Cantor Fitzgerald: $1.60 TargetTER: What are Denison's prospects? RC: The company has made the very interesting decision to push its Wheeler River project in Saskatchewan to production. Denison owns 60% of Wheeler River, with Cameco owning 30% and Japan-Canada Uranium Co. Ltd. (JCU) owning 10%. Denison's share of this project's indicated resource is 42.1 Mlb. I think Denison has chosen well, as it has added shareholder value by no longer being a pure-play exploration company. Denison's decision has put it in Cameco's viewfinder. Cameco has been sitting on the Athabasca Basin with the knowledge that it will likely be the ultimate buyer of many of the local projects because of economies of scale and synergies. Cameco has been rewarded for its caution as prices have fallen, but now the landscape has changed. Wheeler River could add 710 Mlb annually into the market once it begins production. That will force Cameco to make a decision: Allow Denison to proceed on its own or take it out and hold on to it. TER: When would you expect Denison to go into production? RC: Probably in six to seven years. TER: Would Wheeler River production coincide with the "violent" uranium price increases you expect? RC: It should. I believe, however, that Denison expects the project to be economic even under current prices. We do know that Wheeler River's location signals a low-cost mine because of the grade. Cameco's costs are probably in the high teens to twenties per pound. Given that Denison is in the same area, it's possible it would achieve the same low cost. In that scenario, the current $36/lb is profitable even considering a large capital expenditure (capex) and the discounted cash flow and time value. TER: How do you rate Denison? RC: A Buy rating with a $1.60/share price target.