Uranium developer Deep Yellow Ltd is bracing for a heated annual general meeting today as several of its largest shareholders unite to demand transparency following the abrupt departure of managing director John Borshoff.
Shareholder Alliance Forms Ahead of Critical Meeting
Major investors Paradice Investment Management, Soul Patts and MacMillan Super Fund submitted a formal co-operation agreement to the Australian Securities Exchange on Thursday, confirming they would "act in concert" in pushing for their own extraordinary general meeting resolution. While the specific details of their proposed resolution remain undisclosed, the move signals significant discontent among Deep Yellow's most powerful stakeholders.
The company's largest shareholder, Paradice Investment Management, is understood to be particularly dissatisfied with the handling of Mr Borshoff's exit on October 20. Considered a stalwart of the uranium industry, his departure sent shockwaves through the company and market alike.
Market Turbulence and Leadership Void
Deep Yellow shares plummeted as much as 20 percent in the week following Mr Borshoff's departure, though they experienced a notable rally on Thursday after news of the shareholder alliance emerged. The company's market announcement provided minimal explanation for the leadership change, merely acknowledging Mr Borshoff's "five decades of contribution to the global uranium industry" and confirming he would remain as an adviser until month's end.
The sudden exit apparently caught even those close to the company by surprise, leaving a significant leadership vacuum. With no clear successor identified, chief financial officer Craig Barnes has stepped in as interim CEO while former Rio Tinto executive Chris Salisbury assumes the role of temporary executive chair to support the transition.
Critical Projects and Broader Industry Context
The leadership crisis comes at a pivotal moment for Deep Yellow as it works to advance its key uranium projects. The West Perth-based company is focused on bringing the Tumas project into production, though a final investment decision on the mine was deferred in April this year. Developing Tumas is expected to require an initial investment of $750 million with projected future cash flows of $912 million.
Deep Yellow also controls Mulga Rock, a development in the Goldfields that represents the only uranium project in Western Australia with State Ministerial approval, despite facing considerable opposition from conservation groups. The company inherited this project through its merger with Vimy Resources in March 2022.
Today's meeting will also address whether Mr Borshoff, who owned a 1.93 percent stake in the company according to the latest annual report, should receive up to 842,476 loan shares.
The developments occur against a backdrop of growing calls for Western Australia to reconsider its effective ban on uranium mining, with nuclear proponents seeing significant opportunities in supplying new plants globally.
