Denison Mines Corp is set to take its flagship Wheeler River project to full development, which means the first production could be expected in 2027-2028. The company, holding at least 95 percent of this project, is planning to explore uranium deposits that are high-grade with low environmental imprints using ISR mining.
Denison Mines Corp (DNN) is a uranium exploration and development company that is targeting projects in the Athabasca Basin. The Athabasca Basin in Saskatchewan, Canada is arguably, the richest uranium producer in the world. Originally from Toronto, Denison Mines Corp, an international leader in uranium mining, has been the industry’s most environmentally friendly company for the past decades. Sustainability is its core principle. The company aims to leverage advanced technologies to develop its high-grade uranium deposits, particularly through its flagship Wheeler River project.
The operations of Denison consist of investigation, estimation, and development of uranium mines, milling, and marketing of uranium concentrates. It runs the facilities for the processing of uranium ore from other mines by means of a toll milling process, like the Cigar Lake project. The majority of its income comes from the sales of the uranium that has been produced at its sites, including approx 4.8 million pounds of U3O8 from the toll milling activities in 2022. Furthermore, the company is the one that manages the mine areas and also runs environmental monitoring services to the customers.
Denison serves all types of clients, including government entities and private sector companies involved in uranium mining, and environmental management. End users are primarily utilities and energy companies requiring uranium for nuclear power generation. Working on sustainable practices and with an asset base that is strong, Denison stands ready to meet the growing demand for uranium, spurred by increasingly greater global energy needs and a transition toward low-carbon energy sources.
DNN is ready for the big win from Wheeler River, which is to become one of the largest, untouched uranium mining areas in the world. The showstopper, here, is going to be Phoenix, scheduled for production in 2027 or 2028. With high-grade uranium deposits and an eco-friendly In-Situ Recovery (ISR) mining technique, Denison sets itself up for a long-term and low-cost business to spark excitement among investors and environmentalists.
We are bullish on Denison. The company has been prudent in mitigating risks pertaining to its Wheeler River project by securing permits, conducting feasibility studies, and now preparing to start construction. With 16.5 years of mining remaining, Denison’s Phoenix site is set to boast remarkable financial gains. The ISR mining method presents cost-effective ways of ensuring the least environmental disturbance whilst production costs remain very low, giving Denison an open lead in the market.
Tech juggernauts Amazon and Alphabet are already placing their bets on nuclear energy for their AI applications, so there is room for the company to grow. Denison has perfectly positioned itself to ride this wave. In case these tech companies continue to muscle in nuclear energy, then Denison’s Phoenix project may just be the next big thing investors are waiting for.
Denison Mines Corp does not rank on our latest list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held DNN at the end of the third quarter which was 21 in the previous quarter. While we acknowledge the potential of DNN as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as DNN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
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