Dyl going to blow today, page-16

Although tempered somewhat by what DYL said in todays quarterly......

URANIUM OUTLOOK
The long-awaited revaluation of uranium equities essentially commenced during the quarter andmore specifically from the beginning of December.

According to research by Uraniumletter International, of the 56 publicly listed uranium companiesmonitored (excluding Kazatomprom), the market capitalisation (as a collective) increased fromUS$7.3Bn (30 September 2020) to US$11.4Bn (30 December 2020), an overall increase of 56%.

The top 20 listed companies (of which Deep Yellow is part), where 86% of the market capitalisationvalue resides (excluding Kazatomprom), experienced an overall increase of 60% from a base ofUS$6.6Bn (30 September 2020) to US$10.5Bn (30 December 2020). Importantly, it should behighlighted that these gains have continued into January 2021.

Looking at the underlying uranium supply/demand dynamics, there is little to suggest why thisrevival has occurred. The uranium price has remained largely static during this period, maintaininga narrow range of US$29.20/lb to US$30.75/lb (currently at US$30.00/lb) and the significantincrease in market capitalisation is not being affected nor has affected the lacklustre performanceof the price of uranium.

Nevertheless, this readjustment of value is regarded as a positive and essential development,indicating that the sentiment is positively changing for the uranium sector and that some of therevaluation has been justified in the eyes of the investor world, independent of uranium priceincrease and is similar to what is occurring in the lithium sector where comparable dynamics areoccurring.

The medium-to-long term uranium outlook remains extremely positive, even though nuclearutilities remain complacent regarding the looming supply shortage predicted to occur from2023/24. This shortage will likely be exacerbated by a lack of incentive pricing to encouragedevelopment of new mines and a sector that has been diminished and ravaged in capability bythe consequences of the downturn caused by Fukushima.


GLTAH.