Interview with David Cates, President & CEO of Denison Mines

Our previous interview: https://www.cruxinvestor.com/posts/denison-mines-tsxvdml-bullish-fundamentals-set-stage-for-denison-to-thrive-4876

Recording date: 6th March 2025

Denison Mines (TSX: DML, NYSE American: DNN) is making significant progress on its Wheeler River Project, positioning the Phoenix deposit to become Canada's first in-situ recovery uranium mine with production targeted for the first half of 2028.

The company has completed substantial technical de-risking work and is now in the final regulatory stages. Canadian Nuclear Safety Commission hearings are scheduled for October and December 2025, with potential approval expected in early 2026, which would allow construction to begin shortly thereafter.

According to CEO David Cates, the Phoenix deposit is projected to produce 7-9 million pounds of uranium annually during its first five years of operation, decreasing to 3-5 million pounds in the latter five years of its 10-year mine life. Beyond Phoenix, Denison's Gryphon deposit at Wheeler River could extend the combined mine life to approximately 15 years, maintaining an average annual production of 7-9 million pounds.

Denison distinguishes itself from competitors through its debt-free status and strong balance sheet. Cates indicated the financing strategy would focus on "credit-related instruments" rather than equity raises, aiming for "minimal to no equity dilution" for shareholders.

The CEO expressed skepticism about many announced uranium projects in the sector, emphasizing the challenges in assembling qualified teams and securing necessary permits. Having worked on Phoenix since 2019, Cates believes many competitor timelines are unrealistic: "I'm not sure how you go from being a staff of two people or three people in a company to all of a sudden having the team that can engineer and build and then execute one of these projects and do it in the next two years."

While the uranium spot price has experienced recent volatility, Cates emphasized that most uranium volumes are traded in the long-term market, which has maintained strength. He views the current market conditions as creating potential buying opportunities, with equity valuations showing a "massive disconnect" from the fundamental supply-demand imbalance.

Beyond Phoenix, Denison is advancing other projects, including a partnership with Orano on the Midwest project and work with Korea Hydro & Nuclear Power on the Waterbury Lake THT deposit. The company aims to position itself as a "high-margin intermediate producer" in the 5-10 million pound annual production range, focusing on quality projects in the Athabasca Basin rather than pursuing market share through lower-margin assets.

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

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