DYL - Deep Yellow

[noirua]

Bombed out are Deep Yellow Limited as their main aim is Uranium production. Uranium price is stuck at just over US$50 a lb and that equals little profit for DYL. If the uranium price rushes on up then DYL are a stock to buy, there lies the big gamble, it could go down further.

Well, since April Deep Yellow descended further and below 4c for a time. The International rights issue at 4.2c was only partly taken up but fortunately all was sold to another party.
Basically, since then, drilling results continued to improve and DYL are now at 8.2c.

For those of us who had the faith and bought in the Rights Issue, for once all is well.

 

[pixel]

After years in the Deep, DYL looks set to join the growing number of U-hopefuls.
Or was today merely a last gasp effort to attract attention? We shall know tomorrow.



The Closing Auction finished at 1.5c, leaving no gap-up.
Six Directors bought recently, so I did too. Highly speccie, so DYOR

 

[piggybank]

ERA (Energy Resources Australia) is creating an ascending triangle. However, remember the stock is very illiquid.

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[greggles]

Remember Deep Yellow Limited? Back in 2007 it reached $13 a share for a very brief moment. Since then it has gone the way of most commodity boom darlings - down. However, they are still in Namibia and still drilling for uranium and recently their share price has been heading north. Since the beginning of April the DYL share price has increased from 24c to 34.5c and in June the volume has increased dramatically even though there have been no announcements of note since April.

Someone building a stake?

 

[tech/a]

Remember Deep Yellow Limited? Back in 2007 it reached $13 a share for a very brief moment. Since then it has gone the way of most commodity boom darlings - down. However, they are still in Namibia and still drilling for uranium and recently their share price has been heading north. Since the beginning of April the DYL share price has increased from 24c to 34.5c and in June the volume has increased dramatically even though there have been no announcements of note since April.

Someone building a stake?

Possibly

 

[greggles]

Thanks for the insight.

It's interesting how volume tells one part of the story while price action tells another. The connection between volume and price action is something I wish I understood better. It's definitely an area where I plan to increase my knowledge.

 

[tech/a]

Its a combination of
(1) Volume
(2) What that volume does when it comes in---to price
(3) Often over looked--What price and volume do AFTER it comes in.

I may get some time tonight to mark up this chart with an explanation.
Its very tradeable.
Lots of charts tell similar stories if you can read them.

 

[greggles]

Its a combination of
(1) Volume
(2) What that volume does when it comes in---to price
(3) Often over looked--What price and volume do AFTER it comes in.

I may get some time tonight to mark up this chart with an explanation.
Its very tradeable.
Lots of charts tell similar stories if you can read them.

Thanks tech/a. I'd be very interested in seeing any chart that you marked up. I just checked and couldn't find a thread about the relationship between volume and price action so perhaps it's time for a thread on the topic? If you have the time that is.

I guess the real issue is volume and price action as they relate to trading setups for timing entries and exits. That is where the practical application would be for me I think.

 

[tech/a]

I’ll do that
It’s a fascinating topic

 

[tech/a]

Visitors Will do it when I can!

 

[greggles]

Let's take another look at Deep Yellow one month later.

After reaching 35c it was sold down on fairly low volume until 30c where it found some support. On 29 June it gapped up to 34c and it has not ventured below that level since, consolidating between 34c and 37c for a week before climbing to a high of 39.5c today.

The catalyst for today's move was an updated Mineral Resource Estimate for the Tumas 3 deposit, which increased by 32% while maintaining the average grade.

I think this could have further to go in the short term, but am just watching from the sidelines at the moment.

 

[bux2000]

For those more discerning than I . Could this been seen as a head and shoulders pattern
for DYL

Thanks
bux

 

[tech/a]

For those more discerning than I . Could this been seen as a head and shoulders pattern
for DYL

View attachment 122138

Bit of a stretch Bux

Thanks
bux

 

[bux2000]

Thanks Tech/a,

You must have noticed by now I can get a little prematurely excited.

Maybe a Travel Agent in a former life .

bux

 

[bux2000]

Bit of a stretch Bux

You were so right and I was so wrong.

Thanks again for your time and I hope all is all well in your world.

bux

I hold

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[Sean K]

Uranium juniors have trippled ++ in the past couple of years anticipating the rise in the POU once the supply/demand thingy really hits due to all the shut downs after Fukushima. Sprott (Rick Rule) jumped on this early and started buying about three years ago, or more, and is heavily ramping U stocks. He owns quite a bit of DYL and has backed BOE. His main interest in DYL is due to the management (and the resources of course) but he's got significant history with Borshoff when he was at Paladin and was one of the few who jumped on board when PDN was at about 5c and I think hit 1c at one point. Rule was onto it large and rode it all the way to $10, while taking profits on the way. He talks about this in all his interviews when he's talking about uranium and I think it's what made him a billionaire. Anywho, as by the chart this has also jumped up well ahead of the POU and where it needs to be for these assets to be turned back on which is around the $50-60 POU. Once the baggage of Fukushima wears off and the greenies realise that nuclear is the only source of base load power that will actually save the planet, I'd expect these types of stocks to jump significantly. It might take some time yet, but I think with patients if you're on the right U stocks, you may do OK. Unless there's another Fukushima, which if you actually researched it, didn't do that much damage at all. My rant for the day.

If you have 20 mins and want an informed environmentalists opinion on nuclear power Shellenberger talks quite a bit about Chernobyl and Fukushima on this Ted Talk. Good watching.

 

[Sean K]

As mentioned above, waiting for an entry into DYL. Uranium juniors have run away from any U price jump so being very cautious for a major turn back to the U bear market since Fukushima. But, 60c looks like a floor at the moment. A recent analyst report here and screen shot first page summary below with US$1.29 target.

 

[Sean K]

New company presentation out. Nothing new really. Market cap doubled in the past couple of weeks which is the only concerning thing to me. I was hoping to keep topping up on dips or a major market correction. That may still happen I suppose, but no chasing on emotion or FOMO for me.

As per corporate overview you can see why Sprott under Rick Rule (previously) was so interested in DYL. Half the staff are ex-Paladin which made him a gazillionaire, so he's really just backing them in.

 

[Sean K]

DYL, along with the other juniors, are turning into mid-caps even though they're not mining anything. I've only picked three to commit to in DYL, BOE and LOT due to management and position relative to the rest in regard to restart timing and costs. DYL is way behind in regards to mining compared to PDN (too expensive to me) and BOE and LOT (both only one year to restart and about $60-80m Capex) but with the old PDN band driving the show I'm sure they'll get there. POU still needs to settle above $60 for all these to restart, but it's already run from $35 to $50 ish over the past month or so due to SPUTT. There will be some bumps and MCs have run too hard too fast but long term play.

 

[Sean K]

Along with the Tumas Project which has the above deposit defined they also own what's called Omahola about 20km NW of Tumas Central. Tumas is a palaeochannel deposit like Langer H, while Omahola is a basement / alaskite type deposit like Rossing/Husab. Not sure what that exactly means with mining and processing of the ore body. I assume it will require a different mill in another location central to the three current deposits - Ongolo, Ms7 and Inca.

With an already defined 2004 JORC that will need to be upgraded to 2012 standard it shouldn't take long for DYL to have two deposits and become a multi project miner in the future. They need to work fast though I think because this could turn into the same situation as the mid naughties where a bunch of juniors defined resources and then the market fell out of the bottom leaving them all hanging. Although, that was mainly due to Fukushima, so maybe more mines will be possible to fill the upcoming supply/demand gap.

Once defined this should take them up to the 150m lb @ 350-450ppm mark.