Thursday, 19 April 2012

Denison Mines Corporation (AMEX:DNN)

DNN is a uranium mining company with properties in the US, Canada, Zambia and Mongolia. The uranium properties are at various stages of exploration, development and production.

Uranium Properties
Historically, it has produced and sold 4.5 million lbs of uranium.

In its reserves are:

Measured uranium: 2 million lbs
Indicated uranium: 70.2 million lbs
Inferred uranium:  65 million lbs

Sales projected for 2012:
U3O8 - 1.6 million lbs
(730,000 lbs at long term contract price of $62/lb)
(870,000 lbs at spot price, currently at $51.25/lb)

V2O5 - 0.5 million lbs

Current spot prices
U3O8 $51.25/lb
V2O5 $5.6/lb

Outstanding shares: 384.7 million
Current share price: $1.58 (updated as of 10 May 2012)
FY2011 EPS: -19 cents
FY2011 Book Value $1.18
1Q2012 EPS:  -14 cents   (updated on 10 May 2012)

Company website:
Company presentation on Feb 26 2012:

On 16 Apr 2012, DNN announced (link) it has reached agreement with Energy Fuels (TSX:EFR) to sell off its US assets to EFR in exchange for 425,441,494 new shares of EFR.  Subject to approval from relevant parties, when the agreement is completed, shareholders of DNN will receive 1.106 shares of EFR for every share of DNN.

Basically, DNN will focus on exploration and development in Canada, Zambia and Mongolia while EFR becomes a uranium developer and producer in US

The market took the news positively and shares of both DNN and EFR rose for 3 consecutive days.

Chart forDenison Mines Corp. (DNN)

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