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Denison Mines (NYSE:DNN) +5.6% in Friday’s trading after reporting better than expected FY 2023 GAAP earnings of C$0.11/share, its highest annual EPS since 2007 and above C$0.09 analyst consensus estimate, driven by a $134.2M fair value gain on the company’s physical uranium holdings.
Denison (DNN) said the evolution of the uranium market in 2023 boosted its balance sheet, as uranium oxide prices climbed from $48/lb at the start of 2023 to $91/lb at year-end.
The company said in Q4 it sold 200K lbs U3O8 at an average selling price of US$73.38/lb U3O8 for a US$8.8M realized gain on sale; at year-end 2023, the company’s remaining uranium portfolio increased in value by 228% to US$91/lb U3O8 for an aggregate value of US$209.3M.
Denison (DNN) said the feasibility study completed in 2023 “cemented Phoenix’s position as a globally leading uranium development project,” and results from an updated pre-feasibility study for the Gryphon deposit, completed as part of a newly issued technical report for the Wheeler River property, “demonstrate the significant potential additional leverage that comes from Denison’s diversified portfolio of projects.”
The Phoenix feasibility study showed a robust base case pre-tax internal rate of return of 105.9%.
