DYL - Deep Yellow

[j4mesa]

Just being a neutral person.

what's Kennas point is, which is in accordance with our administrator policy of posting, ie support your point with a reasons else it wrongly be considered as ramping. (Not saying that you are ramping though....)

 

[borat]

Any thoughts as to why DYL has had drops in the SP over the last few sessions? Dissapointing considering today was great day on the ASX..

It's been declining on average volume... Looking at the MACD and RSI it looked exhausted, it also passed the top Bollinger band during Mondays session at the open. Any comments from the fundamental & technical traders?

 

[Mousie]

Any thoughts as to why DYL has had drops in the SP over the last few sessions? Dissapointing considering today was great day on the ASX..

It's been declining on average volume... Looking at the MACD and RSI it looked exhausted, it also passed the top Bollinger band during Mondays session at the open. Any comments from the fundamental & technical traders?

Was getting the sharemarket jitters in the traditional May and (possible) Oct crashes, and also the fact that it's taken this long to get a JORC resource estimate, and looking way overvalued, thus sold my 6-figure holding in DYL @67.5c. Not bad for almost 3 years' work, but am not to be able to sell for 71c.

Side question to the techies: Are any of you able to infer from the charts before yesterday what the high DYL set yesterday would be? Would like to know more about the technical side to enable buying and selling more closely to the possible all-time highs and lows. Anyone?

 

[doyoureallycare]

If you had a closer look at the past couple of days, nearly all uranium stocks were sold across the board.

Today they have rebounded and nearly all uranium stocks are up.

You'd find that it was just a couple of little profit taking sessions.

I wouldn't think its too much to worrie about as analysts are predicting a rise in Uranium price t0 US$140/lb in the near future.

If this happens, I would expect another rallie in uranium stocks.

I've spoken to Deep Yellow and they say that their Namibia drill results should be released within 1-2 weeks.

 

[Mousie]

If you had a closer look at the past couple of days, nearly all uranium stocks were sold across the board.

Today they have rebounded and nearly all uranium stocks are up.

You'd find that it was just a couple of little profit taking sessions.

I wouldn't think its too much to worrie about as analysts are predicting a rise in Uranium price t0 US$140/lb in the near future.

If this happens, I would expect another rallie in uranium stocks.

I've spoken to Deep Yellow and they say that their Namibia drill results should be released within 1-2 weeks.

WARNING: It's quite a long read ahead...

First of all let me just say all the best to existing holders, and that this had been an amazing journey (not that DYL was the only multiple-bagger I've had). But there're a few reasons why I finally sold out after waiting for the price increase:

1) Mkt cap of ~$700m without a JORC resource is hard to justify and has been explained by other ASF members; please go back in this thread to read them if you haven't done so;

2) Point 1 had been caused by a great dilution of existing shareholders' capital, something which I am strongly against. As long as the existing management is at DYL, I don't see this trend of wantonly issuing shares and options to uranium landholders to acquire projects (at increasing prices) stopping anytime soon. As long as the board gets rich with their options, minority shareholders' pie can get ever smaller for all they care;

3) The JV with TOE is the one that did it for me. Farming Napperby out smacks of a lack of ambition that is hard to explain given the caliber of the board. After getting the only JORC result they managed to produce all these years, why not produce the stuff ASAP to take advantage of uranium prices while they're still high?

Instead they seem content to acquire more and more land, while squandering production opportunities by doing it the hard, but ultimately more rewarding way (ie recruit more talented people onto the team according to DYL's needs). They want to stay an exploration company because they're comfortable with it, and that's what they know best with the people they have. It made me really wonder what Dr Pretorius have really been doing with PDN while he was there if he can't even bring in the expertise he need, let alone handle production himself. This brings me to my last point, which is that:

4) DYL's board doesn't possess enough of an urgency to get things done, and naturally so if they're the only ones getting rich at the little guys' expense.

They can claim they increased the mkt cap of the company from sub-$20m 3 years ago to ~$700m now for all I care, but as long as it doesn't say so in my shareholdings, I'm gone. They can care less about that being reflected in their shareholdings because they bought in BIG, and the current 7-8 baggers they're getting is good enough for them. So would it be for me if I bought in millions of dollars when I started out. But when I started circa 3 years back I can only buy about $9k worth of DYL.

Volatility in the markets, the fact that the average mainland Chinese 'cabbies' are borrowing to buy shares on the SSX, and the seemingly spooky recurrence of an economic recession in every 7th year of almost every decade just spurred me to take profits on an investment which has done very well for me, but one which I'm very disillusioned with as of now.

 

[3 veiws of a secret]

WARNING: It's quite a long read ahead...

First of all let me just say all the best to existing holders, and that this had been an amazing journey (not that DYL was the only multiple-bagger I've had). But there're a few reasons why I finally sold out after waiting for the price increase:

1) Mkt cap of ~$700m without a JORC resource is hard to justify and has been explained by other ASF members; please go back in this thread to read them if you haven't done so;

2) Point 1 had been caused by a great dilution of existing shareholders' capital, something which I am strongly against. As long as the existing management is at DYL, I don't see this trend of wantonly issuing shares and options to uranium landholders to acquire projects (at increasing prices) stopping anytime soon. As long as the board gets rich with their options, minority shareholders' pie can get ever smaller for all they care;

3) The JV with TOE is the one that did it for me. Farming Napperby out smacks of a lack of ambition that is hard to explain given the caliber of the board. After getting the only JORC result they managed to produce all these years, why not produce the stuff ASAP to take advantage of uranium prices while they're still high?

Instead they seem content to acquire more and more land, while squandering production opportunities by doing it the hard, but ultimately more rewarding way (ie recruit more talented people onto the team according to DYL's needs). They want to stay an exploration company because they're comfortable with it, and that's what they know best with the people they have. It made me really wonder what Dr Pretorius have really been doing with PDN while he was there if he can't even bring in the expertise he need, let alone handle production himself. This brings me to my last point, which is that:

4) DYL's board doesn't possess enough of an urgency to get things done, and naturally so if they're the only ones getting rich at the little guys' expense.

They can claim they increased the mkt cap of the company from sub-$20m 3 years ago to ~$700m now for all I care, but as long as it doesn't say so in my shareholdings, I'm gone. They can care less about that being reflected in their shareholdings because they bought in BIG, and the current 7-8 baggers they're getting is good enough for them. So would it be for me if I bought in millions of dollars when I started out. But when I started circa 3 years back I can only buy about $9k worth of DYL.

Volatility in the markets, the fact that the average mainland Chinese 'cabbies' are borrowing to buy shares on the SSX, and the seemingly spooky recurrence of an economic recession in every 7th year of almost every decade just spurred me to take profits on an investment which has done very well for me, but one which I'm very disillusioned with as of now.

And to think it's yellowcake coloured like browncake......Very commendable comments and posted arguements. Matrix down the road forgot its postcode has got that synergy theory of X-strata all over it.

 

[doyoureallycare]

That doesn't do it for me.

The SP has gone from mid 30's to a high of 71.5c in the time frame of just over a month and a half.

Paladin has bought over $9million worth of DYL shares in that period.

The way I see it is that Paladin wouldn't buy shares in DYL just for the sake of it! So I would think there's a reason behind it?

The reason for it? I don't know?? nobody knows? But I can't see Paladin just throwing away over $9million.

I wonder if the Dr has leaked some info to Paladin?

 

[Mousie]

That doesn't do it for me.

The SP has gone from mid 30's to a high of 71.5c in the time frame of just over a month and a half.

Paladin has bought over $9million worth of DYL shares in that period.

The way I see it is that Paladin wouldn't buy shares in DYL just for the sake of it! So I would think there's a reason behind it?

The reason for it? I don't know?? nobody knows? But I can't see Paladin just throwing away over $9million.

I wonder if the Dr has leaked some info to Paladin?

Whether the Dr has leaked info we won't know, I agree. But what I can say is if the info is so valuable for PDN to throw $9.5mil DYL's way, they'd have thrown much more.

$9.5mil/$5,490mil = 0.1% of PDN's value = drop in an ocean

Heck, I pay approx 0.1% of brokerage fees when I make a trade!

Don't forget that PDN itself is trading on a huge paper profit, so it is logical for it to use the cash while it still can.

SP doubles due to a large correction on Feb 28 when SP dropped in 1.5-2 weeks from 48c to a low of 33.5c. The correction helped make the subsequent rise more impressive than it would otherwise have been.

 

[doyoureallycare]

Still doesn't make sense to me?

Paladin now owns 11.79% (117,585,704 Shares or $74,078,993.52 worth) in DYL.

Paladin's Borshoff 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.

Now I can't understand why Paladin would have a policy of maintaining a strategic position in Deep Yellow for no convincing reason other than under-explored assets?

The only reason I can put to it is that Paladin must know that DYL is going to return them dividends in the future.

I wonder how good of friends the Doc and Borshoff are?

 

[doyoureallycare]

Firstly you said:

thus sold my 6-figure holding in DYL @67.5c. Not bad for almost 3 years' work, but am not to be able to sell for 71c.

Then you said:

3) The JV with TOE is the one that did it for me. Farming Napperby out smacks of a lack of ambition that is hard to explain given the caliber of the board. After getting the only JORC result they managed to produce all these years, why not produce the stuff ASAP to take advantage of uranium prices while they're still high

WARNING: It's quite a long read ahead...

What I can't work out, if what you claim is true is why sell now at 67.5c but didn't sell after the TOE JV in Feb?

 

[doyoureallycare]

Deep Yellow – Leon Pretorius
Deep Yellow has a non JORC resource position of ~24,000t of U3O8 mostly in calcrete hosted mineralisation. The company is purely exploration focussed and managed by geoscientists, and has the support of Paladin as a key shareholder (+10%). The company has a three year exploration budget of A$15m to be spread across NT (Tanami – Arunta), Qld (Miranda Project; Matrix Metals) and Namibia. Deep Yellow has essentially divested their interest in the Napperby project to Toro Energy as they believe Toro will be able to focus on developing the project. In Namibia, Deep Yellow has access to the Reptile resource (5 separate projects with a combined resource of 18,000t U3O8 @ 0.0263% U3O8). The landholding in Namibia is to the south and west of the Langer Heinrich deposit where drilling and EM work is expected to commence by Easter.
View: A good mix of exploration skills, vast uranium experience, Paladin links and prospective tenure. At this stage a strongly exploration focussed company.

http://www.allianceresources.com.au...de Uranium Conference Summary_23_March_07.pdf

 

[Mousie]

Firstly you said:

thus sold my 6-figure holding in DYL @67.5c. Not bad for almost 3 years' work, but am not to be able to sell for 71c.

Then you said:

3) The JV with TOE is the one that did it for me. Farming Napperby out smacks of a lack of ambition that is hard to explain given the caliber of the board. After getting the only JORC result they managed to produce all these years, why not produce the stuff ASAP to take advantage of uranium prices while they're still high?


What I can't work out, if what you claim is true is why sell now at 67.5c but didn't sell after the TOE JV in Feb?

Not sure what you're getting at by quoting both of my passages in bold at all. With regards to my 2nd comment it's very simple: I was waiting for the price to come back up to the previous high of 60c in Jan. The Feb correction merely prolonged, but did not change or prevent, my intention to sell the heads.

 

[Mousie]

At this stage a strongly exploration focussed company.

Precisely the reason why, given the vast amounts of landholding they have, I am massively disappointed with this statement. Uranium prices won't stay high forever.

An exploration focused company with no JORC resource with market cap of ~700m; thanks but no thanks, I'd rather move on.

 

[doyoureallycare]

Thats ok, we'll have to wait and see what the Namibian drill results look like in about a weeks time.

 

[Ubull]

Thats ok, we'll have to wait and see what the Namibian drill results look like in about a weeks time.

Why do you think Namibian drill results are imminent? Company is not indicating that this is about to happen....

 

[doyoureallycare]

All you have to do is ring DYL and ask them when they expect for the Namibian drill results to be released.

Thats what i've done.

 

[doyoureallycare]

The future is looking good for Deep Yellow

Deep Yellow plans to raise up to $40m in 1-for-12 issue
13:14, Monday, 21 May 2007

Sydney - Monday - May 21: (RWE Aust Business News) - Deep Yellow
(ASXYL) will undertake a one-for-12 non-renounceable entitlement issue
at 50c a share to raise up to $40 million.
The company said it is currently committed to spend $5m a year on
exploration but, given its growing portfolio, this rate is too low to
meet its objectives of becoming a substantial uranium exploration and
development company.
Exploration expenditure will now be increased to $9m this year
and to $15m next year.
The directors will take up their entitlements under this issue.
Deep Yellow shares were up 0.5 to 58c.
ENDS

Copyright © 2007 RWE Australian Business News. All rights reserved

 

[borat]

Re: The future is looking good for Deep Yellow

Can someone tell me what this means? Is it good or bad news for the current SP and how good for long term?

Deep Yellow plans to raise up to $40m in 1-for-12 issue
13:14, Monday, 21 May 2007

Sydney - Monday - May 21: (RWE Aust Business News) - Deep Yellow
(ASXYL) will undertake a one-for-12 non-renounceable entitlement issue
at 50c a share to raise up to $40 million.
The company said it is currently committed to spend $5m a year on
exploration but, given its growing portfolio, this rate is too low to
meet its objectives of becoming a substantial uranium exploration and
development company.
Exploration expenditure will now be increased to $9m this year
and to $15m next year.
The directors will take up their entitlements under this issue.
Deep Yellow shares were up 0.5 to 58c.
ENDS

Copyright © 2007 RWE Australian Business News. All rights reserved

 

[doyoureallycare]

Deep Yellow uranium prospect enhanced
09:46, Tuesday, May 22, 2007

Sydney - Tuesday - May 22: (RWE Australian Business News) -
Deep Yellow Limited (DYL) on 3 January 2007 announced that an initial
composite rock sample assay collected during the evaluation of Superior
Uranium’s Queens Gift uranium prospect on EPM 15070 (75 km north of Mt
Isa) by DYL’s consultant geologist returned a value of 3,530 ppm U3O8
from iron carbonate altered chloritic schist outcrops.
The Directors are pleased to announce that a three week field
mapping exercise recently completed at Queens Gift has significantly
enhanced the prospect's potential and extent with eightcomposite rock
samples containing significant amounts of uranium.
Composite Rock Sample ranged from 1,515 ppm U3O8 to 28,600 ppm
(that is, 2.86pc).
Anomalous radioactive zones are located within intensely
haematite-silicified magnetic rock occurring in a band up to 50 m wide
east of a contact with unaltered basalts. The anomalous zone is
discontinuous over a mapped known length of 1,200 m.
However, the central-south anomaly is relatively continuous over
more than 500 m of the 1,200 m strike length and swings ESE at its
southern end and appears open for another several hundred metre before
disappearing beneath alluvial and scree cover.
ENDS

Copyright © 2007 RWE Australian Business News. All rights reserved.

 

[doyoureallycare]

Deep Yellow Ltd and Uranio Ltd Establish a Joint Venture on
Four Uranium Properties in Western Australia and South Australia

The Boards of Deep Yellow Ltd. (ASX code “DYL”) and BlackGrange Ltd. (soon to be renamed Uranio
Limited “Uranio”) are pleased to announce they have reached agreement on commercial terms for the
acquisition by Uranio of a majority interest in four DYL uranium properties located in Western Australia and
South Australia.
Essentially, the proposal provides Uranio with the opportunity to acquire 70% of each of the wholly owned
DYL properties (as listed in Attachment 1) and in addition to acquire an overall 70% interest in the Siccus
joint venture, 90% of which is owned by DYL. Furthermore Uranio will have the opportunity to maximise its
ownership of the properties in the future by paying for the proven in-ground resource on terms referred to
below.
Finalisation of the transaction is subject to the negotiation and execution of a formal agreement within the
next month, followed by the proposed admission of Uranio Limited to the official list of the ASX no later than
23rd November 2007.
While these properties are highly prospective, they were acquired during DYL’s formative stages prior to its
present Board’s decision to concentrate efforts in select exploration areas where the Company now holds
large tracts of land under tenure and bases have been established. This left the projects subject to this
agreement geographically isolated and the disinvestment is in accordance with DYL’s previously stated
strategy of focusing its management and resources on the chosen priority exploration areas in Mt Isa,
Gawler Craton and Namibia.
DYL will continue to benefit from the opportunity provided to the new company which will be able to better
focus on and fully evaluate and explore the tenements. If this is successful it will result in significant returns
to DYL shareholders. Uranio will benefit from the acquisition and the subsequent focused and energetic
development of a portfolio of potential uranium exploration opportunities.
The principal commercial terms are as follows:
1. A$2,000,000 in cash made up as follows:
a) Uranio has made an upfront payment of A$250,000 in cash on the signing of the heads of
agreement.
b) Uranio will make a further cash payment of A$250,000 on the signing of a definitive sale
agreement on or before the 29th June, 2007.
c) A final cash payment of A$1,500,000 will be paid by Uranio out of the financial proceeds realised
from the proposed listing on the ASX.
2. Ordinary shares as follows:
a) The issuance to DYL of ordinary shares in Uranio Limited that will equate to 9.8 percent of the
total shares on issue as at the time of the initial listing of the Company on the ASX.
B. OTHER RELEVANT ITEMS
1. A joint venture agreement (JVA) will be entered into on transfer of the properties from DYL to Uranio.
Uranio will be the Manager of that JVA.
2. Uranio will become a participant in the Siccus joint venture agreement with a 70% stake, with DYL
retaining 20% and Signature Resources retaining its’ original 10% stake.
3. Effective immediately Uranio will pay all outgoings and maintain all the tenements and keep any joint
venture agreements in good standing. DYL will provide all the administrative and statutory expenditure
requirements necessary for this to be achieved until the transaction is completed and ownership can be
transferred.
4. DYL will have no representation on the board of Uranio.
5. Upon completion of a bankable feasibility study each party will have the right to decide whether to
participate in mining operations at the area that is the subject of the study. If one party decides not to
participate in mining operations then the other party will have the right to acquire the relevant JVA
interest for 15% of the in-ground value of the uranium as referenced (defined by JORC Code in lbs and
multiplied by the current uranium spot price per lb) in the feasibility study. At election the consideration
may be any combination of cash and shares, shares held by either party to be limited to no more than
20% of the issued share capital of the other party at the time.
The DYL Board’s rationale for the sale of these tenements is to allow DYL to focus on its advanced
exploration projects in Namibia, the Mt. Isa district and other priority regional targets close to already
established DYL bases and personnel throughout Australia. In addition DYL will be able to realise an
immediate return in cash terms from the projects and deploy this cash to priority projects. Last but not least
there is the opportunity to further benefit DYL’s shareholders through the retention of a significant direct
stake in each project and a retained equity interest in Uranio.
“Whilst DYL has a growing team of experienced uranium exploration personnel, the DYL Board recognises
that it makes sense for DYL to focus on its’ main priority projects and give a new company the opportunity to
focus on and aggressively advance these projects that might not otherwise get the levels of attention and
funding that they require.” Deep Yellow’s Executive Chairman, Dr Leon Pretorius said today.
“Given Uranio’s objective of becoming a uranium explorer, DYL and its shareholders will benefit from
Uranio’s focused efforts as DYL will become a significant shareholder of Uranio once listed and will remain a
stakeholder in the projects going forward.”
‘We are pleased to be able to enter into this transaction with Deep Yellow and look forward to welcoming
Deep Yellow as a substantial shareholder and joint venture partner. We are now focused on finalising the
appointment of a managing director, completing an IPO prospectus together with the appointment of a
broker, in readiness for listing on the ASX”, Uranio Director, Mr. Marcello Cardaci, said today.