Denison Mines

Denison Mines (TSX:DML) & (FSE:IUQ)

Share price: CAD 13.25 (mar 16, 2007)
Number of shares: 188 million
Market cap: CAD 2,491 million
Resources: 59.6 mio. lb (historical, inferred & probable)
Price per pund U3O8: USD 35.61
Estimated production start: 1 mio. lb 2007
Estimated production output in 2010: 5 mio. lb
Estimated revenue 2010 (U3O8 = $91) : USD 455 mio.
Estimated production costs per lb: $ 14
Estimated profit 2010: CAD 451.9 mio (USD 385 mio.)
Price target 2010 at p/e 10: CAD 22,26 (203 mio shares)
12 month price target: CAD 17 (upside 28.3 %)

Denison Mines corporate profile:

Denison Mines Corp. (DML-TSX) is a diversified, growth-oriented, intermediate uranium producer. With 5 active uranium mining projects in North America (3 in the U.S. and 2 in Canada), Denison expects estimated production of 5 million lbs of U₃O₈ by 2010. The company was formed through the combination of the business and operations of Denison Mines Inc. and International Uranium Corporation on December 1, 2006.

Denison’s assets include an interest in 2 of the 4 licensed and operating uranium mills in North America, with its 100% ownership of the White Mesa mill in Utah and its 22.5% ownership of the McClean Lake mill in Saskatchewan. Both mills are fully permitted, operating and undergoing expansion. The share of the combined licensed annual milling capacity is expected to be 10.7 million lbs in 2007.

Denison enjoys a global portfolio of world-class exploration projects, including properties in close proximity to the company’s mills in the Athabasca Basin in Saskatchewan and in the Colorado Plateau, Henry Mountain and Arizona Strip regions of the Southwestern United States. Denison also has high potential exploration properties in Mongolia and, indirectly through its investments, in Australia.

Denison is the manager of Uranium Participation Corporation (U-T), a publicly traded company which invests in uranium oxide in concentrates and uranium hexafluoride. Denison is also engaged in mine decommissioning and environmental services through its Denison Environmental Services (DES) division.