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Highlights

  • In Q1 2024, DML reported revenues of CAD 0.83 million
  • Despite higher revenue, DML’s losses before taxes for the period reached CAD 19.90 million, due to heightened operating losses and the company's equity share of losses from joint ventures
  • The company had a higher current ratio of 6.68x and a lower debt-to-equity ratio of 0.00x in the quarter, compared to the industry median of 1.16x and 0.39x, respectively

Denison Mines Corp (TSX: DML) is a Canadian uranium exploration, development, and production firm. It is centered on the Athabasca Basin area of northern Saskatchewan. It has a market capitalisation of CAD 2.56bn.

In Q1 2024, the company reported revenues of CAD 0.83 million, attributed to the McClean Lake mill processing 4.2 million pounds of U3O8, up from 3.8 million pounds in the pcp. Despite higher revenues, total expenses surged to CAD 21.00 million in the quarter, compared to CAD 0.60 million in pcp. This increase was primarily driven by elevated exploration and evaluation expenses, along with other costs contributing to the overall loss.

Consequently, losses before taxes for the period reached CAD 19.90 million, a substantial increase from CAD 3.33 million in pcp, largely due to heightened operating losses and the company's equity share of losses from joint ventures. As a result, the company reported a net loss of CAD 19.88 million in Q1 2024.

On a positive note, the company had a higher current ratio of 6.68x and a lower debt-to-equity ratio of 0.00x in the quarter, compared to the industry median of 1.16x and 0.39x, respectively.

Recent business update

In May 2024, the DML announced its acquisition of fixed and mobile MaxPERF Tool Systems from Penetrators Canada Inc. These systems have proven successful in multiple deployments as a means of enhancing permeability in ISR field studies for the company's potential ISR mining projects, notably at Phoenix.

Top 10 shareholders

DML’s top 10 shareholders together constitute ~35.86% of the total shareholding. Alps Advisors, Inc. and Sprott Asset Management LP hold maximum stake in the company at ~6.81% and 6.68%, respectively.

 

Stock information

DML's stock has experienced a gain of approximately 3.61% in the past week and a decline of about 11.14% over the last month. Furthermore, it is currently trading above its average 52-week high of CAD 3.37 and its 52-week low of CAD 1.54, presenting a favorable opportunity to capitalize on the trend.

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 July 3, 2024. The reference data in this report has been partly sourced from EODHD/Others.