Deep Yellow (ASX:DYL) told its shareholders on Tuesday its much-awaited African Tumas uranium project will be delayed while prices are low – and surprisingly, it’s not in deep… well, shareholders don’t seem too bothered.

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Deep Yellow shares jumped +3.7% in early trade, to 84cps, as chief John Borshoff gave a fairly long-winded chunk of commentary to chew on about how things will be okay.

“This is a deliberate strategic decision reflecting [an] experience-based approach to sustainable uranium production aimed entirely at preserving the Company’s precious resources,” Borshoff said.

He then added: “The Tumas Project is ready to take the next step but, as we have consistently stated, a healthy prevailing uranium market is a key prerequisite. The final project approval will therefore be delayed.”

In the background, the company will continue carrying out “engineering to ensure the project is ‘shovel ready'” and purchasing non-critical infrastructure assets with its A$227 million cash balance.

But the big kahuna of the project, if you will – the processing plant that will turn uranium-containing-dirt into cleaner uranium proper – is off the cards for now.

It’s the processing plant that matters here, and despite management’s reassuring commentary, the truth is the project is now in purgatory.

(To any concerned HotCopper readers, no, I’m not short-selling Deep Yellow – I am just telling it how it is.)

This also reflects the second year in a row a Final Investment Decision has been delayed for Tumas. Once called a “shorter’s nightmare,” Deep Yellow has suffered as uranium prices have since the heady days of early 2024.

“We believe our shareholders are patient,” Borshoff also added, which could perhaps feel like the company offering investors palm cards to read off.

The question, then, is when will uranium start to look exciting again?

Right now, prices are at 18-month lows.

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Given Trump appears more willing to do business with Russia, it’s possible the Biden-era Russian uranium bans which massively helped push prices to US$100/lb could fall apart – which suggests that uranium could stay where it is for quite some time.

DYL last traded at 84cps.

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