# Denison Mines Corp. (DML.TO)



## Hawkdog (Oct 26, 2012)

looking good. big release today

http://www.stockwatch.com/News/Item.aspx?bid=Z-C:DML-2030571&symbol=DML&region=C


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## Hawkdog (Oct 26, 2012)

Caveat.

Not trying to promote DML. More interested in discussing it with anyone else who may own shares.

Do your own DD when buying any stock.


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## PMREdmonton (Apr 6, 2009)

I've been a bit leery of them because they really haven't been much of a producer in the last while.

It is hard to argue that they are not a good value based on metrics like P/B. I know they have popped up on value screens before because of low P/B but you also have to look at high P/S and a P/E of -6 right now (lost 0.21 last year). At some point they will have to show the ability to mine their deposit profitably for this story to have strong legs. 

There is a lot of upside potential here, though. This was once a $16 stock in the last Uranium craze and that is a 10-bagger from this price point.

I have restricted myself to CCO in the Uranium space but there are probably bigger gains to be had in the smaller names if the thesis works out.


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## thenegotiator (May 23, 2012)

ha
10 bagger from hereon.
now that is an extremely optimistic view.
cannot short that one either.
ya gotta give something different man.
that is my Gem picked sector brother:biggrin:


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## Hawkdog (Oct 26, 2012)

I am playing this as a buyout. The wheeler property is close to the key lake mine and Cameco already owns a stake in in the deposit.
With Rio Tinto and Lundin snooping around - and now Denison with a indicated deposit of 52 million pounds of 15% U308.
Hathor which was just taken out by Rio Tinto had roughly 60 million pounds at around 12%.

It should be an interesting winter in the Athabasca Basin as drills are turning everywhere.


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## Toronto.gal (Jan 8, 2010)

thenegotiator said:


> that is my Gem picked sector brother:biggrin:


Has been mine for quite a long time as well 'brother'; before the Fukushima tragedy even, though by pure luck, I sold in early 2011 as a result of Arab Spring nerves, and just before the earthquake. However, since then, I have bought them all back; picking the 'crumbs' at every opportunity.

Don't follow DML, but own shares in CCO/PDN/UEC/UUU [and of course, I trade them as well while the stocks are so cheap].


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## thenegotiator (May 23, 2012)

Toronto.gal said:


> Has been mine for quite a long time as well 'brother'; before the Fukushima tragedy even, though by pure luck, I sold in early 2011 as a result of Arab Spring nerves, and just before the earthquake. However, since then, I have bought them all back; picking the 'crumbs' at every opportunity.
> 
> Don't follow DML, but own shares in CCO/PDN/UEC/UUU [and of course, I trade them as well while the stocks are so cheap].



are you following me?:biggrin::encouragement:
lol
that is definitely my Gal:greedy_dollars:


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## Uranium101 (Nov 18, 2011)

so, Uranium stocks are back in the spotlight?
It seems that no one was talking about it last year lol.


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## Hawkdog (Oct 26, 2012)

Toronto.gal said:


> Don't follow DML, but own shares in CCO/PDN/UEC/UUU [and of course, I trade them as well while the stocks are so cheap].


Curious if you are following DML now? Did you sell out of UUU?


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## Toronto.gal (Jan 8, 2010)

Not yet x2.


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## Hawkdog (Oct 26, 2012)

Denison to acquire Fission for $70-million in shares

http://www.stockwatch.com/News/Item.aspx?bid=Z-C:DML-2032247&symbol=DML&region=C


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## Toronto.gal (Jan 8, 2010)

I'll keep the stock on my watch-list for now.

Thanks for the update.


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## Uranium101 (Nov 18, 2011)

And DML.TO share price doesn't drop for the merger either. What gives?


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## Hawkdog (Oct 26, 2012)

is it supposed to?

I expected it to go up, Fission owns a big stake in the Waterbury Lake property which I believe is continuous with the Hathor's big property - Making DML more attractive to Rio Tinto.

This analyst from the FP seems to agree.

http://business.financialpost.com/2...on-but-rio-tinto-and-cameco-may-get-involved/


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## Toronto.gal (Jan 8, 2010)

Hawkdog said:


> is it supposed to?


Not knowing anything about either company and its respective financials, I had also expected the price of DML to have initially fallen.

The share price of an acquired company typically rises when a healthy premium is offered for it, which is necessary to make shareholders give :encouragement:, like what happened to NXY, which received a 60% premium from the Chinese. Compare that to the 16% BHP had offered for POT back in Aug./2010. Or more to the topic, the offer to buy UUU @ $2.86, or more accurately, @ the current spot price of $42+ a pound vs the much higher $72+ just prior to the earthquake & Daiichi nuclear disaster.

U prices in the last 3 years:

- Jan/2011 = $72.63
*- Jan/2012* = $52.13
- Jan/2013 = $42.25

OTOH, the price of the acquiring company typically falls, as it now has a debt 2 pay [that hopefully will be worth it in the long run], which at times = overpaying for it [as was the case when CNOOC purchased NXY].

I own shares of SWC [Stillwater Mining], which dropped for various reasons, including the overpaying of Canadian company PGM [Peregrine Metals] back in 2011, which btw saw shares of the latter rise over 200% the day of the announcement, so I should have been holding PGM instead of SWC. :rolleyes2:

Anyhow, I'm on the + side with SWC & plan to sell much later [always trading it short-term as well given the still affordable price].


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## Hawkdog (Oct 26, 2012)

Toronto.gal said:


> Not knowing anything about either company and its respective financials, I had also expected the price of DML to have initially fallen.
> 
> The share price of an acquired company typically rises when a healthy premium is offered for it, which is necessary to make shareholders give :encouragement:, .


One of the reasons I picked up DML :encouragement:

Also I believe that DML is still moving up based on the announcement outlining an increase in their deposit.


The deal for FIS looks cheap if you consider they have outlined the following deposit on their flagship Waterbury Lake Property (adjacent the recent Rio Tinto acquisition)


An Indicated resource totaling 10,284,000 lbs. based on 307,000 tonnes at an average grade of 1.52% U3O8
An additional 2,747,000 lbs. based on 138,000 tonnes averaging 0.90% U308 is classified as an Inferred mineral resource

http://www.fission-energy.com/s/waterburylake.asp

I am just annoyed I bought DML a week to early, if I had waited a week I would have been in at 1.10 instead of 1.28


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## Hawkdog (Oct 26, 2012)

PS.

Thanks for the insight on reasons why DML potentially should have gone down. appreciate it.
cheers


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## Hawkdog (Oct 26, 2012)

Uranium Consolidation: Fission likes Denison's offer, wants to "do it all again" in Saskatchewan's Athabasca Basin
By ResourceClips

Uranium M&A activity continues with Denison Mines’ [T.DML] move to acquire Fission Energy [V.FIS]. Both companies back the plan, which would help Denison consolidate its position in Saskatchewan’s Athabasca Basin while Fission’s management would move into an aggressively “lean and hungry”—but well-financed—spinoff.
Under the binding letter of intent announced January 16, Denison would get Fission’s 60% interest in the Waterbury Lake uranium project. Fission’s other focal point, its 50% stake in the Patterson Lake South uranium project, would spin out to a new company headed by the Fission team. The deal, which values Fission at $70 million, would offer 0.355 Denison shares for each Fission share. As a result, Fission shareholders would hold about 11% of Denison as well as a proportional interest in the newly formed company.
The parties expect consummation by April. The LOI includes a reciprocal break fee of $3.5 million.
Patterson Lake South, located in the western Athabasca Basin, is currently a 50/50 joint venture between Fission and Alpha Minerals [V.AMW]. The high-grade, near-surface project has seen a steady stream of encouraging results since its discovery last fall.
In the eastern basin, Fission holds a 60% interest and 2% NSR in Waterbury Lake. A consortium led by the Korean power utility Kepco holds the remaining 40%. Waterbury’s J-Zone is an extension of the Roughrider deposit, which Rio Tinto bought from Hathor Exploration last year for $654 million. Cameco’s [T.CCO] McArthur River and Rabbit Lake mines, as well as its Millennium deposit, lie on the same trend.
Denison would also pick up the rest of Fission’s eastern basin assets, a few more in Quebec and Nunavut, and Fission’s share of two JVs in Namibia.
Denison already commands a strong position in the eastern basin, with 26 projects covering over 330,000 hectares. Included is Denison’s 60% interest in Wheeler River, a JV in which Cameco and JCU Exploration hold 30% and 10% respectively. Also in the eastern basin, Denison holds a 25.17% interest in the Midwest high-grade uranium deposits and a 22.5% stake in the McClean Lake near-surface deposits and mill, one of the world’s largest uranium processing plants.
Last November Denison acquired 13.9% of International Enexco [V.IEC], whose assets include Athabasca’s Mann Lake project, a JV in which Cameco holds 52.5% and AREVA 17.5%. Other Denison assets are located in Mongolia and Zambia.
Speaking to ResourceClips, Fission chairman/CEO Dev Randhawa says, “I think Denison’s corporate strategy is to be a dominant player like Cameco and Rio, so they acquired JNR Resources [V.JNN]] last fall and now they’re acquiring our asset next to Rio, which is just north of Denison’s Midwest project.”
The announcement comes just two days after Russia’s state-owned ARMZ made a $1.3-billion offer for Uranium One [T.UUU], a bid that Chris and Michael Berry call “strategic as well as opportunistic.” Randhawa acknowledges that “these are very difficult times for juniors. A lot of people were optimistic that they could raise more money down the road, then found it never happened. Some people thought things would get better last summer, or in the fall. Now it’s January. Something like 40% of the companies on the TSX have less than $400,000 in the bank. It’s a good time to be buying.”
But he maintains the Fission acquisition would be “a good deal for both companies. We like Denison as a company, they have a very high-grade project at Phoenix [part of Wheeler River]. So our investors get a piece of a bigger chip which is more diversified and they also get a free chip in Patterson Lake South, which we think is very exciting, especially with mineralization kicking in at 50 metres.”
Cameco, Randhawa says, “has traditionally ‘owned’ the Athabasca. But that’s changing. I could see Rio taking a run at Denison. They do need access to that mill for their Roughrider zone.”
But couldn’t Rio or Cameco go after Fission first? “That may happen,” he responds. “I never really thought Rio would come in and compete with Cameco when they first took a run at Hathor. There’s talk out there. Whoever does control the J-zone—Rio’s probably the most natural because it’s very hard not to mine something that’s 20 yards away from yours. Common sense says they should all be developed as one. But that’s pure speculation.”
As for the LOI, “we signed a deal with Denison in good faith, we have a break-up fee with them, but obviously our shareholders may be open to any offer that comes in.”
For his part, Randhawa’s looking forward to the new spinoff. “That’s really what juniors are supposed to do, right? We go out and find land, make discoveries, develop them and sell them. We want to focus on Patterson Lake and the western part of the basin. So Fission’s management team will simply go to the new company and obviously the dominant project will be Patterson Lake. Waterbury Lake is the jewel for Denison.”
He adds, “Keep in mind that Kepco is a large shareholder of Denison and also holds 40% of Waterbury Lake, so it helps consolidate Kepco’s holdings too.”
And what about the Fission team and their proposed spinoff company? “We didn’t sign a non-compete and we actually have a lot of cash, $18.8 million to be exact. So we intend to be quite active ourselves in picking up projects. We’re basically trading paper with Denison. At the same time we’ve got lots of cash and a lean, hungry group that wants to go out and do it all again.”
Fission opened January 16 at 
.75, 11 cents above its previous close, then finished the day at 78 cents. At press time the company had 124.54 million shares outstanding for a market cap of $97.14 million.
Denison opened January 16 at $1.43, three cents below its previous close. The stock then reached $1.50 before closing on $1.48. With 388.8 million shares outstanding, Denison had a press-time market cap of $575.43 million.

Read more at http://www.stockhouse.com/blogs/viewdetailedpost.aspx?p=157872&msg=11#MYj7Fpm1S1v31taD.99


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