Denison Mines (DNN) Climbs 5.45% as Firm Stands to Benefit From Uranium Supply Cut

We recently published 10 Stocks Skyrocket While Wall Street Sinks; 5 Quietly Hit New Record Highs. Denison Mines Corp. (NYSEAmerican:DNN) is one of the top performers on Friday.

Denison Mines saw its share prices grow by 5.45 percent on Friday to close at $2.32 apiece, as investors continued to digest optimism over an expected production cut from the world’s largest uranium producer.

Last week, Kazakhstan-based Kazatomprom said that it would scale back production by 10 percent next year to 29,697 tU from 32,777 tU, as it aims to make good on its promise of prioritizing market balance and profitability.

The company said the majority of the decrease will come from its Budenovskoye operations.

In the broader front, Kazatomprom’s production cutback could benefit small players such as Denison Mines Corp. (NYSEAmerican:DNN), as the move would significantly tighten supply and raise uranium prices, and potentially increase profit margins.

In other news, Denison Mines Corp. (NYSEAmerican:DNN) announced that it successfully raised $345 million in fresh funds through the issuance of convertible senior unsecured notes. The notes have a tenor of six years and will mature on September 15, 2031, unless converted, repurchased, or redeemed.

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Disclosure: None. This article is originally published at Insider Monkey.