Deep Yellow (ASX:DYL) said that final investment approval for its Tumas uranium project in Namibia will be delayed until uranium prices rise to levels that support new production, according to a Tuesday filing with the Australian bourse.

The company said the uranium market remains "essentially broken" after years of underinvestment and low prices, with current levels insufficient to support new supply.

While the Tumas project is viable at present prices, the company warned of worsening supply shortages and reaffirmed it will wait for stronger pricing before proceeding, the filing said.

The company noted that limited greenfield uranium projects are expected to come online over the next decade, making new supply "virtually impossible" under current conditions.

Deep Yellow will progress early works and engineering but delay major spending, including plant construction, the company added.

Shares of the company fell almost 8% in recent Tuesday trade.