Uranium exploration company Deep Yellow has cut jobs and reduced salaries by five per cent as it ramps up steps to reduce overhead costs, blaming the move on the weakness in the uranium sector.
The company announced board fees and executive salaries would be reduced by five per cent for at least six months, with salary scales to remain fixed at 2013 rates.
The company also said its Perth office had reduced staff to just three, comprising the managing director, financial controller and office manager.
Deep Yellow is said it is also planning to move to a smaller office by the end of the year.
The latest pay cuts follow a ten per cent reduction in base salary and fees and group-wide salary freezes in July 2012.
Deep Yellow’s chairman Mervyn Greene said the steps to reduce overheads costs was due to ongoing volatility in financial markets and a weakness in the uranium market.
"Having already taken significant steps last year to reduce corporate overheads it is prudent to implement further reductions until there are tangible signs of an improvement in sentiment, which we believe is only a matter of time,” he said.
“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.”
Deep Yellow's flagship asset is the Omahola uranium project in Namibia, which is at pre-feasibility stage. It holds a resource of 48.7 million tonnes at 420 parts per million for 45.1 million pounds of uranium oxide from three hard rock deposits.
In Australia the company owns the Napperby Uranium project in the Northern Territory as well as exploration tenements in Queensland.