Shareholders Of Fission Uranium Should Vote Against Merger With Denison Mines
The Critical Investor • 36 Comments
The Critical Investor • 36 Comments
Time To Take A Quick Look At Denison Mines
Wed, Mar. 9, 5:06 PM
Thu, Jan. 28, 4:43 PM
- Uranium spot prices likely will remain under pressure for the rest of the decade because of high inventory levels, recycling of already-mined uranium and the slow restart of Japan's nuclear reactors, Fitch Ratings forecasts.
- An extended period of oversupply has contributed to a major build-up in utilities' uranium stockpiles, with European utilities having enough fuel to last three years and Japanese utilities enough for 4-5 years, which will maintain pressure on prices as demand slowly recovers, Fitch says.
- Relevant stocks: CCJ, DNN, LEU, URRE, UEC, URG, UUUU.
- ETFs: URA, NLR
Nov. 5, 2015, 11:21 PM
- Denison Mines (NYSEMKT:DNN): Q3 EPS of -$0.04 misses by $0.03.
- Revenue of $3.53M (+50.2% Y/Y) beats by $0.89M.
Oct. 28, 2015, 4:59 PM
- A dispute between Fission Uranium (OTCQX:FCUUF) and a retail shareholder group has escalated to the point where the shareholders are working on a plan to launch a proxy fight and kick out the company’s board, Financial Post reports.
- The dispute that was brewing for months went public this week as Fission’s board adopted a bylaw that forces the group to give the company 30 days notice if it wants to name new directors at the Dec. 15 annual meeting.
- The group believes the decision to pursue a merger with Denison Mines (NYSEMKT:DNN) is evidence the board is not acting in the best interests of the company and that shareholder value is at risk.
Oct. 13, 2015, 8:58 AM
- Denison Mines (NYSEMKT:DNN) and Fission Uranium (OTCQX:FCUUF) say they have terminated their C$483M merger agreement after the deal failed to receive the necessary approval of two-thirds of Fission's shareholders.
- At the deadline for submission of proxies on Friday, DNN's shareholders had strongly supported the deal.
- DNN had sought to acquire Fission to expand its presence in the Athabasca mining region in Saskatchewan.
Aug. 10, 2015, 11:58 AM
- Japan is rejoining the countries using atomic power after the Fukushima nuclear disaster more than four years ago, as Kyushu Electric Power says it will begin bringing online the No. 1 reactor at its Sendai facility on Aug. 11, start power generation as early as Aug. 14 and return it to normal operations next month.
- The move is an important de-risking event for the uranium market, says BMO Capital analyst Edward Sterck: While "Japanese utilities are sitting on significant excess inventories, the fact that these will now start to be consumed [in Japan] should ease fears of sales from inventory,” and it shows there is a regulatory restart process in Japan that actually works, which clears the way for more.
- Relevant stocks: CCJ +4.1%, DNN +5.1%, LEU -1.3%, URRE +5.7%, UEC -1.5%, URG -2.7%, UUUU +8%.
- ETFs: URA, NLR
Aug. 5, 2015, 6:08 PM
- Denison Mines (NYSEMKT:DNN): 1H EPS of -$0.03.
- Revenue of $5.3M (+17.8% Y/Y)
Jul. 6, 2015, 5:25 PM
- Denison Mining (NYSEMKT:DNN) agrees to acquire Fission Uranium (OTCQX:FCUUF) for ~C$483M ($382M) to expand its presence in the Athabasca mining region in Saskatchewan.
- DNN says the deal that implies a price per Fission common share of C$1.25, representing a ~18% premium to the 30-day volume weighted average price of Fission's shares.
- Fission's 100%-owned Patterson Lake South Project and DNN's 60%-owned Wheeler River Project, both located in the Athabasca Basin, will headline the asset portfolio of the combined company.
- Dev Randhawa, Fission’s chairman and CEO, will be CEO of the combined company.
Jun. 22, 2015, 12:59 PM
- Canada's government says it has approved an application for Australia’s Paladin Energy (OTCPK:PALAF +4%) to construct its proposed Michelin uranium mine in the provinces of Newfoundland and Labrador, making a rare exception to its policy that requires uranium mines to be majority owned by Canadian companies.
- Analysts say the approval may open the door to other foreign investors seeking majority ownership of Canadian uranium mines, and could encourage investment by two Chinese utilities that have said in recent months they are looking at Canada for acquisitions.
- Canadian companies that own non-producing uranium assets in the country include Cameco (CCJ +0.9%), Fission Uranium (OTCQX:FCUUF +2.1%) and Denison Mines (DNN -1.1%).
May 26, 2015, 12:49 PM
- China's government is said to be on the hunt for uranium acquisitions with large deposits and low costs, and Cantor Fitzgerald analyst Rob Chang says four projects in Canada could meet its criteria.
- Chang's deposits with the potential to attract immediate Chinese interest are Rio Tinto's (NYSE:RIO) Roughrider, Cameco's (NYSE:CCJ) Millennium, Fission Uranium's (OTCQX:FCUUF) Patterson Lake South and UEX's (OTCPK:UEXCF) Shea Creek; Denison Mines' (NYSEMKT:DNN) Wheeler River project could get attention for the long term.
- China National Nuclear Power Corp. is expected to raise as much as $2.16B in what is set to be China’s largest domestic IPO in five years.
Apr. 22, 2015, 12:30 PM
- Uranium names are showing notable strength today following yesterday's ruling in Japan that will allow the Sendai nuclear plant to reopen, which would be the first plant to be reopened since the Fukushima disaster: CCJ +6.8%, DNN +5.6%, LEU +10.3%, URRE +4.5%, UEC +5%, URZ +2.6%, URG +1%, UUUU +1.7%.
- The news is positive for the nuclear industry to the extent that authorities in Japan have not given up on the energy source despite Fukushima.
- China is pushing for more nuclear power, with the government reportedly approving eight new nuclear power projects.
- A MarketWatch article paints a bright picture of the nuclear industry, with uranium prices rising ~35% since last summer and improving public opinion; "China and India believe that the upside from the clean energy from nuclear far outweighs the downside risks of sticking to dirty coal,” says GoldStockTrades.com editorJeb Handwerger.
- Last week, CCJ signed a deal with India to provide 7.1M lbs. of uranium concentrate over the next five years.
- ETFs: URA, NLR
Mar. 5, 2015, 5:06 PM
- Denison Mines (NYSEMKT:DNN): Q4 EPS of -$0.01 in-line.
- Revenue of $2.74M (+13.7% Y/Y)
Jan. 13, 2015, 4:57 PM
- Denison Mines (NYSEMKT:DNN) says it has started its 2015 uranium exploration programs in the Athabasca Basin, where it will manage or participate in 19 exploration programs, including 14 drilling programs, with Wheeler River continuing as the primary focus.
- DNN plans a 37K-meter winter and summer drill program plus geophysical surveys at its 60%-owned Wheeler River project; DNN's share of the total budget for all programs is C$15.8M.
- Also, DNN appoints David Cates as President and CFO.
Dec. 9, 2014, 5:58 PM
- Energy stocks dominate Raymond James' new list of top picks among Canadian smallcaps, led by Denison Mines (NYSEMKT:DNN), which the firm sees surging ~70% in the next 12 months.
- DNN is viewed as one of the world's premier uranium companies, "a well-run company in a strong position to capitalize on likely significant appreciation in both the underlying commodity price and sector sentiment in 2015."
- The firm also likes Gildan Activewar (NYSE:GIL), which has changed pricing and accelerated its capex program in response to volatile cotton prices in the last year.
- Other favorites include OTCPK:DRGDF, OTCPK:LUNMF, OTCPK:MEGEF, MEOH.
Nov. 24, 2014, 2:37 PM
- Uranium prices have reversed recent gains, plunging $6/lb. (~13.5%) to $38 over the past week in their biggest weekly drop since 1996.
- TD Securities' Greg Barnes thinks the current volatility is more reflective of trader positioning in a thinly traded market than utilities exhibiting strong fundamental demand; the analyst is not convinced that the rapid drop will be enough to trigger a wave of buying by utilities.
- Uranium names are broadly lower today: CCJ -3%, DNN -3.8%, UEC -1.6%, URG -5.7%, URZ -4.4%, UUUU -1.5%, URRE -0.4%.
- ETFs: URA, NLR, NUCL
- Earlier: Uranium spot prices could pass $50/lb. in next 12 months, analyst says
Nov. 10, 2014, 2:41 PM
- Uranium names are moving briskly higher after H.C. Wainwright analyst Jeffrey Wright says uranium spot prices could rise above $50/lb. in the next year, as a positive decision on the restart of two Japanese nuclear reactors could alleviate psychological pressures on the uranium market.
- The firm maintains Buy ratings for Uranium Energy (UEC +9.3%), Uranerz Energy (URZ +14.7%) and Ur-energy (URG +8.6%).
- Also higher: CCJ +2.9%, DNN +7.1%, URRE +30.9%, UUUU +10%.
- ETFs: URA, NLR, NUCL
Denison Mines Corp. is a uranium exploration and development company with interests in exploration and development projects in Canada, Zambia and Namibia. The company was founded on May 9, 1997 and is headquartered in Toronto, Canada.
Sector: Basic Materials
Industry: Industrial Metals & Minerals
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