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Denison Mines Corp: Financial Analysis

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Denison Mines Corp.
Denison Mines Corp. reported its third quarter 2015 results on 5th November. The company earned revenues of $ 3,526 thousand during the third quarter this year compared to $ 2,351 thousand during the same period last year. Revenue from processing Cigar Lake ore at the McClean Lake mill which is under a toll mining agreement was $ 982,000. Revenue from Denison Environmental Services (DES) totalled $ 2,113,000. Revenue from the Company's management contract with UPC totalled $ 431,000 during the three month period ended 30th September 2015. Net loss during the quarter was $ 21,432 thousand on an unadjusted basis while last year it was as low as $ 2,820 thousand for the same period. The McClean Lake mill, one of the largest …show more content…

Denison Mines Corp. has discovered that its 60 % owned Wheeler River property in Northern Saskatchewan, has a higher potential than it was known to have earlier. Within this property, the Phoenix deposit already has a 70.2 million pounds U3O8 of indicated reserve. Now the new found inferred mineral resources of 43.0 million pounds U3O8 at the Gryphon Deposit means a significant increase in the potential of the Wheeler River property for Denison Mines. This finding makes Phoenix and Gryphon the most valuable asset for the company when taken together as it makes the property one of the largest sized resources as well as a high grade resource at the same time. David Cates, President and CEO of Denison said, “… the project has grown significantly in size and now represents one of the largest and highest grade undeveloped projects in the Athabasca Basin region.” The Wheeler River project has one more advantage besides its large size and the good quality ore. It is situated near the provincial power grid, provincial highways, air transportation, and multiple uranium processing facilities, including the 22.5 % Denison owned McClean Lake mill. Thus it is also going to save a lot of money on logistics as well.
Hope from …show more content…

Further, the recent Fukushima incident has made the clearance of nuclear facilities an even slower process than earlier due to more stringent norms applied by the regulators. Therefore, the graph of uranium miners like Denison is going to go up from here on but the slope of the graph will heavily depend upon the pace of the various nuclear plants coming online. Still, its portfolio is not the most attractive in this sector and that puts it far from being the

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