No resources defined

Market cap $700m full diluted

This was expensive under my metrics at anything above 45 cents($500m dollar mkt cap), but looked okay at under 40 where i hesitated to buy in.

Halba.
If you had bought at, say, 36c, would you have sold at 45c because it had reached your "valuation".
Just trying to get an insight into your trading methods thats all.

 

[Halba]

Nup probably wouldn't niz. I got WMT and its trading well over any accepted mkt cap for what it has yet I continue to hold. Just ride the ramp thats all. Stocks can stay overvalued for their entire life e.g. PDN.

 

[doyoureallycare]

IF PDN has bought more yesterday, then we will see an announcement it today, but who knows if it'll be after the close??

Also we all should know that DYL's Quarterly is due very soon. Last year it was the 27th.

I personally believe that DYL's share price is still dirt cheap. If PDN think it is then DYL must have the yellowcake in Namibia!!!

Great months to come for all holders.

Good luck to all.

 

[Sean K]

I personally believe that DYL's share price is still dirt cheap.

Why do you think it's cheap DYRC? kennas

 

[Halba]

IF PDN has bought more yesterday, then we will see an announcement it today, but who knows if it'll be after the close??

Also we all should know that DYL's Quarterly is due very soon. Last year it was the 27th.

I personally believe that DYL's share price is still dirt cheap. If PDN think it is then DYL must have the yellowcake in Namibia!!!

Great months to come for all holders.

Good luck to all.

Dirt is just dirt. It has to be defined through large amounts of drill work which is time consuming. You can't possibly speculate further considering the limited information we have. Are you referring to the share price in cents as being dirt cheap? You do know that is has 1050m shares on issue? And DYL doesn't have any yellowcake, yellowcake is the finished product after processing of uranium ore.

 

[doyoureallycare]

ok then, just wait and see!

 

[Sean K]

ok then, just wait and see!

No, seriously DYRC, why do you think it's cheap? You need to justify your comments at ASF. Anything will do, then we can discuss it. Cheers, kennas

 

[doyoureallycare]

I honestly believe DYL is cheap because of the way it has set its self up next to PDN in Namibia and also the amount of potential their project has.

It is very similar formation to the langer henrich deposit and with PDN buying up in DYL its enough for me!

 

[Sean K]

I honestly believe DYL is cheap because of the way it has set its self up next to PDN in Namibia and also the amount of potential their project has.

It is very similar formation to the langer henrich deposit and with PDN buying up in DYL its enough for me!

Yes, Namibian EPLs are close to LH and are a similar type of deposit. However, at the moment, it seems the total tonnage they have there is spread over the EPLs in 5 different deposits and the grades aren't as good by the look. I'm not sure how open these deposits are either:

From DYL:

The resources quoted in the table and total metreage drilled are based on data and reports obtained and prepared by the previous operators, as provided to the South African Nuclear Energy Corporation and the Namibian Ministry of Mines and Energy. DYL will complete the work necessary to independently verify the classification of the mineral resource estimates and is not treating the mineral resource estimates as JORC defined resources verified by a qualified person. The tenements will require considerable further exploration which DYL's management and consultants intend to carry out in due course. In the meantime, the information provided should be treated with the appropriate caution.

Is this what you are judging DYLs market cap on?

Certainly, exploration potential on prospective ground in a good region. Being so close to PDN there, perhaps they will take them over at some point. Is this where you see the value, and why they are 'cheap'?

Table of deposits:

 

[doyoureallycare]

I wouldn't be taking any notice of those ancient results. Just wait for the new ones!

 

[Sean K]

I wouldn't be taking any notice of those ancient results. Just wait for the new ones!

So, the results from the new drilling, that started on 16 April, will make it 'cheap'.

Maybe they will DYRC. Good luck.

 

[doyoureallycare]

Paladin eyeing another buy before year's end

Wednesday, 18 April 2007
Paul Garvey
PALADIN Resources managing director John Borshoff says the company's merger and acquisition ambitions have not yet been satisfied, with the uranium miner looking to carry out at least one more deal before the year is out.

Fresh from winning the approval of the Summit Resources board for Paladin's billion-dollar bid for the Queensland-focused uranium play, Borshoff told MiningNews.net the company still had "three or four M&A targets lined up".

"Later this year should see something else, with a bit of luck," he said.

Borshoff said the company was aiming to build an asset base across Africa, Australia, Asia and North America. To date, Paladin holds the producing Langer Heinrich mine in Namibia, the advanced Kyalakera project in Malawi, and several exploration assets in Australia.

A successful takeover of Summit will also deliver Paladin full control of the Valhalla uranium deposit in Queensland, part of Summit's broader Mt Isa project.

He said the company was treading carefully with its assessments of potential targets, given the current heat in uranium equities.

"We've got to make sure we're not going along with gay abandon, we have to make sure the opportunity is there. As you can imagine, we're getting offers all over the place," he said.

Borshoff's comments came as Paladin topped up its stake in Namibia-focused explorer Deep Yellow. On Monday, Paladin forked out $5.5 million to increase its holding in Deep Yellow from 10.6% to 11.8% (see separate story).

Borshoff said the Deep Yellow purchase was consistent with its policy of maintaining a strategic position in the junior.

He said he was attracted to Deep Yellow's suite of exploration assets in areas relatively under-explored for uranium, including 50,000 square kilometers of ground in the Tanami-Arunta desert of the Northern Territory.

"Lots of uranium companies at the moment are looking at the easy low-hanging fruit, which is not looking so good these days, but the future lies with companies looking in new areas," he said.

Borshoff added that the Deep Yellow investment would have gone ahead irrespective of the success of Paladin's bid for Summit.

Finally, Borshoff said the company would sit down with French group Areva – which last week brokered a template for a $250 million investment in Summit – to work out a new structure for that relationship.

Areva had been poised to take a significant equity stake in Summit, but with that agreement subject to approval by Summit shareholders, Borshoff said the two parties would need to revisit the structure of the deal.

He said the new Areva transaction would almost certainly not involve the French nuclear giant taking up equity in Paladin, with Borshoff indicating a joint venture would be the most likely solution.

 

[doyoureallycare]

With Summit conquered, Paladin ups Deep Yellow holding

Tuesday, 17 April 2007
Paul Garvey

URANIUM miner Paladin Resources has toasted the success of its bid for Queensland uranium play Summit Resources by forking out more than $5.5 million to increase its stake in fellow Namibia-focused company Deep Yellow.

Paladin spent $5.56 million or an average 48.5c per share to top up its Deep Yellow holding by 11.46 million shares.

With a previous stake of 10.6%, Paladin ranked as Deep Yellow's largest shareholder, and now controls 11.8% of the explorer's issued capital.

News of Paladin's top-up explained the heavy trading in Deep Yellow shares yesterday.

Some 23.6 million Deep Yellow shares changed hands as the company's share price moved from 50.5c at opening to 58c at the close.

Deep Yellow, which has a reputation as a favourite stock among day traders, has typically averaged turnover of between 2 million and 8 million shares per day.

The company was again the subject of heavy trading today, with 26.7 million shares changing hands as the company's share price lost 3.5c to 54.5c.

Deep Yellow's key asset is its Reptile project to the south and southwest of Paladin's flagship Langer Heinrich mine.

Exploration work at Reptile by previous explorers has defined non-JORC compliant resources containing 18,000 tonnes of uranium oxide, and much of Deep Yellow's work has focused on verifying that historical work.

Last Friday, Deep Yellow began a reverse circulation drilling program at Reptile, with first results from that work expected in as little as five weeks.

Deep Yellow director Martin Kavanagh told MiningNews.net he attributed today's heavy share volumes to profit-taking after yesterday's gain.

"Yesterday's heavy trading came on the back of the Summit-Paladin deal, and I suppose some people may have thought we might be on Paladin's radar, that we might be Paladin's next acquisition," Kavanagh said.

He added that any potential bid for Deep Yellow would need to overcome the fact the company's top 10 shareholders held around 50% of the company's stock, with executive chairman Leon Pretorius alone holding about 60 million shares.

Kavanagh said Deep Yellow had a good relationship with management at Paladin, with Deep Yellow having picked up one of its first uranium projects from Paladin.

Paladin sold Deep Yellow the Napperby uranium project in the Northern Territory, which has since been sold to Toro Energy.

Yesterday, Summit surprised many when it agreed to the terms of Paladin's revised takeover offer of one Paladin share for every 1.67 Summit shares held.

Paladin's shares had lost 57c to $9.83 by the close of trading today.

 

[Sean K]

So this is why it's cheap, DYRC?

If so, how cheap?

 

[Serpie]

Thanks for maintaining the quality of the thread Kennas.
I was having flashes of HC, and didn't like it.

Saying that DYL is "cheap" or "expensive" is redundant. It's worth whatever someone's willing to pay for it.

The frames of reference for valuing U companies are still being laid down, and even direct comparison's between U explorers are proving difficult.

Much of DYL's current SP comes from their personnel and affiliations, which, while less tangible than actual yellowcake in the ground, is still extremely valuable.

Take Dr Leon out of DYL, and see what happens to the SP.

Thankfully for holders we've got an excellent mix of all the required ingredients.

 

[doyoureallycare]

Good Morning all,

Hopefully today we should be seeing DYL's quarterley come through.
If not it's definately Monday.

Should be a not too bad one? What you's think?

 

[Sean K]

Good Morning all,

Hopefully today we should be seeing DYL's quarterley come through.
If not it's definately Monday.

Should be a not too bad one? What you's think?

Why will it be a not too bad one DYRC? You need to add some more detail into your posts for them to be of any value. Thanks, kennas