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Deep Yellow Implements Cost Efficiency Program

Deep Yellow (ASX: DYL) has taken further steps to reduce overhead costs until there are tangible signs of an improvement in sentiment, which chairman Mervyn Greene said is only a matter of time.

The reduction, which follows cuts made last year, is due to ongoing volatility in financial markets and weakness in the uranium sector.

Effective immediately, board fees and executive remuneration will be reduced by a further 5% for at least six months with a review in November while salary scales will be fixed at 2012 rates.

In addition, no STI cash bonus will be paid to managing director Greg Cochran for the 2013 financial year due to market conditions.

The reductions follow a 10% reduction in base salary, fees and group-wide salaries that was implemented in July 2012 to protect the company's cash resources.

Deep Yellow's Perth head office has been downsized to three people - Cochran, the financial controller and officer manager, and plans for an office move to smaller premises by the end of the year are well advanced.

"We have been closely monitoring the volatility in financial markets and ongoing weakness in the uranium sector and recognise that cost discipline is an essential component of optimising the company's cash position," Greene added.

Deep Yellow had in May lodged separate Environmental Scoping Reports for two of its Namibian uranium project with the Department of Environment and Tourism of Namibia.

The Environmental Scoping Reports confirm the framework and process to be undertaken for the Environmental Impact Assessment for both projects.

Impact assessments have already begun on the ground and interested and affected parties and public notifications have already been posted.

Omahola has a Resource of 48.7 million tonnes at 420 parts per million U3O8 and is located within Namibia's 'Alaskite Alley', which includes the Rossing uranium mine and Husab uranium project.

The Tumas Project consists of Zone 1 and Zone 2 Resources located in the southern and western parts of the project area.

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