ASX energy stock Deep Yellow Ltd (ASX: DYL) slumped almost 4% lower on Thursday after it released its March 2026 quarterly activities report.
Deep Yellow is a uranium development company with a portfolio of Australian and global projects. The company has two advanced projects: Tumas, its flagship project in Namibia, and Mulga Rock in Western Australia. Both projects are located within tier 1 uranium jurisdictions. The company is also evaluating Mulga Rock for critical minerals and rare earth elements.
On Friday, its share price recovered roughly 2%.
Following this week's volatility, it is up 60% over the last 12 months.
However it has fallen considerably from 52-week highs back in late January.
Image source: Getty Images
What did the company report?
During the week, the ASX energy company reported:
- Group cash balance on 31 March 2026 of A$171.6 million
- Deep Yellow continued to materially advance the staged development of the Tumas Project (Namibia), with multiple key milestones achieved as the Project moves closer to full construction readiness
- Exploration drilling at the Tinkas Prospect (Namibia) was completed in mid-March 2026, comprising 133 holes for 1,363 m.
Speaking on the results, management said:
Deep Yellow entered the March 2026 quarter with clear momentum across the business, underpinned by continued advancement of our flagship Tumas development project and a disciplined focus on creating long-term shareholder value. During the quarter, major engineering, procurement and early development activities progressed to reflect the quality of the asset and the capability of our team.
What is Bell Potter's view?
Following these announcements, the team at Bell Potter updated its view on this ASX energy stock.
DYL's refreshed management team is likely to maintain a disciplined strategy, which seeks to maintain leverage to underlying commodity price momentum with respect to development timelines for Tumas. We had anticipated a potential portfolio rationalisation, however, this is yet to be observed with a focus on advancing exploration activities across DYL's portfolio.
The broker has maintained its speculative hold recommendation on this ASX energy stock.
It has also reduced its price target to $1.90 (previously $2.00).
From this week's closing price of roughly $1.85, this updated price target indicates just 4% upside.
We maintain a Speculative Hold recommendation in line with our ratings structure. DYL is leveraged to the uranium and nuclear thematic, with numerous positive catalysts on the horizon. The appointment of a new Managing Director, Greg Field, should alleviate market concerns following the resignation of John Borshoff in October 2025. We see no material shift in strategy, which seeks to maximise exposure to rising uranium prices.
