Denison Mines: The Strong Feasibility Study Confirms The Attractive Valuation

Summary

  • The feasibility study for Phoenix and the updated pre-feasibility study for Gryphon confirmed the very low operating costs for the projects.
  • The combined net asset value for all of Denison's projects is around $2B, while the market cap of the company is only about half that amount.
  • So, the valuation is attractive following the updated figures now in June 2023.
  • This idea was discussed in more depth with members of my private investing community, Off The Beaten Path. Learn More »

Fuel

Liens

Investment Thesis

Denison Mines (NYSE:DNN) did last month release a very strong feasibility study ("FS") on Phoenix and an updated pre-feasibility study ("PFS") on Gryphon, which are both part of the 95% ownership of the Wheeler River project. Phoenix is the core ISR asset

If you like this article and is interested in more frequent analysis of my holding companies, real-time notifications on portfolio changes, together with macro and industry analysis. I would encourage you to have a look at my investing group, Off The Beaten Path.

I primarily invest in turnarounds in natural resource industries, where I have a typical holding period of 1-3 years. Focusing on value offers good downside protection and can still provide great upside participation.  

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This article was written by

5.09K Followers

Bang for the Buck has a Bsc and Msc in Financial Economics, manages a small investment company, and runs the investing group Off The Beaten Path. He primarily invests in turnaround stories and is currently focused on natural resource industries due to monetary and fiscal policies together with underinvestments and very attractive valuations.

The investing group focuses on companies with quality characteristics that are trading at depressed valuations, which allows investors to participate in the upside of natural resource investing, without experiencing the more extreme drawdowns, that are otherwise so prevalent in natural resource investing. Learn more

Analyst’s Disclosure:I/we have a beneficial long position in the shares of DNN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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