Deep Yellow's (ASX:DYL) dual-pillar development strategy is rational and capital-efficient, built around a sequential pipeline advancing the Tumas project in Namibia, then the Mulga Rock project in Western Australia, balancing capital deployment and bringing pounds to market progressively, Jefferies said in a Thursday note.

The firm pushed the final investment decision for the Tumas project to the second half of the year, contingent on more supportive market conditions.

First production is anticipated by the analysts to be in the fourth quarter of fiscal year FY28, assuming a 24‐month build and a two-year ramp to around 3.6 million pounds-per-annum production over an around 30‐year mine life. Updated unit costs imply all-in sustaining costs of around $45 per pound, assuming a $2.45 per pound of triuranium octoxide-equivalent byproduct credit that may be difficult to realize in current market dynamics.

Construction at the Mulga Rock project is expected to begin immediately after Tumas, in the first half of 2028.

The investment firm has an underperform rating on Deep Yellow with a raised price target to AU$2.20 per share from AU$1.85 per share.