I see a very bright future for DNN.
Uranium market has very good fundamentals:
- The biggest 2 companies has left because of COVID (Kazatomprom and Cameco respectively), there is not enough supply of uranium to face the return to normal life, if you don´t know what this means do not invest in stocks.
- Biden presidency trillion investment on clean energy.
- Reactivation of the economy will rise the electricity consumption and uranium demand with it.
- China just finished building 5 nuclear reactors and will put them into operation any time soon.
- Uranium price went down since the 2011 Fukushima accident. It is definitely undervalued. With the current technologies and security improves, the risk of that kind of events is minimal.
As for DNN:
- Denison mines has found perhaps the best single uranium deposit in the world, the Canadian Saskatchewan. Their Phoenix project at Wheeler River has showed a 19.1% grade uranium sample. For context, between 0.5 and 1 is decent, while anything above 4 is considered great.
- The discovered Uranium is close to the ground: their operating cost is an insanely cheap 9 dollars per pound.
- An absolutely insane options increase. 150k Mar. 19 $2.50 call options added this week. The 99.9% call to put ratio, indicates to me someone knows something.
Uranium mining may not be sexy, but if Uranium prices go from $30/lb back toward their all-time highs of $140/lb, I see DNN as being poised to capitalize massively.
My perspective is long term bullish, but the options activity has me being very near-term bullish.
"Uranium ores typically have very low yields of the element of between 0.1 to 0.2%, and some have concentrations lower than 0.05%. The Canadian Saskatchewan mines are the exception and have yields of more than 20% uranium." https://commodity.com/energy/uranium/
https://www.denisonmines.com/news/denison-announces-discovery-of-high-grade-uranium-122721/
https://finance.yahoo.com/quote/DNN/options?date=1616112000
https://www.valuethemarkets.com/2021/01/25/perfect-conditions-for-uranium-to-shine/
I´ve been long on DNN for a long time and I think the time of the Uranium bull run (especially DNN) is just starting.
This is not a financial advice. 12000 @ 0.55
Submitted February 12, 2021 at 06:26PM by HomoSapien-sa https://ift.tt/3adNIPN
