Denison Mines Corp. (DNN), a uranium exploration and development company, has seen a decline of 6.83% in premarket trading session. As a result, DNN stock is changing hands at $1.50 at the time of this writing. On Friday, DNN stock closed the day at $1.61 after declining by 5.29% in the regular trading session. The reason for this decline seems to be the repayment of the loan by UEX.
Repayment of loan
On Friday, DNN announced that UEX Corporation had repaid the interest free 90 day term loan. The loan was provided by DNN to UEX in connection with UEXs purchase of JCU (Canada) Exploration Company, Limited. The company said that on the transfer of half of the shares (50%) in JCU from UEX to DNN, $20.5 million of the amount drawn under the term loan was deemed repaid by UEX. The company said that the balance of the term loan of $20.45 million was repaid in cash by UEX on Friday. Denison agreed to release its security for the term loan, which included a pledge of all JCU shares owned by UEX. David Cates, CEO of Denison, commented that the company congratulates UEX on their recent financing and repayment of term loan.
Q2 2021 financial results
On the 5th of August, DNN reported the financial results for the second quarter of the fiscal year 2021, which ended on 30th June 2021. According to the details, the company had cash and cash equivalents of $84.85 million on the 30th of June. The total assets on the 30th of June stood at $478.12 million. The total revenue generated by the company during the quarter was $4.62 million. During the equivalent period of 2020, the total revenue generated was $2.92 million. The net loss during the quarter stood at $2.35 million, while during the equivalent period of 2020, the net loss was $1.04 million. The basic and diluted loss per share during both times, i.e. second quarter of 2020 and 2021, was $0.
DNN announced results from metallurgical program
On the 4th of August, DNN announced positive interim results from the ongoing metallurgical program for mining operation at Phoenix Uranium Deposit. The deposit is located at Wheeler River Uranium Project, which the company owns 90%. The test work consistently supported an ISR mining Uranium head grade for phoenix in excess of 10 g/L. The 10g/L threshold was assumed in a pre-feasibility study completed in 2018 for Wheeler River. The company said that t decided to adapt its plan for remaining metallurgical work. This would include the bench scale tests of unit operations of the proposed process plant. That would reflect a 50% increase in head grade of Uranium bearing solution to be recovered from the well field.
What lies in future for DNN stock?
Recent past performances of DNN stock have been outstanding. The stock has increased by some 56% during the last month. According to analysts, the EPS of DNN would rise by 33% during the next year. So, it’s a good time for potential investors to invest in DNN stock.
