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Emerging uranium supply shortage may lead to price overshoot – Deep Yellow’s Borshoff

Emerging uranium supply shortage may lead to price overshoot – Deep Yellow’s Borshoff

It is inevitable that the looming shortfall in uranium stocks will lead to a recovery of the commodity. Uranium supply growth in the mid to longer term is highly uncertain and there is some nervousness amongst nuclear utilities over an adequate supply of uranium in the future.

The Managing Director of Deep Yellow Ltd, John Borshoff told a gathering of mining executives and investors in Perth, Australia, it is irrelevant whether the shortfall occurs in 2020 or 2022, it is inevitable.

Borshoff, the founder and former CEO of Paladin Energy, is now the driving force behind Deep Yellow Ltd, an exploration company listed on the Australian Stock Exchange with a dual-listing on the Development Capital Board of the Namibian Stock Exchange. Deep Yellow is the main shareholder of Reptile Uranium, the exploration company that discovered the Tubas and Tumas mineralisations in the Namib desert.

“The supply shortage is inevitable and the certainty of future uranium supply is the core concern for utilities” Borshoff told the delegates at the Paydirt 2017 Africa Downunder conference.

“This reality will cause progressive upward price movement with clear potential for the price to overshoot” he said cautioning that the future supply concerns can be exacerbated since there are few companies with the proven capability to build and operate large production facilities to fill the emerging uranium supply shortage.

But Borshoff is extremenly upbeat about Deep Yellow’s prospects in Namibia. He used the conference as a platform to announce another major discovery in Reptile Uranium’s quest to find high yielding uranium deposits.

Drilling work in Exclusive Prospecting License EPL3497, only some 50 km away from the Langer Heinrich mine, has lead to the discovery of Tumas 3. This mineralisation shows similar characteristics to Langer Heinrich.

Drilling 400 holes over a four-month period, Reptile discovered mineralisation in 284 holes. The uranium ore body is relatively shallow, encountered first at just over five metres and extending down to around 21 metres. The thickness of the ore layer varies from three to 14 metres.

Borshoff said Deep Yellow is now targeting a uranium resource base exceeding 150 million pounds uranium oxide.

Punting Deep Yellow’s plus points, he said their strategy is now clearly defined under its new management. A strategic alliance with financing partner Sprott is in place and the investor base is regenerated. After a round of capital raising in June this year, Deep Yellow has access to Au$14.5 million.

The current uranium market is analogous to the depressed condition of around 15 years ago. This creates an opportunity for high wealth creation following a contrarian investment approach, according to Borshoff.


 

 

About The Author

Daniel Steinmann

Brief CV of Daniel Steinmann. Born 24 February 1961, Johannesburg. Educated at the University of Pretoria: BA, BA(hons), BD. Postgraduate degrees are in Philosophy and Divinity. Editor of the Namibia Economist since 1991. Daniel Steinmann has steered the Economist as editor for the past 29 years. The Economist started as a monthly free-sheet, then moved to a weekly paper edition (1996 to 2016), and on 01 December 2016 to a daily digital newspaper at www.economist.com.na. It is the first Namibian newspaper to go fully digital. Daniel Steinmann is an authority on macro-economics having established a sound record of budget analysis, strategic planning and assessing the impact of policy formulation. For eight years, he hosted a weekly talk-show on NBC Radio, explaining complex economic concepts to a lay audience in a relaxed, conversational manner. He was a founding member of the Editors' Forum of Namibia. Over the years, he has mentored hundreds of journalism students as interns and as young professional jourlists. He regularly helps economics students, both graduate and post-graduate, to prepare for examinations and moderator reviews. He is the Namibian respondent for the World Economic Survey conducted every quarter for the Ifo Center for Business Cycle Analysis and Surveys at the University of Munich in Germany. He is frequently consulted by NGOs and international analysts on local economic trends and developments. Send comments to daniel@economist.com.na

Following reverse listing, public can now acquire shareholding in Paratus Namibia

Promotion

20 February 2020, Windhoek, Namibia: Paratus Namibia Holdings (PNH) was founded as Nimbus Infrastructure Limited (“Nimbus”), Namibia’s first Capital Pool Company listed on the Namibian Stock Exchange (“NSX”).

Although targeting an initial capital raising of N$300 million, Nimbus nonetheless managed to secure funding to the value of N$98 million through its CPC listing. With a mandate to invest in ICT infrastructure in sub-Sahara Africa, it concluded management agreements with financial partner Cirrus and technology partner, Paratus Telecommunications (Pty) Ltd (“Paratus Namibia”).

Paratus Namibia Managing Director, Andrew Hall

Its first investment was placed in Paratus Namibia, a fully licensed communications operator in Namibia under regulation of the Communications Regulatory Authority of Namibia (CRAN). Nimbus has since been able to increase its capital asset base to close to N$500 million over the past two years.

In order to streamline further investment and to avoid duplicating potential ICT projects in the market between Nimbus and Paratus Namibia, it was decided to consolidate the operations.

Publishing various circulars to shareholders, Nimbus took up a 100% shareholding stake in Paratus Namibia in 2019 and proceeded to apply to have its name changed to Paratus Namibia Holdings with a consolidated board structure to ensure streamlined operations between the capital holdings and the operational arm of the business.

This transaction was approved by the Competitions Commission as well as CRAN, following all the relevant regulatory approvals as well as the necessary requirements in terms of corporate governance structures.

Paratus Namibia has evolved as a fully comprehensive communications operator in Namibia and operates as the head office of the Paratus Group in Africa. Paratus has established a pan-African footprint with operations in six African countries, being: Angola, Botswana, Mozambique, Namibia, South Africa and Zambia.

The group has achieved many successes over the years of which more recently includes the building of the Trans-Kalahari Fibre (TKF) project, which connects from the West Africa Cable System (WACS) eastward through Namibia to Botswana and onward to Johannesburg. The TKF also extends northward through Zambia to connect to Dar es Salaam in Tanzania, which made Paratus the first operator to connect the west and east coast of Africa under one Autonomous System Number (ASN).

This means that Paratus is now “exporting” internet capacity to landlocked countries such as Zambia, Botswana, the DRC with more countries to be targeted, and through its extensive African network, Paratus is well-positioned to expand the network even further into emerging ICT territories.

PNH as a fully-listed entity on the NSX, is therefore now the 100% shareholder of Paratus Namibia thereby becoming a public company. PNH is ready to invest in the future of the ICT environment in Namibia. The public is therefore invited and welcome to acquire shares in Paratus Namibia Holdings by speaking to a local stockbroker registered with the NSX. The future is bright, and the opportunities are endless.