Why Denison Mines Stock Rallied 14% in May

What happened

Shares of Denison Mines ( NYSEMKT:DNN ) advanced roughly 14% in May according to data from S&P Global Market Intelligence . That, however, wasn’t out of line with the performance of its peers, which were up about the same amount. But Denison isn’t exactly comparable to most of its uranium mining peers because its biggest asset isn’t an operating mine but a mine development called the Wheeler Project. So what

Uranium prices have been relatively strong since January 2020, and they increased in May. So there was a clear tailwind for uranium companies last month that likely played a big role in Denison’s price increase. However, the sector has been receiving increasing interest of late because nuclear power plants don’t emit carbon, making them a source of clean energy (despite the negative image of nuclear power). Uranium miners have actually been building stockpiles of the fuel as […]

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