Deep Yellow: 4Q26 result – Funding remains the precursor to FID

Research evidence excerpt

Deep Yellow: 4Q26 result – Funding remains the precursor to FID

J P M O R G A N Asia Pacific Equity Research

28 July 2026

Deep Yellow Neutral

DYL.AX, DYL AU

4Q26 result – Funding remains the precursor to FID Price (27 Jul 26):A$1.35

▼Price Target (Jun-27):A$1.35

Prior (Jun-27):A$1.55

Key takeaways from the JunQ26 result: (1) Closing cash marginally weaker

than JPMe (A$160m vs A$173m) reflecting higher investing cash outflows. (2) Australia

FID targeted for DecQ (unchanged), albeit remains subject to market conditions Australia Metals & Mining

(uranium pricing, Middle East volatility easing, etc.) and an appropriate financing AC Branko Skocic

package being secured. (3) No major project updates provided with near-term (61-3) 9633-4069

capex (~A$20m JPMe 1H FY27) primarily reflecting the remaining spend on the branko.skocic@jpmorgan.com

civils contract. We retain our Neutral rating, with our Jun-27 PT falling ~13%, J.P. Morgan Securities Australia Limited

to A$1.35/sh on more conservative project capex / schedule assumptions partially Lyndon Fagan

offset by a lower WACC of 8.4% (from 9.5%). (61-2) 9003-8648

lyndon.fagan@jpmorgan.com

• We make adjustments to our Tumas model to better reflect the current J.P. Morgan Securities Australia Limited

FID timeline. We delay first construction until 1Q CY27 and model a 2.5-year Jonathon Sharp

construction timeline (i.e. +6-months vs scope) with first production in 1Q (61 2) 9003-8312

FY30. We lift our pre-production capex assumption by ~7% to ~US$615m to jonathon.sharp@jpmorgan.com

J.P. Morgan Securities Australia Limited

reflect the delay to schedule / expected inflationary pressures with our estimate

sitting ~30% ahead of the 2025 DFS (US$474m, real). Devwrat Vegad

(91-22) 6157-3608

• We retain our Neutral recommendation.