Interview with David Cates, President & CEO of Denison Mines

Our previous interview: https://www.cruxinvestor.com/posts/denison-mines-tsxdml-first-in-situ-uranium-mine-in-canada-on-track-for-2028-production-6825

Recording date: 4th September 2025

Denison Mines Corporation (TSX:DML) represents a compelling uranium investment opportunity positioned at the intersection of accelerating nuclear demand and persistent supply constraints. The company stands out as one of the few developers with clear visibility to near-term production through its advanced Wheeler River Phoenix project in Saskatchewan's prolific Athabasca Basin.

Phoenix has reached critical development milestones with regulatory panel hearings scheduled for October-December 2025 and expected decisions within 90 days. The project benefits from 75% completed engineering, ongoing procurement since 2023, and in-situ recovery (ISR) technology that reduces operational complexity compared to conventional mining. First production is targeted for mid-2028, representing a 20-year development timeline from discovery that CEO David Cates characterizes as exceptional persistence through market downturns.

The company's recent $345 million convertible bond offering demonstrates sophisticated financial engineering that addresses traditional mining sector dilution concerns. The instrument features cap-call protection limiting dilution to 4% even with 200% share price appreciation, effectively functioning like traditional debt until shares exceed $4.32. This structure provides construction funding while preserving upside for existing shareholders and offers significant cost savings compared to conventional project financing.

Denison enters production during what appears to be the most favorable uranium market dynamics in over a decade. Microsoft's decision to join the World Nuclear Association signals broader corporate recognition of nuclear power's role in supporting data centers and AI infrastructure. Simultaneously, established producers including Kazatomprom and Cameco struggle with production guidance, creating supply shortages precisely as demand accelerates. Utilities actively seek Western uranium supply sources to diversify away from concentrated suppliers.

Unlike pure development companies, Denison generates immediate cash flow through its 22.5% interest in McLean North mine production and maintains 2 million pounds of physical uranium inventory. This diversified revenue profile provides operational flexibility and reduces dependence on equity financing during construction. The company's commercial strategy emphasizes contract diversification rather than betting entirely on spot prices or long-term agreements.

Phoenix represents the foundation for broader growth initiatives. The Wheeler River property includes the Griffin deposit positioned for development using Phoenix cash flows. The company maintains annual exploration spending of C$10-15 million while pursuing strategic partnerships and potential acquisitions enabled by future cash generation. This approach creates organic growth opportunities without additional equity dilution.

Denison's investment appeal centers on execution certainty, financial flexibility, and market timing. The combination of approaching regulatory approval, advanced engineering completion, innovative financing structure, and favorable uranium fundamentals creates multiple value drivers. The company's positioning as a new large-scale Western uranium producer entering a supply-constrained market during accelerating demand provides both near-term catalysts and long-term growth potential.

With regulatory clarity approaching and construction readiness achieved, Denison appears well-positioned to capitalize on uranium market dynamics that many industry participants view as the most favorable in decades.

View Denison Mines' company profile: https://www.cruxinvestor.com/companies/denison-mines-corp

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