DENISON circa 2003 - Lining up for a Groundhog day ? DENISON – KEY METRICS Nov 2003 …
SPOT U ~ $17 / lb ( Choose All on the horizontal axis )
Uranium | 1988-2020 Data | 2021-2022 Forecast | Price | Quote | Chart | Historical (tradingeconomics.com) SP in $cdn ~ $0.63
denison energy stock price history - Google Search The 2003 annual report ( and the later years ) available at … SEDAR
PR.PDF (sedar.com) Denison’s assets back then ???
- 22.5% interest in the Maclean Lake Joint Venture that include the Maclean Lake Mill, then known as the JEB mill, Commissioned in 1999 licensed for 8M lb per year.
- 19.96% in the Midwest Joint Venture (increased to 25.17% a year later)
- Reserves and resources (all categories) 63,682,000 lbs U308 contained in 1,407,000T at a grade of 2.05% with a cut-off set at $22/lb cdn – Denison was entitled to about 1/5 of these lbs. Today I’m guessing we have 8 times the lbs we had in 2003. (~160M vs ~20M lbs)
- No mention of Wheeler River having been explored, No J zone yet
- Drilling started in 2005 at Wheeler and in the 2006 report Wheeler was discussed as potentially hosting a significant orebody, not yet found in 2007 !!!!
- As of December 31, 2005, Denison had an aggregate of 26,200,388 Common Shares issued and outstanding. In addition, the Company has outstanding 1,099,151 warrants to purchase common shares at $15.00. On March 1, 2006, Denison issued 4,450,000 units (the “Units”) on a bought deal basis, at a price of $17.00 per Unit for gross proceeds to Denison of $75.65 million. Each Unit consisted of one common share and one-half of one common share purchase warrant. Each whole warrant is exercisable at a price of $30.00 for a period of five years from the closing date. Net proceeds from this issue are approximately $72 million.
- At March 13, 2007, there were 188,005,528 common shares issued and outstanding, 6,052,074 stock options outstanding to purchase a total of 6,052,074 common shares and 3,322,000 warrants outstanding to purchase a total of 9,568,000 common shares, for a total of 203,625,000 common shares on a fully-diluted basis.
- Cash available was $1.7M, debt to Cogema about $40M (2003) – Debt today 0$
- Price of U hit $140 in May of 2007 and Denison’s SP $14.01 Major catalyst - Cigar lake was supposed to come on line in 2007, it flooded for a while.
I found these statements in one of the technical reports available online at SEDAR (2004) …
DEMAND –
“There are currently 441 nuclear reactors with a generating capacity of 358 Gigawatts of electrical output (GWe), in operation in 31 different countries, generating about 16% of the world’s electricity requirements. In addition, there are 29 more reactors under construction, and, as well, several of the reactors that are not currently operational, including six in Canada, are expected to restart in the near future. A further 29 reactors are planned, for which approvals and funding are already in place. Uranium consumption world-wide in 2002 was about 170 million pounds of U3O8. The demand for uranium is expected to grow by between 1% and 2% per year over the next decade. This growth in consumption is projected to come from the construction of new reactors, but also from improving capacity factors, upgrading of the generating capacity of existing plants, and the extension of the licenced operating lives of the reactors.” SUPPLY –
“The four largest producers accounted for over 60% of world mine production, with Cameco and Cogema alone accounting for over 40%. Total annual world mine production in 2002 was about 91 million pounds of U3O8 which is equal to approximately 53% of annual requirements to fuel nuclear reactors. The McClean Lake Facility is one of the world’s largest producing uranium facilities.” These statements pretty much appeared thru to 2007, not much change occurred in the supply demand situation. And after 15 or so years still pretty close demand/supply fundamentals in place. GL2A – B2S2