TD Has $1.20 TargetDenison Mines Corp. (DML-T, DNN-A) C$0.61 Denison Announces Start of 2016 Athabasca Exploration Event Denison Mines provided its operational outlook for 2016. Impact: NEUTRAL We estimate that Denisons total budget for 2016, net of revenues, is approximately $12.4mm, which represents a reduced level of net spending when compared with the companys budget for 2015. The company continues to focus on its assets in the Athabasca Basin, including a 75,000m drilling program targeting some of its key properties such as Wheeler River (Gryphon and Phoenix zone), Wolly, and Crawford Lake. We assume that the company will need to raise $20mm in equity in 2016 (unchanged) to fund its budget and maintain a similar level of spending in 2017. Our estimates also assume that the company will receive a $5mm contingent payment related to the previously announced sale of the Gurvan Saihan project in Mongolia to Uranium Industries. The net result of these changes had no impact on our C$1.20 target price. One of the key catalysts for the company is the completion of a Preliminary Economic Assessment (PEA) for the Wheeler River project, expected in Q1/16. The PEA is evaluating the co-development potential of the Phoenix and Gryphon deposits. Given the projects size, grade, and proximity to infrastructure, we expect the economics of the PEA to compare favourably with other development projects in the Athabasca Basin. TD Investment Conclusion Our investment thesis and SPECULATIVE BUY rating on the company are unchanged. Denison provides exposure to a large diversified resource base, exploration upside and, in our view, it is one of the best capitalized, more liquid uranium companies within the junior development sector. We believe that the majority of the value of the company is contained within its holdings in the Athabasca Basin, including Wheeler River, Midwest, and its strategic interest in the McClean Lake mill.