Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside* |
|---|---|---|---|---|---|---|---|
| 17 Apr, 25 | DNN | Buy | USD 1.33 | USD 1.39 | USD 1.42 | Same day | 6.8% |
*Potential Upside (%) indicates the expected percentage increase from the Entry Price to the Target 2 Price.
Data Powered by EOD Historical Data (“EODHD”).
Denison Mines Corp. operates as a uranium exploration and development company in Canada. Its flagship project is the 95% interest owned Wheeler River uranium project covering an area of approximately 300,000 hectares located in the Athabasca Basin region in northern Saskatchewan. The company was formerly known as International Uranium Corporation and changed its name to Denison Mines Corp. in December 2006. Denison Mines Corp. was incorporated in 1954 and is headquartered in Toronto, Canada.
Increased Long-Term Uranium Price Benchmark: The uranium market saw strong support for long-term contracts, with UxC’s long-term price indicator increasing by 16%, from US$68.00/lb to US$79.00/lb U₃O₈ in 2024, directly benefiting Denison’s project economics and future revenue potential
Strong Progress Toward Production: Denison achieved 65% completion of total engineering design for its flagship Phoenix In-Situ Recovery (ISR) uranium project by the end of 2024. This milestone supports its goal of achieving first production by H1 2028, aligning with its long-term strategic roadmap
Concentration of Ownership Risk: Through recent transactions, Denison acquired ~19.13% ownership in Foremost Clean Energy and ~19.95% in Cosa Resources, increasing its exposure to equity market fluctuations and performance risks tied to non-operated exploration entities
High Capital Commitment Required: Denison plans to purchase over $60 million in additional equipment as part of initial capital expenditures for Phoenix, representing a substantial outlay ahead of final investment decision and production, thus placing pressure on capital efficiency and cash flow
Denison’s investment viability is significantly exposed to the timely receipt of regulatory approvals for the Phoenix project, without which its construction, production, and revenue generation timelines may be materially delayed
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 1.33 | 1.27 | 1.39 | 1.42 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Advancement of the Phoenix ISR Project Regulatory Process
In 2024, Denison Mines Corp. achieved significant milestones in advancing the regulatory approval process for its flagship Phoenix In-Situ Recovery (ISR) uranium project. Key accomplishments included the completion of the technical review phase of the federal Environmental Assessment (EA), acceptance by the Canadian Nuclear Safety Commission (CNSC) of the final Environmental Impact Statement (EIS), and the sufficiency determination of the company’s application for a uranium mine and mill license. These milestones paved the way for a scheduled two-part public hearing in late 2025, the final step toward federal project approval.
Progress Toward Final Investment Decision and Engineering Completion
The company made considerable progress in engineering efforts related to the Phoenix ISR project. By year-end, approximately 65% of the total engineering design had been completed. A significant contract valued at approximately $16 million was awarded to Wood Canada Limited to carry out detailed engineering work, expected to conclude by Q3 2025. This progress aligns with Denison's strategic timeline targeting a Final Investment Decision (FID) in early 2026 and initial production in the first half of 2028.
Strengthening Indigenous and Community Partnerships
Denison secured strong local support for the Wheeler River project through multiple agreements. These included a Mutual Benefits Agreement with Kineepik Métis Local #9 and a Community Benefit Agreement with the Village of Pinehouse Lake. Additionally, the company entered into a Sustainable Communities Investment Agreement with several northern Saskatchewan municipalities. These agreements ensure consent and collaboration for the project’s development while supporting local economic, educational, and environmental initiatives.
Strategic Progress on Other Core and Non-Core Assets
Beyond Wheeler River, Denison advanced other assets including the McClean Lake and Midwest joint ventures with Orano Canada. At McClean Lake, preparations continued for the restart of mining operations using the patented SABRE method, set to commence in 2025. At the Midwest project, Denison completed its first ISR field test program, validating critical hydrogeological and metallurgical assumptions for future ISR mining.
Portfolio Optimization and Exploration Partnerships
Denison took significant steps to optimize its exploration portfolio through two transactions. The company granted Foremost Clean Energy an option to acquire up to 70% of its interest in 10 non-core uranium exploration properties, potentially worth up to $30 million in combined cash, shares, and exploration spending. Denison also formed joint ventures with Cosa Resources, resulting in Denison receiving equity and exploration commitments worth approximately $8.75 million and becoming Cosa’s largest shareholder with a ~19.95% stake.
Governance Developments and Strategic Equipment Acquisition
In May 2024, Denison appointed Ms. Jennifer Traub as Chair of the Board, succeeding Mr. Ron Hochstein. Ms. Traub’s expertise in securities and mining law is expected to strengthen governance oversight. Additionally, Denison expanded its technical capabilities with the acquisition of MaxPERF Tool Systems, further securing its position as a leader in ISR mining technology in Saskatchewan through a 10-year exclusive collaboration agreement with Penetrators Canada Inc.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given to Denison Mines Corp (NYSE: DNN) at the closing market price of USD 1.33, as on April 16, 2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Energy Industry: Uranium
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| DNN Denison Mines Corp |
0.08 5.52% | 1.53 | 34.60 | - | 143.76 | 3.70 | 137.26 | 23.16 |
| CCJ Cameco Corp |
0.56 1.07% | 52.96 | 125.05 | 57.80 | 6.80 | 4.81 | 9.68 | 41.12 |
| NATKY JSC National Atomic Company Kazatomprom |
- -% | 37.50 | 14.26 | 15.75 | 0.0096 | 3.56 | 0.0093 | 0.02 |
| SRUUF Sprott Physical Uranium Trust |
0.11 0.72% | 15.49 | 25.19 | 13.00 | 636.01 | 1.79 | 1968.60 | -177.8571 |
| NXE NexGen Energy Ltd. |
0.20 3.70% | 5.61 | - | - | - | 7.30 | -31.2142 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is April 16,2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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