The Deep Yellow Limited (ASX: DYL) share price has ended its miraculous run today.
Shares in the uranium explorer have tanked 18% in today's session.
Let's take a look at why investors are dumping their shares in Deep Yellow.
Image source: Getty Images
Why is Deep Yellow tanking?
Deep Yellow has not released any price-sensitive news today that could explain why its shares are tanking.
As a result, shares in the uranium explorer have been on the receiving end of general weakness in the broader uranium sector.
Last Friday, the Global X Uranium ETF (NYSE: URA) tumbled more than 7.5%.
The fund invests in a broad range of companies engaged in uranium mining, including Deep Yellow.
As a result, most uranium players on the ASX, including Deep Yellow, have been deep in the red today.
What's been fuelling the uranium sector?
Before Friday's pullback, spot prices for uranium rallied 60% over the past month to hit 9-year highs.
The spot uranium price touched $50 last week for the first time since 2012.
The driving force behind the resurgence in the uranium sector has been aggressive buying from the world's largest uranium fund, Sprott Physical Uranium Trust (TSE: U.U).
This euphoric price action was reflected in the Deep Yellow share price, which hit a record high of $1.37 last week.
Snapshot of the Deep Yellow share price
Deep Yellow explores uranium mineral properties and has pre-development activities in Namibia and the states and territories of Australia.
The company has various exploration prospects, including its cornerstone Tumas Project in Namibia.
Deep Yellow recently completed drilling at its Tumas 1 East site. The company reported an impressive conversion rate of inferred mineral resources to indicated mineral resources of 102%.
On the back of a surging uranium spot price, shares in Deep Yellow bordered on vertical last month.
Upon closing Friday's session at $1.37, Deep Yellow shares had surged more than 72% since the start of September.
The uranium explorer has given back much of those gains, tanking more than 18% in today's session.
At the time of writing, the Deep Yellow share price is trading near its intra-day low of $1.13.
