DYL - Deep Yellow

[Sean K]

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

So, they've got rid of Nolan's Bore, and now their tenaments in SA and WA. What have they got left to sell off? QLD and Namibia? Not too long before they become a shell company. Are they admitting they can't take these things to potential production?

 

[doyoureallycare]

hahaha your really are a funny fellow aren't you Kennas.

Give me a break, DYL don't need the useless projects, they only keep the ones that are worth keeping.

What type of post was that anyway?

 

[Sean K]

hahaha your really are a funny fellow aren't you Kennas.

Give me a break, DYL don't need the useless projects, they only keep the ones that are worth keeping.

What type of post was that anyway?

If they're useless why are they keeping 30% interest?

Perhaps it's good that they focus on the other projects, but Mr Market doesn't seem to think so at the moment. Down a percent or two.

What's your take on this DYRC? It's fine to cut and past an announcement into the thread but do you think this is a good move by DYL? I'm sure you do. Better top up then eh?

 

[doyoureallycare]

Oh well maybe you just don't like DYL but I reckon you just don't like me.

ANYWAY DYL PRE-OPEN again.

Whats coming up next?

 

[doyoureallycare]

Deep Yellow Ltd / Dominion Mining Ltd – Western Gawler Project

The Directors of Deep Yellow Limited (DYL) have resolved to issue 21,931,651 fully paid ordinary
shares in DYL to Dominion Mining Ltd (DOM) in order to acquire a 51% interest in the uranium
rights to the Western Gawler Tenements subject to the Western Gawler Uranium Exploration and
Development Project (the Project) Heads of Agreement between DYL and DOM (ASX 22
February, 2006).
The interpretation of data from an Airborne Electromagnetic (AEM) survey over the tenements
confirmed the presence of extensive palaeochannel systems previously interpreted from remote
sensed satellite data and regional mapping by the South Australian Geological Survey. Importantly
the AEM data provides detail information on channel meanders (potential uranium deposition sites)
and an estimate of channel depths.
DYL is planning to undertake a minimum 12,000 metre RAB/Aircore drill programme on 1 to 2
kilometre spaced traverses across these channel systems. The drilling will initially target the
delineation of preferred host lithologies and the presence of redox fronts. Plans showing the areas
to be drilled have been submitted for clearance by the traditional Aboriginal owners under DOM’s
access Agreement. A drill rig has been secured and drilling is scheduled to commence during
June/July pending clearances.
An Appendix 3b is attached applying for quotation of the shares to be issued together with an s708
Notice as required by the Corporations Act 2001.
Yours sincerely,

 

[TheAbyss]

My view is that DYL have more projects than they can possibly develop at the moment so have evaluated their positions and decided on a strategy which allows them to get something out of the ground sooner rather than later.

If you follow that line of thought SA and Namibia would get priority over WA. Qld is an unknown quantity so we may see something moving their also in the short term depending on the line of thought Dr Leon has.

If you take that a step further, DYL have now bought some time for their longer term projects and can concentrate on the more immediate opportunities whilst silencing some of their detractors who claim that DYL will never actually produce anything.

All in all a fairly positive step in my view.

 

[Mousie]

Deep Yellow Ltd / Dominion Mining Ltd – Western Gawler Project

The Directors of Deep Yellow Limited (DYL) have resolved to issue 21,931,651 fully paid ordinary
shares in DYL to Dominion Mining Ltd (DOM) in order to acquire a 51% interest in the uranium
rights to the Western Gawler Tenements subject to the Western Gawler Uranium Exploration and
Development Project (the Project) Heads of Agreement between DYL and DOM (ASX 22
February, 2006).

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.

Boy do old habits die hard at DYL. Really glad I got off a while ago...100 characters yet? No? YES!

 

[prawn_86]

So whats everyones opinion on this at the moment?

Personally i think the rights issue has set a floor price of 50c and for it to fall below that would be unlikely. Secondly i am a mediuim to long term investor rather than a trader so i still believe there is plenty of upside for dyl, especially considering its pdn connections and the fact that it has now decided which particular tenements it intends to focus on.

 

[falconx]

My opinion is that it is getting quite oversold now so i bought back in again. I did so mainly due to the pending announcement of drilling results and price of U is probably going up again soon in the next auction, should see U stocks back in business. How likely is it that we will get an announcement regarding Namibian drilling results this month? I think it should get some support at 50-51 cents but if it falls to around 45 ill probably accumulate a few more.

 

[prawn_86]

lots of volume and a big jump in sp today. does this constitute a breakout?
any ideas as to why? or was it just oversold?

 

[doyoureallycare]

Could be 3 things.

1) We all know that DYL is announcing drill results this month. So todays action could have been just a taste of whats to come?

2) Paladin has increased its interest in DYL again. If this has happened, then I would expect a buying frenzy to start esspecially after PDN didn't buy SMM.

3) Could be something new, Eg. Another project, JV etc.

I'm happy either way

 

[doyoureallycare]

Just keep this in mind just incase!

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]

Just noticed that a trade of 1 million shares went through at 58.5c not long ago.

13:27 187,093 59 4,000
13:19 181,297 58.5 880,000
13:19 181,296 58.5 5,000
13:19 181,295 58.5 50,000
13:19 181,294 58.5 1,000
13:19 181,293 58.5 30,401
13:16 179,573 58.5 20,000 XT
13:16 178,832 58.5 559
13:11 175,247 58.5 5,000
12:57 151,740 58.5 506
12:55 150,919 58.5 63,534

 

[Haveacrack]

Just noticed that a trade of 1 million shares went through at 58.5c not long ago.

13:27 187,093 59 4,000
13:19 181,297 58.5 880,000
13:19 181,296 58.5 5,000
13:19 181,295 58.5 50,000
13:19 181,294 58.5 1,000
13:19 181,293 58.5 30,401
13:16 179,573 58.5 20,000 XT
13:16 178,832 58.5 559
13:11 175,247 58.5 5,000
12:57 151,740 58.5 506
12:55 150,919 58.5 63,534

That was probably a director bailing out, seriously that's an encouraging sign ( (i think - isn't it!!!))

 

[doyoureallycare]

How many shares do the directors own?? Is there an anouncement that the directors sold? NO!

Give me a break

 

[barney]

lots of volume and a big jump in sp today. does this constitute a breakout?
any ideas as to why? or was it just oversold?

Hi Prawn,

Probably not a breakout, but the price action an DYL looks pretty interesting to me atm considering the state of the market, coupled with the "out of favour" U stocks .................... I think we will see a few days consolidation on DYL, followed by a nice run of leg ups if the action between late March to late April is any indication .......... The pattern is emerging very nicely imo.

 

[doyoureallycare]

12,000,000 shares changed hands under SP XT Basis just before the close.

Pushed the price back to 56c.

Any thoughts?

 

[philby3]

DYL's next issue is being offered to existing shareholders based on their holdings - 1 new share for every 12 held - with the record date for entitlement being set on 21 June 07.

Could be someone eyeing off 1mill shares in the option.

 

[Haveacrack]

How many shares do the directors own?? Is there an anouncement that the directors sold? NO!

Give me a break

Easy Tiger......obviously you are very emotional about this stock and you can't take a joke. If you read the thread in its context it was meant as a joke and is exactly that.

 

[Ubull]

Namibia licence announcement out.... area seems to have gone to feasibility in the past.... go to website www.deepyellow.com.ai - better picture than on ASX website...