Up 130% since April, ASX 200 uranium stock on track for first African production

The ASX 200 uranium stock is catching plenty of investor interest today. But why?

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Key points

  • Deep Yellow shares have surged 129.8% since April lows, now trading at $1.815.
  • The company’s Tumas project in Namibia is advancing on schedule. 
  • Recent drilling at S-Bend may expand Tumas resources; the company anticipates uranium supply shortages due to rising demand.

S&P/ASX 200 Index (ASX: XJO) uranium stock Deep Yellow Limited (ASX: DYL) has been on a tear since closing at 52-week lows of 79 cents a share on 9 April.

This morning, shares are edging higher once more.

Deep Yellow share closed yesterday trading for $1.810. At the time of writing, shares are changing hands for $1.815 apiece, up 0.3%. This sees shares in the ASX 200 uranium stock up a whopping 129.8% since those 9 April lows.

Here's what's happening today.

ASX 200 uranium stock on schedule for 2027 production

Investors are poring over Deep Yellow's September quarterly update today.

For the three months to 30 September, the ASX 200 uranium stock continued apace with the development of its Tumas project, located in Namibia.

The company said the work is progressing on schedule.

Detailed engineering on Tumas, along with off-site power and water infrastructure finalisation, was reported to be continuing to advance. The company has received tenders for the design and installation of the water supply pipeline, the overhead powerline, and the solar farm. These are currently being evaluated.

In other progress, the ASX 200 uranium stock noted that bulk earthworks have commenced at site in preparation for the civils' contract commencement, which is expected early in 2026. All the required temporary site facilities for construction are now in place.

Management noted that "operational readiness planning continues to ensure a seamless transition from construction, through commissioning and the production ramp-up to full design".

Tumas was said to remain on track to deliver its targeted first uranium production in the third quarter of calendar year 2027.

Deep Yellow ended the quarter with a cash balance of $203.5 million.

What's ahead for Deep Yellow shares?

Early in the new quarter, the ASX 200 uranium stock completed 3,361 metres of shallow reverse circulation (RC) drilling, comprised of 452 holes, at its S-Bend prospect. That drilling identified four clusters of higher-grade mineralisation.

Management said results like those from S-Bend highlight the "potential to add to the Tumas resource and extend beyond the current 30-year Life of Mine".

The company also acknowledged the resignation of CEO John Borshoff, who stepped down from the role on Monday, 20 October. Deep Yellow said the process for appointing Borshoff's replacement is "well progressed".

And looking ahead, the ASX 200 uranium stock expects that limited new supplies along with growing demand will lead to supply shortfalls in the short to long term.

Pointing to the WNA bi-annual market study, released in September 2025, Deep Yellow added:

This expected shortfall will be exacerbated by the rapid emergence in the electricity requirements of the hyperscalers and their insatiable appetite to build more and more datacentres to satisfy the needs of artificial intelligence (AI).

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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