This ASX uranium stock is powering up today. Here’s what just dropped

Deep Yellow Ltd (ASX: DYL) shares are pushing higher on Tuesday after the uranium developer released its March quarter update.

At the time of writing, the Deep Yellow share price is up 1.29% to $1.96.

While the quarter was predominantly centred on progressing its flagship project in Namibia, work also continued across its other assets.

Here’s what came through.

Tumas project moves another step forward

For the 3 months to 31 March, Deep Yellow continued advancing its Tumas Project as it moves through development.

Detailed engineering reached 68%, while bulk earthworks hit 91% by the end of March.

The company said tendering is now complete for 79% of major process plant equipment packages. This is expected to support planning ahead of a final investment decision (FID).

Work on site has included excavation, backfilling, and early preparation around the processing plant and supporting infrastructure.

Deep Yellow also noted that civil construction is expected to begin in the next quarter.

Overall, the project is getting closer to construction, with the remaining steps centred on approvals and funding.

More drilling and studies across the portfolio

Outside of Tumas, exploration activity continued across its Namibian assets.

Drilling at the Tinkas prospect was completed in March, covering 133 holes for 1,363 metres.

Results confirmed uranium mineralisation and also pointed to further potential across the broader Tumas district.

The company expects that more drilling will be needed to define a resource in that area.

Elsewhere, trade-off studies at the Mulga Rock Project in Western Australia are ongoing, feeding into an updated feasibility study.

Early pilot work has backed up earlier recovery expectations, with the company also looking at ways to bring costs down.

At the Alligator River Project in the Northern Territory, seismic surveys have helped pinpoint the best areas to target for future drilling.

Balance sheet remains well funded

Deep Yellow ended the quarter with a cash balance of $171.6 million.

That leaves it in a solid position as it continues advancing Tumas and its wider portfolio of assets.

The company said uranium market conditions remained supportive during the period.

Long-term contract activity is starting to pick up, with utilities moving to secure supply amid growing demand expectations.

Uranium prices have also held up, despite some volatility in spot markets.

What investors will be watching next

Deep Yellow’s latest update shows its flagship project continuing to move forward across a few key areas.

Engineering, procurement, and site works are all advancing and are tracking to plan.

The key things to watch will be timing and costs at Tumas as the project moves into its next stage.

The post This ASX uranium stock is powering up today. Here’s what just dropped appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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.