Denison Mines Is a Uranium Mining Stock That Requires Too Much Care

Denison Mines Is a Uranium Mining Stock That Requires Too Much Care

Denison Mines (NYSEAMERICAN: DNN ) is a Canadian uranium mining company with an outsized valuation and penny stock status. As such, investors should be careful about investing in DNN stock, as it is likely to be quite volatile. The Toronto-based company has a major prospective uranium mining project in northern Saskatchewan called the Wheeler River project . A Seeking Alpha analyst says that this project has a “ positive net present value at the current spot uranium prices .” However, he believes that DNN stock is still overvalued. Recent Capital Raises

Nevertheless, Denison Mines has astutely raised capital at several price points recently. On Feb. 11, the company raised $25 million before broker greenshoe options, as well as 8 million CAD in “flow-through” shares and warrants with a $2.00 per share exercise price.

This is after DNN stock shot up from 33 cents per share in November 2020, to as […]

About the author: StockMan

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