Corporate Update
March 2024
Uranium Development & Exploration
The Athabasca Basin, Northern Saskatchewan
Cautionary Statements & References
This presentation and the information contained herein is designed to help you understand management's current views, and may not be appropriate for other purposes. This presentation contains third-party information, such as the uranium market, other issuers, provincial and federal infrastructure and regulations, etc., derived from third-party publications and reports which Denison believes are reliable but have not been independently verified by the Company.
Certain information contained in this presentation constitutes "forward-looking information", within the meaning of the United States Private Securities Litigation Reform Act of 1995 and similar Canadian legislation concerning the business, operations and financial performance and condition of Denison. Generally, these forward-lookingstatements can be identified by the use of forward-lookingterminology such as "plans", "expects", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes", or the negatives and / or variations of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur",
"be achieved" or "has the potential to". In particular, this presentation contains forward-looking information pertaining to the results of, and estimates, assumptions and projections provided in, the 2023 Phoenix feasibility study ("Phoenix FS"), the 2023 Gryphon PFS Update ("Gryphon PFS Update") and the Waterbury PEA, including future development methods and plans, market prices, costs and capital expenditures; de-risking and project assessment activities, plans and objectives; assumptions regarding Denison's ability to obtain all necessary regulatory approvals to commence development at Wheeler River; Denison's percentage interest in its projects and assumed continuity of its agreements with its joint venture partners and other third parties; production and SABRE development outlook for McClean Lake; and estimates of uranium industry factors, including physical uranium supply and demand. Statements relating to "mineral resources" are deemed to be forward-looking information, as they involve the implied assessment, based on certain estimates and assumptions that the mineral resources described can be profitably produced in the future.
Forward looking statements are based on the opinions and estimates of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Denison to be materially different from those expressed or implied by such forward-looking statements. Denison faces certain risks, including the proposed use of mining methods which are novel and untested in the Athabasca basin, the inability to permit or develop its projects as currently planned, the inability to secure sufficient financing to pursue its business objectives, the unpredictability of market prices, events that could materially increase costs, changes in the regulatory environment governing the project lands, and unanticipated claims against title and rights to the project. Denison believes that the expectations reflected in this forward-lookinginformation are reasonable but there can be no assurance that such statements will prove to be accurate and may differ materially from those anticipated in this forward looking information. For a discussion in respect of risks and other factors that could influence forward-lookingevents, please refer to the "Risk Factors" in the Management Discussion & Analysis dated February 29, 2024 available under its profile on SEDAR+ at www.sedarplus.ca and available on EDGAR at www.sec.gov/edgar.shtml. These factors are not, and should not be construed as being, exhaustive.
Readers should not place undue reliance on forward-lookingstatements. The forward-looking information contained in this presentation is expressly qualified by this cautionary statement. Any forward-looking information and the assumptions made with respect thereto speaks only to the effective date of this presentation. Denison does not undertake any obligation to publicly update or revise any forward-looking information after such date to conform such information to actual results or to changes in its expectations except as otherwise required by applicable legislation.
Cautionary Note to United States Investors Concerning Estimates of Mineral Resources and Mineral Reserves: This presentation may use terms such as "measured", "indicated" and/or "inferred" mineral resources and "proven" or "probable" mineral reserves, which are terms defined with reference to the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") CIM Definition Standards on Mineral Resources and Mineral Reserves ("CIM Standards"). The Company's descriptions of its projects may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder.
Qualified Persons
The disclosure of a scientific or technical nature within this presentation, including the disclosure of mineral resources, mineral reserves, and the results of the Phoenix FS, Gryphon PFS Update and Waterbury PEA, was reviewed and approved by Chad Sorba, P.Geo, Vice President Technical Services & Project Evaluation, and Andy Yackulic, P.Geo, Vice President Exploration, each of whom is a Qualified Person in accordance with the requirements of NI 43-101.
Technical Reports
- For further details regarding the Wheeler River project, please refer to the Company's press release dated June 26, 2023 announcing the results of the Phoenix FS and Gryphon PFS Update and the technical report titled "NI 43- 101 Technical Report on the Wheeler River Project, Athabasca Basin, Saskatchewan, Canada" with an effective date of June 23, 2023 ("Wheeler River Technical Report") .
- For further details regarding the Waterbury Lake project, please refer to the Company's press release dated November 17, 2020 and the technical report titled "Preliminary Economic Assessment for the Tthe Heldeth Túé (J Zone) Deposit, Waterbury Lake Property, Northern Saskatchewan, Canada" with an effective date of October 30, 2020 ("Waterbury PEA"). The PEA is a preliminary analysis of the potential viability of the Project's mineral resources, and should not be considered the same as a Pre-Feasibilityor Feasibility Study, as various factors are preliminary in nature. The PEA includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized. Mineral resources are not mineral reserves and do not have demonstrated economic viability. Scheduled tonnes and grade do not represent an estimate of mineral reserves.
For a description of the data verification, assay procedures and the quality assurance program and quality control measures applied by Denison, please see Denison's Annual Information Form dated March 27, 2023. A copy of the foregoing is available on Denison's website and under its profile on SEDAR+ and on EDGAR.
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Key Investment Highlights(1):
Advanced Athabasca Basin uranium developer with unique asset mix
Threelow-cost uranium development projects operated by Denison
Phoenix, Gryphon, and THT/Waterbury all within UxC's "First Tier" of global assets
Phoenix combines lowest-cost mining method with Athabasca Basin high-grades
Flagship ISR project advancing through permitting with significant technical de-risking complete
Interest in strategic regional asset with McClean Lake mill and mine
Excess licensed milling capacity with approval for expanded tailings management facility
2025 mining restartat McClean Lake North deposit with planned initial prod'n of 800,000 lbs U3O8 (100%)
High-potential exploration portfolio and interests in key mines / projects operated by "majors"
Large exploration portfolio, including Moon Lake South and Johnston Lake properties, plus minority interests in Orano-Denisonco-owned McClean Lake and Midwest Joint Ventures
Strong balance sheet with ~CAD$430M of working capital, physical uranium and investments(2)
Denison's financial and liquid assets on hand, relative to flagship development project initial capex (~$CAD400M) is unrivaled and puts the company in an enviable position for project advancement
Focused on the infrastructure-rich Eastern Athabasca Basin in Saskatchewan, Canada Nuclear renaissance: 20+ nations pledge to triple nuclear energy capacity by 2050
NOTES: (1) See supporting slides for details. (2) As of December 31, 2023, for additional details see financial statements and MD&A for the period ended December 31, 2023. | 3 |
Diversified Athabasca Basin asset base with superior development leverage
PHOTO:
Aerial view of Denison's 22.5% owned McClean Lake mill facility
NOTES:
95%(1)
effective interest in
Flagship
Wheeler River project
Development-stage project
Largest undeveloped uranium project in the infrastructure rich eastern Athabasca Basin
2023 Phoenix Feasibility Study(2) Draft Environmental Impact
Statement ("EIS") submitted(3)
22.5%
interest in
Strategic McClean Lake Uranium Mill & Mines
11% of global uranium production
processed through mill
Mining restart approved using SABRE mining with planned 2025 production of ~800,000 lbs. U3O8 (4)
Excess licensed milling capacity
69.35%
interest in
Emerging
Waterbury Lake project
PEA stage development project(5)
Tthe Heldeth Túé ("THT") deposit highlights potential for future development project pipeline
Successful 2023 ISR field test(6)
(1) Denison increased its |
effective interest in |
Wheeler River as part of |
the acquisition of 50% of |
JCU (Canada) Exploration |
Company, Limited. See |
Denison's news release |
dated August. 3, 2021. |
(2) See the Wheeler River |
Technical Report titled "NI |
43-101 Technical Report |
on the Wheeler River |
Project, Athabasca Basin, |
Saskatchewan, Canada" |
dated June 23, 2023. |
(3) See news release dated |
October 26, 2022. |
(4) See news release dated |
January 24, 2024. |
(5) Refer to the Waterbury |
Lake Technical Report |
titled "Preliminary |
Economic Assessment for |
the Tthe Heldeth Túé |
(J Zone) Deposit, |
Waterbury Lake Property, |
Northern Saskatchewan, |
Canada" dated October |
Participating interests in key development- stage assets operated by uranium "majors"
Includes 22.5% in McClean Lake (Orano), 25.17% in Midwest (Orano), and an effective 15% in Millennium (Cameco) through 50% ownership of JCU(7)
~385,000
hectares of exploration ground(8)
30, 2020. |
(6) See news release dated |
November 6, 2023. |
(7) See news release dated |
August. 3, 2021. |
(8) Denison direct land |
position shown as of |
December 31, 2023; |
excludes the land |
positions held by JCU. |
4
Denison's development portfolio projects:
Positioned amongst the lowest all-in cost assets of UxC's First Tier
Sample of Global Production Costs - September 2023 (1)(2)(3)
$70.00
Planned and Producing Operations (with Mining Method)"Third/Fourth Tier" (up to ~US$92/lb U3O8)
NOTES:
8 | "Second Tier" | ||||||||||||||||
O | $60.00 | (up to ~US$48/lb U3O8 | |||||||||||||||
3 | |||||||||||||||||
U | UxC's "First Tier" | ||||||||||||||||
USD$/lb | $40.00 | ||||||||||||||||
$50.00 | (includes lowest-cost projects with full costs up to ~US$33/lb U3O8) | ||||||||||||||||
- | US$25.47 | ||||||||||||||||
Costs | |||||||||||||||||
$30.00 | US$24.93 | (2023) | |||||||||||||||
US$16.04 | (2020) | ||||||||||||||||
Full/in | $10.00 | ||||||||||||||||
(2023) | |||||||||||||||||
$20.00 | |||||||||||||||||
All- | $0.00 | ISR | ISR | ISR | ISR | UG | ISR | UG | UG | UG UG UG | UG | ISR ISR | UG | OP | OP | ISR | OP |
Denison/Canada | Canada | Kazakhstan | Australia | U.S.A. | Africa | |||||
- Chart data, including
"full costs" and UxC's categorization of production cost "tiers", have been derived from UxC's estimates of worldwide production costs from the Uranium Production Cost Study dated September 2023. - For Phoenix and Gryphon, see the Wheeler River Technical Report titled "NI 43-101 Technical Report on the Wheeler River Project, Athabasca Basin, Saskatchewan, Canada" dated June 23, 2023.
- For THT/Waterbury, refer to the Waterbury Lake Technical Report titled "Preliminary
Economic Assessment for the Tthe Heldeth Túé (THT) (J Zone) Deposit, Waterbury Lake Property, Northern Saskatchewan,
Canada" dated October
30, 2020.
5
Robust Balance Sheet with ~CAD$430M(1,2)
in working capital, physical uranium and investments
2.3M lbs U3O8
in holdings of
physical uranium at Dec. 31, 2023
Market value ~CAD$277M (US$91.00/lb U3O8)
+/- ~CAD$30M in change for every US$10/lb U3O8 move in spot price
Acquired at average cost of USD$29.66/lb U3O8
Long-term holding expected to enhance access to future project financing for flagship Wheeler River(2)
All material received and held in licenced North American storage facilities (Cameco + ConverDyn)
CAD$131M
in
cash and cash equivalents(1)
Working capital of CAD$135M(1)
CAD$26M
investments in
uranium equities and convertibles(3)
Significant equity and convertible debenture holdings in uranium exploration and development companies, including F3 Uranium Corp., Skyharbour Resources Ltd., & GoviEx Uranium Inc.
PHOTO:
Packaged U3O8 yellowcake at Denison's 22.5% owned McClean Lake mill.
NOTES:
(1) As of December 31, |
2023, for additional |
details see financial |
statements and MD&A for |
the period ended |
December 31, 2023. |
Working capital is a non- |
IFRS financial measure |
and is calculated as the |
value of current assets |
less the value of current |
liabilities, excluding non- |
cash current liabilities; |
also excludes investment |
in joint venture (JCU). |
(2) See Denison's news |
releases dated March 15, |
2021, March 22, 2021, and |
April 1, 2021. |
(3) As of December 31, |
Balance sheet position, relative to initial project capex for flagship development asset (Phoenix), is unrivaled among uranium development-stage peers
2023, for additional |
details see financial |
statements and MD&A for |
the period ended |
December 31, 2023; |
includes investments in |
uranium equities and |
convertible debentures. |
6
Environmental, Social, Governance & Indigenous (ESG+I)
Fundamental considerations driving Denison's operations
PHOTO:
Multiple
Indigenous
Agreements
In Place
- Shared Prosperity Agreement with English River First Nation(4)
- Participation/Funding and/or Exploration Agreements with: Kineepik Métis Local / Pinehouse(5), Ya'thi Néné Lands & Resources Office(6), and Métis Nation - Saskatchewan(7)
Comprehensive ESG Reporting
Designed to address GRI, SASB, TCFD and other global disclosure frameworks
Board approved
Indigenous Peoples Policy
First-in-sector policy reflecting Denison's commitment to take action towards advancing reconciliation with Indigenous peoples in Canada(1)
Strong EHS&S Culture & Results
Zero lost time injuries across all operations and no significant environmental events for 2022(8)
Top 115 in Canada
Leading
Governance
Practices &
Disclosure
Denison recognized by Globe
- Mail "Board Games" as top uranium development company for corporate governance practices & disclosure in its assessment of leading companies and trusts included in Canada's benchmark S&P/TSX Composite Index(2, 4)
Authentic Social Programs
Denison's community / social
investment program targets community-based initiatives
Highlights of the Elders of Sakitawak's market garden in Ile a la Crosse,
- community-basedinitiative sponsored by Denison.
LINKS:
Denison's ESG Report
ERFN SPA Signing Video
NOTES:
- See news release dated December 2, 2021.
- For more information:https://www.theglobeand mail.com/business/career s/management/board-games/article-the-globe-and-mails-comprehensive-ranking-of-canadas-corporate-boards-3/
- See Denison's news release dated March 15, 2021.
- See news release dated September 27, 2023.
- See news release dated June 23, 2022.
- See news release dated October 20, 2022.
- See MD&A for the period ended Dec. 31, 2022
-
See Denison's Annual
Information Form for additional details.
7
Large land position in the infrastructure-rich eastern portion of the Athabasca Basin(1)(2)
Waterbury Lake (Denison 69.35%)
McClean Lake Mill
Moon Lake South
(Denison 75%)
All Season Highway
/ Haul Road
Midwest
(Denison 25.17%)
Waterfound
(Denison 24.68%)(3)
McArthur River Mine
Wheeler River
(Denison 95%)(3)
Provincial Power Grid
(Denison 22.5%)
McClean Lake North
(Denison 22.5%)
Rabbit Lake Mill
NOTES:
(1) Denison direct land
Cigar Lake Mineposition shown as of December 31, 2023.
(2) Excludes interests held only through 50% ownership of JCU - See Denison news release dated August 3, 2021.
(3) Reflects Denison's effective interest, including a portion attributable to Denison's
50% ownership in JCU (Canada) Exploration Company, Limited. See Denison's news release dated August. 3, 2021.
Key Lake Mill | 8 |
95% owned flagship Wheeler River development project(1)(2)
Two
Low-cost development assets
Phoenix - designed as a low- cost In-Situ Recovery ("ISR") operation with on-site processing to finished yellow cake (U3O8)
Gryphon - contributes additional low-cost production via conventional underground mining with assumed toll milling at 22.5% Denison owned McClean Lake mill
~16.5 years
Aggregate operating
Mine life(3)
106.4M lbs U3O8
combined
Proven & Probable Reserves
(100% basis)
CAD$419M
Estimated (100% basis)
Initial CAPEX (Phoenix)
2023 Costing
in NI 43-101
Phoenix Feasibility Study and Gryphon PFS Update reflect current post-inflation costing environment
PHOTO:
Installation of large- diameter commercial scale ISR test wells at Phoenix during 2021.
LINKS:
Wheeler River Project Page on Denison Website.
NOTES:
(1) Refer to the Wheeler |
River Technical Report |
titled "NI 43-101 Technical |
Report on the Wheeler |
River Project, Athabasca |
Basin, Saskatchewan, |
Canada" dated June |
23, 2023. |
(2) Denison increased its |
effective interest in |
Wheeler River as part of |
the acquisition of 50% of |
JCU (Canada) Exploration |
in the traditional territory of English River First Nation, in the | 11,720 |
Located within the boundaries of Treaty 10 | |
homeland of the Métis, and within Nuhenéné | hectares of prospective |
ground over 19 claims |
Company, Limited. See |
Denison's news release |
dated August 3, 2021. |
(3) Reflects 10-year mine |
life estimated for Phoenix |
and 6.5-year mine life |
estimated for Gryphon. |
9
Phoenix In-Situ Recovery ("ISR") Feasibility Study (2023):
Reflects rigour of multi-year technical de-risking and delivers impressive economic results(1)
PHOTOS:
70.5M
lbs U3O8
@
11.4%
U3O8
Measured &
Indicated
Mineral
Resources
(280,200 tonnes,
100% basis)
One of the highest- grade undeveloped uranium deposits globally
Including…
56.3M
lbs U3O8
@ 46.0% U3O8
M&I mineral resources for Zone A high-gradedomain
C$1.56B | C$419M |
estimated | estimated |
Base-case | Initial |
post-tax NPV8% | CAPEX |
(100% basis) | (100% basis) |
(see note 2, 3) |
90.0% | 3.7 to 1 |
estimated | impressive |
Base-case | Base-case |
post-tax | post-tax NPV |
IRR | to initial capital |
(see note 2, 3) | cost ratio |
US$6.28 | US$16.04 |
/ lbs U3O8 | / lbs U3O8 |
average | average |
Cash Operating | All-in |
Costs | Cost(4) |
(C$8.51/lb U3O8) | (C$21.73/lb U3O8) |
Phoenix Feasibility Field Test (FFT) facilities during operations in 2022.
NOTES:
- See the Wheeler River Technical Report titled "NI 43-101 Technical Report on the Wheeler River Project, Athabasca Basin, Saskatchewan, Can ada" dated June 23, 2023.
- NPV and IRR are calculated to the start of construction activities for the Phoenix operation and excludes $67.4 million in pre-FID expenditures.
- Post-taxNPV, IRR and payback period are based on the "adjusted Post-tax" scenario, which includes the benefit of entity level tax attributes which are expected to be available and used to reduce taxable income from the Phoenix operation. See Wheeler River Technical Report for details.
- All-incost is estimated on a pre-tax basis and includes all project operating costs, capital costs post-FID, and decommissioning costs divided by the estimated number of pounds U3O8 to be produced.
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Denison Mines Corp. published this content on 02 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 March 2024 14:11:07 UTC.