DML One of the best nuclear energy stocks to buy right now. Denison Mines (TSX:DML)(NYSE:DNN) is a uranium exploration and development company focusing on the Athabasca Basin of Northern Saskatchewan, an area renowned for its rich uranium resource deposits. Its flagship project is the Wheeler River Uranium Project, but it also has ownership stakes in various other properties.
One thing that makes Denison such an exciting way to invest in nuclear power is operating leverage.
No matter what the price of the underlying commodity does, a miner's expenses stay relatively consistent. If uranium soars and the cost to extract it remains relatively constant, that's good news for producers like Denison.
Although Denison is still in the exploration stage of developing its marquee asset, there are still plenty of reasons to get excited. It is projected to be the lowest-cost mine in the entire region. Mine life is projected at nearly 15 years with more than 100 million lbs in reserves. Management is also sitting on plenty of cash -- along with physical uranium it can easily convert to cash -- so it has a way to pay for all this development without diluting its ownership share below 95%.
Denison has other projects with some impressive partners; as a bonus, these assets have current production. It owns 22.5% of the McClean Lake Mill operation, with the rest owned by Orano, the French nuclear giant. It also has a 67% interest in the Waterbury Lake project, with the remainder of this partnership owned by Korea Hydro Nuclear Power. It's good to have some of the largest nuclear operators in the world on your side.