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Denison Mines (TSE:DML)
TSX:DML

Denison Mines (DML) AI Stock Analysis

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Denison Mines

(TSX:DML)

Rating:49Neutral
Price Target:
Denison Mines' overall stock score reflects significant challenges in financial performance due to ongoing losses and cash flow inefficiencies. However, the company's strong equity position and proactive corporate events, such as advancing key projects and strengthening governance, provide a positive outlook for future strategic growth. Technical indicators suggest a cautious approach due to a lack of upward momentum. Valuation metrics indicate the stock is not currently attractive for traditional investors, as reflected by the negative P/E ratio and absence of a dividend yield.
Positive Factors
Financial Strength
Denison has one of the strongest balance sheets for funding its relatively modest capital requirements.
Industry Developments
Most recent developments have been positive for uranium, including announcements of another wave of new nuclear reactors in China and an agreement to restart Three Mile Island in the U.S.
Valuation
Denison now offers one of the most attractive P/NPV's at 0.9x with clear near-term catalysts.
Negative Factors
Project Timeline
The company targets first production in 2027/2028, which could see upside to estimates.

Denison Mines (DML) vs. iShares MSCI Canada ETF (EWC)

Denison Mines Business Overview & Revenue Model

Company DescriptionDenison Mines Corp. is a uranium exploration and development company based in Canada. It is primarily engaged in the exploration, development, and production of uranium properties in the Athabasca Basin region in Northern Saskatchewan, which is one of the most prolific uranium-producing areas in the world. Denison's core focus includes its high-grade uranium projects, especially the Wheeler River Project, which is the largest undeveloped uranium project in the eastern part of the Athabasca Basin.
How the Company Makes MoneyDenison Mines generates revenue primarily through the exploration and development of uranium properties with the goal of producing and selling uranium concentrates. While the company is in the exploration and development stage and does not currently have active mining operations, it makes money by strategically advancing its projects, increasing the value of its uranium resources, and potentially partnering or selling interests in its projects to larger uranium producers. Additionally, Denison may engage in strategic transactions such as joint ventures, asset sales, or equity financings to fund its operations and advance its projects towards production. The company is also involved in environmental services and has a revenue stream from its services segment, which provides post-closure mine care and maintenance services.

Denison Mines Financial Statement Overview

Summary
Denison Mines is facing challenges in consistent profitability and cash generation despite having a solid equity base and low leverage. The income statement highlights ongoing losses and margin pressures, while the balance sheet reflects financial stability due to strong equity. Cash flow challenges persist, indicating operational inefficiencies.
Income Statement
45
Neutral
Denison Mines has experienced volatile revenue trends, with significant fluctuations year-over-year. The gross profit margin is negative, indicating cost issues relative to revenue. Net profit margin is also negative, highlighting ongoing losses. Despite some revenue growth in the latest year, profitability remains a challenge with negative EBIT and EBITDA margins.
Balance Sheet
60
Neutral
The balance sheet shows a strong equity position with a high equity ratio, suggesting a stable financial foundation. The company has no significant debt, reflected in a zero debt-to-equity ratio, reducing leverage risk. However, the negative return on equity indicates the company is not efficiently generating returns on its equity base.
Cash Flow
40
Negative
Cash flow analysis reveals challenges with negative operating and free cash flows, indicating difficulty in generating cash from core operations. The free cash flow to net income ratio is negative, as is the operating cash flow to net income ratio, signaling inefficiencies in cash generation relative to earnings. Despite this, the company has maintained liquidity with cash reserves.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
15.05M4.02M1.85M8.97M20.00M14.42M
Gross Profit
1.24M-792.00K-2.04M3.62M7.10M3.83M
EBIT
-8.93M-63.32M-48.90M-36.51M-23.35M-12.87M
EBITDA
-15.53M-81.81M97.27M18.81M21.68M-6.82M
Net Income Common Stockholders
-91.12M90.38M14.35M18.98M-16.28M
Balance SheetCash, Cash Equivalents and Short-Term Investments
8.19M114.81M141.45M58.94M78.44M41.65M
Total Assets
300.00M663.61M726.60M515.80M510.28M320.69M
Total Debt
795.00K0.00417.00K576.00K508.00K615.00K
Net Debt
-7.39M-108.52M-130.64M-50.34M-63.49M-24.38M
Total Liabilities
89.85M99.29M84.82M79.78M113.59M93.41M
Stockholders Equity
210.15M564.32M641.78M436.02M396.69M227.28M
Cash FlowFree Cash Flow
33.32M-48.07M-33.90M-35.01M-22.48M-13.76M
Operating Cash Flow
33.40M-40.38M-30.67M-28.14M-21.25M-13.48M
Investing Cash Flow
3.04M426.00K-719.00K-6.76M-99.00M305.00K
Financing Cash Flow
19.14M15.15M111.18M20.96M159.82M30.51M

Denison Mines Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.16
Price Trends
50DMA
2.03
Positive
100DMA
2.17
Positive
200DMA
2.46
Negative
Market Momentum
MACD
0.05
Positive
RSI
52.70
Neutral
STOCH
44.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DML, the sentiment is Positive. The current price of 2.16 is below the 20-day moving average (MA) of 2.20, above the 50-day MA of 2.03, and below the 200-day MA of 2.46, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 52.70 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:DML.

Denison Mines Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSCCO
70
Outperform
$38.01B152.823.93%0.18%29.88%5.54%
TSURC
60
Neutral
$406.25M295.150.45%-47.81%-83.25%
TSEU
58
Neutral
C$534.57M-25.71%58.00%-256.97%
58
Neutral
$7.37B3.39-4.49%10.01%0.82%-49.15%
TSNXE
53
Neutral
$4.95B27.25-9.06%-197.27%
TSDML
49
Neutral
$1.94B33.39-20.00%
TSMGA
37
Underperform
C$106.87M-11.27%-485.07%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:DML
Denison Mines
2.23
-0.62
-21.75%
TSE:CCO
Cameco
90.65
18.68
25.96%
TSE:MGA
Mega Uranium
0.29
-0.05
-15.94%
TSE:NXE
NexGen Energy
9.08
-0.31
-3.30%
TSE:EU
enCore Energy
2.85
-2.69
-48.56%
TSE:URC
Uranium Royalty Corp
3.04
-0.18
-5.59%

Denison Mines Corporate Events

Financial DisclosuresRegulatory Filings and Compliance
Denison Mines Files 2024 Annual Report, Strengthening Regulatory Compliance
Positive
Mar 28, 2025

Denison Mines Corp. announced the filing of its 2024 Annual Report on Form 40-F with the U.S. Securities and Exchange Commission, which includes comprehensive financial and operational details for the year. This filing is a critical step for Denison, as it underscores the company’s ongoing commitment to transparency and regulatory compliance, potentially enhancing its credibility and attractiveness to investors and stakeholders in the uranium sector.

Executive/Board ChangesBusiness Operations and Strategy
Denison Mines Strengthens Board with Strategic Appointments
Positive
Mar 20, 2025

Denison Mines Corp. has appointed Ken Hartwick, former CEO of Ontario Power Generation, and Jinsu Baik, a senior manager from Korea Hydro Nuclear Power, to its Board of Directors. These appointments are expected to enhance the board’s expertise in nuclear power generation and support Denison’s strategic initiatives, including the execution and marketing of its Phoenix project. The changes follow the retirement of long-serving director Brian Edgar, who contributed significantly to the company’s strategic direction and governance.

Business Operations and StrategyRegulatory Filings and Compliance
Denison Mines Advances Phoenix Project Amid Strong Uranium Market
Positive
Mar 14, 2025

Denison Mines Corp. has made significant progress in advancing its Phoenix In-Situ Recovery project, with regulatory approvals potentially allowing construction to begin in early 2026 and production by 2028. The company has secured agreements with local communities, progressed engineering efforts, and is preparing for mining restarts and exploration collaborations, positioning itself well in the evolving uranium market.

Business Operations and StrategyRegulatory Filings and Compliance
Denison Mines Advances Wheeler River Project with CNSC Hearing Schedule
Positive
Feb 27, 2025

Denison Mines Corp. announced the Canadian Nuclear Safety Commission has scheduled public hearings for the Wheeler River Uranium Project, marking the final step in federal approval for the project’s Environmental Assessment and Licence. This development reduces uncertainty in the project’s timeline, allowing Denison to plan for construction of the Phoenix In-Situ Recovery project, with potential commencement in early 2026 and first production by 2028. The announcement follows key regulatory milestones achieved in 2024, indicating strong support from CNSC staff for the project’s advancement.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.