Uranium project developer Deep Yellow Ltd (ASX: DYL) has named a former Rio Tinto Ltd (ASX: RIO) executive as its new managing director, as the company moves towards making a decision to go ahead with its flagship project in Namibia.
Deep Yellow shares plummeted in October when the company announced that its long-term managing director, John Borshoff, would step down from his role.
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Market shocked by exec's departure
The company's shares fell more than 10% on the day of the announcement, dipping below $2 per share on the day, and have been trading at levels around $1.60 ever since.
Mr Borshoff is a leading light in the uranium sector, having founded Paladin Energy Ltd (ASX: PDN), which he helped build into a multi-mine uranium producer.
Mr Borshoff left Paladin in 2015, joining Deep Yellow in October of 2016.
His decision to leave Deep Yellow sparked a global search for a new leader, with the company announcing on Tuesday that it had appointed Greg Field as managing director, effective May 1.
New boss well-credentialled
The company said in a statement to the ASX that Mr Field had strong project development experience.
A qualified mining engineer, Mr Field was previously managing director – project development at Rio Tinto. Over a 29-year career in the resources sector, Mr Field has gained extensive experience across operations and project studies, and significantly, he has extensive experience of both brownfield and greenfield capital project execution.
The company said that during his time at Rio, Mr Field delivered a number of major projects and studies across various commodities, including diamonds, copper, aluminium, and lithium.
His execution capability spans large-scale developments such as the US$7 billion Oyu Tolgoi underground project, as well as smaller technically complex processing facilities including the US$400 million Rincon DLE plant in Argentina and the US$1.3 billion AP60 Aluminium smelter in Quebec.
Deep Yellow itself is at a crucial phase of its flagship project's development, with the company poised to make a final investment decision on its long-life Tumas project in Namibia.
The company announced in October that there was potential to extend the project's life beyond its current 30-year mine plan, following positive drilling results at the S-Bend prospect within the project.
Deep Yellow has delayed making a final decision to go ahead with the project while it waits for the uranium market to recover.
Mr Field said he was convinced Deep Yellow had a significant role to play in bringing new uranium supplies to the market.
I believe uranium has a key role to play in the global transition to clean energy, and Deep Yellow is uniquely positioned to contribute to that shift. I have been impressed by the depth of experience within the Deep Yellow team and the progress achieved on the Tumas Project. I am fully aligned with the Company's strategy, and with two execution ready projects in Tumas and Mulga Rock, the Company is well-positioned to capture the upside potential of the market and deliver long-term value to shareholders.
Deep Yellow was valued at $1.56 billion at the close of trade on Monday.
