Must Watch - John Borshoff, The Uranium Interview

Utilities operating as slow, cumbersome government machines with comfort in government-to-government supplier relationships lack genuine security of supply due to false comfort, and must adopt innovative supply arrangements with new counterparties to ensure survivorship.

“Most of the utilities of the world are government. These slow cumbersome machines that would look around and it's and there's a comfort of a of a government utility talking to a government supplier and they talk all these bloody languages and there's there's some faint us but in it's false there's no security of supply.”

Demand for uranium is absolutely booming across utilities, data centers, China (maintaining strong growth projections), EU (except Germany and Austria), Southeast Asia, North America, and Middle East, with data centers requiring immediate additional nuclear capacity.

“When you look at demand absolutely booming. When you look at China maintaining that strong projection growth projection not wavering. The EU apart from the Germans and Austrians overwhelming support with real commitments, you know, the Swedes the the the Finns and just generally and and now a bit of a swing even with the with the Italians and and it's all it's all eroding onto, you know, we need sustainable power. The major turnaround in Southeast Asia as I said before North America that awakening giant which is not yet implicated on top of the issues. Middle East which are pursuing nuclear with intent. And then the data centers. And requires additional immediate nuclear.”

Kazatomprom is in corporate and technical trouble; Cameco lacks mentality of greenfield developer, remaining primarily an operating/producing company despite rhetoric.

“Kazatomprom is in trouble. Whether you look at it corporate or technical. I think Cameco is unprepared for serious greenfield growth. They're more an operating company in mentality”

Three Mile Island, Palisades, and Duane Arnold reactors are bringing inventory requirements sooner than utilities originally planned, and these data center-driven reactor restarts are already 3-4 million pounds short on fuel supply.

“when you see these data centers starting up the Three Mile Islands and the Palisades and the Duane whatever they call Arnolds and all of these. And and when you see that and probably bringing inventory requirements sooner than later on on projects that were unplanned by the utilities means you say oh they're 3 to 4 million pounds already short.”

China is building 150 reactors requiring approximately 300 million pounds of uranium for initial cores, plus another 100 reactors by 2040-2050, requiring an additional large strategic stockpile accumulated today.

“China is so aggressive. It's aggressive because it wants to build 150 reactors, which is 300 million pounds they've got to have to to get those initial cores going. And and they're still aggressive getting uranium, because in 2040, 2050, they're they're building another another 100 reactors, which they need.”

Chinese uranium ownership is already embedded in Namibia through CNNC (representing large Chinese utilities) in Rossing and CGN in Husab; consolidation of non-Chinese Namibian uranium into a single supplier-JV with BHP or Rio Tinto is unlikely because China won't consolidate its position and substantial low-grade material in Namibia could support multiple supply arrangements.

“if that person is meaning all of the non-Chinese uranium, Okay. uh, because the Chinese won't consolidate. I mean, you've got the two of the largest utilities in China now represented through CNNC in Rossing and through, uh, uh, uh, CGN in in Husab.”

Alligator Rivers mineralization is controlled by fundamental geological features that define prospective corridors; drilling within these corridors yields 'far more significant' targets than random drilling outside the geological model.

“we have geology we have geophysical signatures of of magnetics gravity and and things and and looking at where deposits are and from that combination and and already some results that Cameco achieved we will start we have defined the prospective corridors and how they wrap around certain fundamental geological features. So they they become the focus of our work and and and a result there that is anomalous would be far more significant than an outlier somewhere where you get a where there's no thematic to it.”

Mothballed uranium operations coming into production only replace the diminishing underfeed material from previous decades; they contribute no new uranium supply, merely rebalancing the 30-40 million pound underfeed that has accumulated back to status quo levels.

“The mothballed operations that are coming into production are only replacing the diminishing underfeed material and they're we're now only replicating the production of mine uranium back in 2012. So there's no new uranium coming in it's just rebalancing the 30 40 million of underfeed is coming off as the 30 to 40 million if you include McArthur coming in and just getting back to status quo.”

Market-related uranium contracts now have established floors ($80-85 per pound) and ceilings ($130 per pound), and utilities will be forced to pay within this range as inventory shortages emerge in 2026-2027.

“with the with the market related contracts floors and ceilings which is I think a real truism sitting between 80 85 floors 130 ceilings. The $65 is is out of the question.”

Contract NDAs (non-disclosure agreements) in uranium markets originated from Cold War nuclear weapons program secrecy that transferred into civilian nuclear contracting; this non-transparency persists despite being historically contingent.

“the new the the the civilian, uh, uh, nuclear developed in the late '70s and basically came out of terms of the expertise that crossed over and the secrecy at which the nuclear armament programs were running on that some of that secrecy transferred into contracting.”

Uranium companies cannot commit to production timelines of 2029 from a 'wait and see' position announced tomorrow; such timeframes are impossible to meet and represent entrepreneurial overstatement driven by need to keep stock prices attractive during down cycles.

“you cannot you cannot sort of decide tomorrow from a a wait and a wait and see to say then I'm going to be producing uh by 2029. Impossible.”

Deep Yellow's $250 million capital raise was 'a stroke of brilliant' strategy because it provides funding for early-stage work at Tumulus before project finance debt is drawn, eliminating need to lock in financing at potentially unfavorable prices or future dates.

“the and the um and essentially we will be spending our money that we have before the debt drawdown happens. So, all of that that raising that we made of 250 million even if I'm modesty aside, was a stroke of bloody brilliance. Because it's given us a a a possibility to do things differently to proceed.”

Tech companies (Google, Microsoft, Oracle) entering uranium production decisions will force traditional utilities to innovate and compete on operator expertise and security of supply, not just purchase power at lowest cost.

“The hyper scalars are the end of product but before that some of the SMR vendors are also acting in a different way than the old-fashioned utilities... will they buy into into There's definitely going to be change there has to be.”

Oil companies will not invest in uranium mines even during energy transitions because uranium mining generates only ~$200 million per year, which is insufficient to satisfy shareholder expectations from companies accustomed to billion-dollar revenue scale from hydrocarbon operations.

“everybody came into uranium. And when these all these oil companies came into uranium, they really didn't think what what how much how little money uh it would generate to generate such a huge amount of electricity power. So, they ended up thinking that that that they were making billions, you know, and all of a sudden if you've got a uranium mine or you're supplying uranium, uh it it is just 200 million a year.”

Enterprise Value (EV) per pound in uranium acquisitions during 2000s Paladin era ranged from $3-4/lb to $10-11/lb (when Russians bought Tanzanian deposits, French bought Trenor Copper); these valuations assumed $70-80/lb uranium pricing.

“the EV per pound moved from $3, $2, to $11 to $10 where where the Russians bought, uh, the Tanzanian deposit, uh, where uh, where the French bought Trend Copy. So, they were in that sort of $10 to $11 a pound with a with a sort of an expectation that the price of uranium at that time was going to be in that $70 to $80 a pound.”

Bannerman Resources' decision to delay uranium production start because current prices are unsustainable is a 'good sign' that the industry is recognizing the need for higher prices to support greenfield development.

“You know listen to what Bannerman said which I which I admire. They said they're they're delaying their feed because they don't believe the prices are where they should be. These are good signs.”

Building new reactors is insufficient without operator expertise; hyperscalers will need to partner with utilities for operations or hire experienced nuclear operators, limiting their ability to fully bypass the utility sector.

“investing in the business is like in a complicated business is like buying an airplane. If you haven't got pilots if you haven't got bloody whole maintenance people you can't you can't drive these things so building the reactors is not is not the end or unless you have an operator who can actually do things”

Mulga Rock project's value increases substantially by mining holistically across the deposit footprint (uranium + non-uranium commodities), rather than selectively picking high-grade uranium ore as Vimy had planned.

“we believe that you could you needed to look at the in the approved area of the Mulga Rock East, which is the Ambassador and Princess deposits that by looking at a in the footprint of the deposit, looking at it much more holistically of the uranium and the non-uranium you could increase the value of that project hugely, substantially.”

Pitchblende mineralization (pencil-rich 10% deposits) that occurs in Athabasca basin does not occur in Alligator Rivers; too many companies wasted capital trying to find Athabasca-style targets in Alligator Rivers.

“the manifestation of a of a peculiar enrichment occurs in Athabasca which is these pencil rich sort of 10% pitchblende that don't occur in and and too many people have wasted too much bloody money trying to find that type of target in the Athabasca. But the Athabasca has got less pounds in it than what already has been discovered in in in in the Alligator region.”

Omahola project in Namibia contains two mineralization phases: a high-grade secondary uranium phase similar to Rossing (350-450 ppm) overlaying a lower-grade primary phase (100 ppm), giving it a resource character similar to Husab/Rossing rather than single-phase deposits.

“in the basement where Rossing and Husab exist there are two levels of mineralization. One level which gives you that sort of 100 ppm and there's another level of of introduction of a secondary uranium which gives you the higher grade where you can get 450 350 like Rossing and where Bannerman's is sitting at 200. Omahola has got those two phases.”

European capital markets connect through ASX platform more effectively than through Toronto exchange, providing Deep Yellow access to European institutional uranium investors.

“In parallel, and I had the most successful dual listing of any any listed company where where they, you know, by by more by accident that the the the cross feeding of both those exchanges were just terrific in high volume. Um I've lost a bit of faith in the in the Toronto stock exchange... there's a very good connection into the European because of the way in which the stock exchange and it's not working on on on 1950s practices, very transparent shareholding, not through brokers”

Deep Yellow's demonstrated execution capabilities and geological/engineering expertise distinguish it from companies that burn capital without delivering value; this capability justifies investor confidence in alternative funding structures.

“we look at opportunities a bit different than how maybe others look at it, not only from, uh, uh, the eye of a dreamer, but also through the eye of an engineer, of the process people, of the geological, all of those sort of things... You can have as much money as you like. You put it into some of these companies. They'll never turn it into to say, 'Hell, this is where this this group can get to'”

Before FID (end of 2024), Deep Yellow will have frozen three critical project components: (1) project scope definition, (2) budget/cost estimate, (3) schedule/milestones; this frozen template controls execution and prevents cost/time creep.

“Before FID what we will have is three very important components of execution, which is the scope of the project defined. The budget of that scope and the schedule and milestones all frozen. So, once you once you've got that, then you know, we we will we will absolutely hold off on variations”

Deep Yellow will only sign uranium supply contracts if prices and terms fit shareholder value requirements; the company is not rushing to lock in contracts below production-cost-sustaining prices.

“I'm not locking in contract unless they fit with what we need or the shareholder deserves.”

Spot market operators like Sprott Physical Uranium Trust cannot satisfy large inventory demand of 5 million or 4 million pound purchases at 100,000 lb/month throughput; their margins depend on sourcing supply at $80/lb and selling forward at $150-200, not bulk fulfillment.

“If Spot is to feed that big requirement, which matches their raising capability they can't do it at 100,000 lb a month. You you know what I mean? And those big lumps of 5 million, 4 million into inventory are not going to happen.”

Utilities have been 'robbing' the industry by purchasing Russian material at suppressed prices and attempting to route it through China; this practice will be stopped, forcing utilities to pay market rates for uranium security.

“These are a balanced machines these utilities and they've been, you know, robbing robbing getting cheap Russian material trying to sneak it through China now which is going to be stopped. And they got to now say we got to pay to get security of supply.”

Alligator Rivers region contains more total uranium pounds already discovered than Athabasca basin, despite only 10-15 years of concentrated exploration vs Athabasca's decades-long development.

“the Athabasca has got less pounds in it than what already has been discovered in in in in the Alligator region. With the exploration only carried out a decade and a decade and a half”

Deep Yellow team has direct Alligator Rivers experience from the late 1970s-1980s, giving it a different understanding of mineralization controls compared to Athabasca basin analogies that were misapplied to the region.

“we've worked in there my my team myself in the in the in the in the 80s in the late 70s and um and we have a a different vision of how how this mineralization is controlled in the Alligator Rivers region differently to what it is in the Athabasca”

Deep Yellow will deliver uranium production in the second half of 2026 from Tumulus project with an 18-20 month construction period, following FID (Final Investment Decision) at year-end 2024.

“I'm saying that we will be delivering uranium product in the second half of 2026. We will have a construction period of 18 to 20 months this is what we're planning.”

Deep Yellow's project financing appetite is available across funding scenarios, with lower and upper debt limit ranges that provide flexibility depending on uranium prices and project economics.

“we are looking at the project financing which is moving well and and the and there is appetite there for project financing at at at levels that we require so whatever level it is the sort of lower limit and the upper limit are completely within what we what we need under certain different scenarios”

Ranger-type deposits (dry climate, ~0.35% uranium grade, large resources, long mine life) are Borshoff's preferred conventional uranium mine model; monsoonal/sub-aqueous environments are less attractive operationally.

“Long life. Less difficult projects for me. A Ranger type operation that it was operating at about 0.35 million 0.35% uranium. Big resources. Have that project in a dry climate, not in a monsoonal climate with huge rains, or in a Canadian environment, which is really a sub sub-aqueous environment.”

Deep Yellow has shifted from ~7 institutions to ~40 institutions post-$250M capital raise, with index funds (Vanguard, State Street) entering the register; this increase in institutional diversity de-risks the company from small-investor volatility.

“from a pre-the 250 million raising, we had basically some institutions, about seven, and and basically sort of wealth wealth sort of investors or moms and dads. Now we've got about 40 institutions. Um the the index funds are coming in. So, we've got a much more mature sort of which is which is preparing us for our journey going forward.”

Deep Yellow chose Mulga Rock in Western Australia specifically because Vimy Resources performed substantial approved works during their five-year exploration license, which de-risked the project by securing environmental approval similar to how Cameco (Yeelirrie, Kintyre) and Toro (Lake Way) did.

“For us, we have an approved project. So, we have and one of the reasons why we went to Mulga Rock is that and what Vimy did extraordinarily well is that they they committed substantial works within the five-year period they had as did Cameco on on on Yeelirrie and Kintyre and as did Toro on on Lake Way. And and in that way that that that environmental approval was given. So, we saw that as as derisking the project.”

Alligator Rivers could offer potential for mine development in the early 2030s if exploration pace accelerates and the 150 million pound resource target is confirmed by end of this decade.

“and and it could offer a potential prospect for development in the early 30s”