Denison Mines Corp 6-K, filed Aug 5, 2022

About this 6-K

Denison Mines Corp. (DNN)

6-K 2022-08-05 For: 2022-08-05

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Added on April 07, 2026

DENISON MINES CORP.

/s/ Amanda Willett

Date: August 5, 2022

Amanda Willett

Vice President Legal and Corporate Secretary

Denison Mines Corp filed this 6-K on August 5, 2022.

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Exhibit Number		Description

99.1		Interim Consolidated Financial Statements for the period ended June 30, 2022
99.2		Management's Discussion and Analysis for the three months ended June 30, 2022
99.3		Form 51-102F2 Certification of Interim Filings - CEO
99.4		Form 51-102F2 Certification of Interim Filings - CFO
99.5		Press release dated August 4, 2022
99.6		Consent of Qualified Person
99.7		Consent of Qualified Person

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Unaudited - Expressed in thousands of Canadian dollars (“CAD”) except for share amounts)
		At June 30 2022		At December 31 2021

ASSETS
Current
Cash and cash equivalents (note 4)	$	56,839	$	63,998
Trade and other receivables (note 5)		4,214		3,656
Inventories (note 6)		2,733		3,454
Investments-equity instruments (note 7)		9,536		14,437
Prepaid expenses and other		976		1,310
		74,298		86,855
Non-Current
Inventories-ore in stockpiles (note 6)		2,098		2,098
Investments-equity instruments (note 7)		56		141
Investments-uranium (note 7)		162,693		133,114
Investments-joint venture (note 8)		20,088		21,392
Prepaid expenses and other		110		221
Restricted cash and investments (note 9)		11,563		12,001
Property, plant and equipment (note 10)		252,871		254,462
Total assets	$	523,777	$	510,284

LIABILITIES
Current
Accounts payable and accrued liabilities (note 11)	$	9,404	$	8,590
Warrants on investment (note 7)		455		1,625
Share purchase warrant liabilities (note 15)		3,604		-
Current portion of long-term liabilities:
Deferred revenue (note 12)		4,171		4,656
Post-employment benefits (note 13)		120		120
Reclamation obligations (note 14)		1,181		1,181
Other liabilities (note 16)		188		179
		19,123		16,351
Non-Current
Deferred revenue (note 12)		29,542		31,852
Post-employment benefits (note 13)		1,099		1,154
Reclamation obligations (note 14)		32,907		36,351
Share purchase warrant liabilities (note 15)		-		20,337
Other liabilities (note 16)		371		329
Deferred income tax liability		6,372		7,219
Total liabilities		89,414		113,593

EQUITY
Share capital (note 17)		1,526,909		1,517,029
Contributed surplus (note 18)		68,815		67,496
Deficit		(1,163,134)		(1,189,610)
Accumulated other comprehensive income (note 19)		1,773		1,776
Total equity		434,363		396,691
Total liabilities and equity	$	523,777	$	510,284

Issued and outstanding common shares (in thousands) (note 17)		818,347		812,430
Commitments and contingencies (note 24)


The accompanying notes are integral to the condensed interim consolidated financial statements

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)
(Unaudited - Expressed in thousands of CAD dollars except for share and per share amounts)
		Three Months Ended June 30					Six Months Ended June 30
		2022		2021			2022			2021


REVENUES (note 21)	$	6,800	$	4,626		$	10,925		$	7,122

EXPENSES
Operating (notes 20 and 21)		(3,654)		(3,691)			(6,052)			(5,579)
Evaluation (note 21)		(6,616)		(6,381)			(11,081)			(9,142)
Exploration (note 21)		(1,060)		(528)			(3,626)			(1,876)
General and administrative (note 21)		(2,759)		(2,362)			(6,823)			(4,987)
Other income (expense) (note 20)		(7,481)		6,348			45,164			4,307
		(21,570)		(6,614)			17,582			(17,277)
Income (loss) before net finance expense		(14,770)		(1,988)			28,507			(10,155)
Finance expense, net (note 20)		(876)		(1,015)			(1,574)			(2,040)
Equity share of loss of joint venture (note 8)		(812)		-			(1,304)			-
Income (loss) before taxes		(16,458)		(3,003)			25,629			(12,195)
Income tax recovery - Deferred		311		646			847			954
Net income (loss) for the period	$	(16,147)	$	(2,357)		$	26,476		$	(11,241)

Other comprehensive income (loss) (note 19):
Items that are or may be subsequently reclassified to income (loss):
Foreign currency translation change		(6)		2			(3)			5
Comprehensive income (loss) for the period	$	(16,153)	$	(2,355)		$	26,473		$	(11,236)


Basic and diluted net income (loss) per share:
Basic	$	(0.02)	$	(0.00)	$		0.03	$		(0.01)
Diluted	$	(0.02)	$	(0.00)	$		0.03	$		(0.01)


Weighted-average number of shares outstanding (in thousands):
Basic		817,935		805,061			816,361			759,743
Diluted		817,935		805,061			826,425			759,743

The accompanying notes are integral to the condensed interim consolidated financial statements

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Unaudited - Expressed in thousands of CAD dollars)
		Six Months Ended June 30
		2022		2021

Share capital (note 17)
Balance-beginning of period	$	1,517,029	$	1,366,710
Shares issued for cash, net of issue costs		8,292		134,050
Other shares issued, net of issue costs		148		-
Share options exercised-cash		807		4,289
Share options exercised-transfer from contributed surplus		307		1,473
Share units exercised-transfer from contributed surplus		326		366
Balance-end of period		1,526,909		1,506,888

Contributed surplus
Balance-beginning of period		67,496		67,387
Share-based compensation expense (note 18)		1,952		1,295
Share options exercised-transfer to share capital		(307)		(1,473)
Share units exercised-transfer to share capital		(326)		(366)
Balance-end of period		68,815		66,843

Deficit
Balance-beginning of period		(1,189,610)		(1,208,587)
Net income (loss)		26,476		(11,241)
Balance-end of period		(1,163,134)		(1,219,828)

Accumulated other comprehensive income (note 19)
Balance-beginning of period		1,776		1,775
Foreign currency translation		(3)		5
Balance-end of period		1,773		1,780


Total Equity
Balance-beginning of period		396,691		227,285
Balance-end of period	$	434,363	$	355,683

The accompanying notes are integral to the condensed interim consolidated financial statements

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2022
(Unaudited - Expressed in CAD dollars except for shares and per share amounts)

		At June 30		At December 31
(in thousands)		2022		2021

Cash	$	1,215	$	2,002
Cash in MLJV and MWJV		1,216		1,275
Cash equivalents		54,408		60,721
	$	56,839	$	63,998

(in thousands)		Equity Instruments		Physical Uranium		Total Investments

Balance–December 31, 2021	$	14,578	$	133,114	$	147,692
Change in fair value to profit and (loss) (note 20)		(4,986)		29,579		24,593
Balance–June 30, 2022	$	9,592	$	162,693	$	172,285

	Number of		Warrant
(in thousands except warrant amounts)	Warrants		Liability

Balance–December 31, 2021	32,500,000	$	1,625
Change in fair value to (profit) and loss (note 20)	-		(1,170)
Balance–June 30, 2022	32,500,000	$	455

Restricted cash and investments-by item:
Elliot Lake reclamation trust fund	$	3,591	$	2,866
Letters of credit facility pledged assets		7,972		9,000
Letters of credit additional collateral		-		135
	$	11,563	$	12,001

		Plant and Equipment				Mineral		Total
(in thousands)		Owned		Right-of-Use		Properties		PP&E

Cost:
Balance–December 31, 2021	$	105,683	$	953	$	179,788	$	286,424
Additions		3,533		75		104		3,712
Disposal		(78)		(267)		-		(345)
Reclamation–Adjustment (note 14)		(3,303)		-		-		(3,303)
Balance–June 30, 2022	$	105,835	$	761	$	179,892	$	286,488

Accumulated amortization, depreciation:
Balance–December 31, 2021	$	(31,420)	$	(542)	$	-	$	(31,962)
Amortization		(92)		-		-		(92)
Depreciation		(1,795)		(77)		-		(1,872)
Disposal		42		267		-		309
Balance–June 30, 2022	$	(33,265)	$	(352)	$	-	$	(33,617)

Carrying value:
Balance–December 31, 2021	$	74,263	$	411	$	179,788	$	254,462
Balance–June 30, 2022	$	72,570	$	409	$	179,892	$	252,871

(in thousands)		Reclamation Obligations

Balance–December 31, 2021	$	37,532
Accretion (note 20)		713
MLJV site restoration–adjustment		(3,303)
Expenditures incurred		(854)
Balance–June 30, 2022	$	34,088

		Lease			Loan		Total Debt
(in thousands)			Liabilities		Liabilities		Obligations

Balance–December 31, 2021	$		452	$	56	$	508
Accretion (note 20)			17		-		17
Additions			58		82		140
Repayments			(93)		(13)		(106)
Balance–June 30, 2022	$		434	$	125	$	559

	Number of
	Common		Share
(in thousands except share amounts)	Shares		Capital

Balance–December 31, 2021	812,429,995	$	1,517,029
Issued for cash:
Shares issued for cash–total	4,238,600		8,563
Less: share issue costs	-		(271)
Other shares issued–total	99,850		183
Less: other share issue costs	-		(35)
Share option exercises	1,100,000		807
Share option exercises–transfer from contributed surplus	-		307
Share unit exercises–transfer from contributed surplus	478,503		326
	5,916,953		9,880
Balance–June 30, 2022	818,346,948	$	1,526,909

			Weighted-
			Average
			Exercise
	Number of		Price per
	Share		Share
	Options		(CAD)

Share options outstanding–December 31, 2021	9,449,895	$	0.86
Grants	1,573,000		1.84
Exercises(1)	(1,100,000)		0.73
Expiries	(26,000)		0.85
Forfeitures	(284,000)		1.13
Share options outstanding–June 30, 2022	9,612,895	$	1.03
Share options exercisable–June 30, 2022	6,156,395	$	0.73

	Weighted			Weighted-
	Average			Average
	Remaining			Exercise
Range of Exercise	Contractual	Number of		Price per
Prices per Share	Life	Share		Share
(CAD)	(Years)	Options		(CAD)

Share options outstanding
$ 0.25 to $ 0.49	2.71	1,840,000	$	0.45
$ 0.50 to $ 0.74	1.19	2,916,895		0.64
$ 0.75 to $ 0.99	-	-		-
$ 1.00 to $ 1.49	3.72	3,189,000		1.28
$ 1.50 to $ 1.99	4.69	1,551,000		1.84
$ 2.00 to $ 2.49	4.41	116,000		2.27
Stock options outstanding–June 30, 2022	2.92	9,612,895	$	1.03

					Six Months Ended
					June 30, 2022

Risk-free interest rate					1.44% - 2.82%
Expected stock price volatility					74.56% - 74.93%
Expected life					3.38 years - 3.42 years
Expected dividend yield					-
Fair value per share under options granted					$0.84 - $1.10

	RSUs			PSUs
			Weighted			Weighted
			Average			Average
	Number of		Fair Value	Number of		Fair Value
	Share		Per RSU	Share		Per PSU
	Units		(CAD)	Units		(CAD)

Units outstanding–December 31, 2021	5,801,841	$	0.80	1,530,000	$	0.62
Grants	1,242,000		2.08	120,000		2.08
Exercises (1)	(358,503)		0.78	(120,000)		0.38
Forfeitures	(181,749)		1.02	-		-
Units outstanding–June 30, 2022	6,503,589	$	1.04	1,530,000	$	0.75
Units vested–June 30, 2022	3,342,008	$	0.67	1,080,000	$	0.65

(in thousands)	Mining	Closed Mine Services	Corporate and Other	Total

Statement of Operations:
Revenues	6,962	3,963	-	10,925

Expenses:
Operating expenses	(2,521)	(3,531)	-	(6,052)
Evaluation	(11,081)	-	-	(11,081)
Exploration	(3,626)	-	-	(3,626)
General and administrative	(20)	-	(6,803)	(6,823)
	(17,248)	(3,531)	(6,803)	(27,582)
Segment income (loss)	(10,286)	432	(6,803)	(16,657)

Revenues–supplemental:
Environmental services	-	3,963	-	3,963
Toll milling services–deferred revenue (note 12)	3,976	-	-	3,976
Uranium concentrate sale	2,986	-	-	2,986
	6,962	3,963	-	10,925

Capital additions:
Property, plant and equipment	464	36	3,212	3,712

Long-lived assets:
Plant and equipment
Cost	95,810	4,218	6,568	106,596
Accumulated depreciation	(27,996)	(2,994)	(2,627)	(33,617)
Mineral properties	179,892	-	-	179,892
	247,706	1,224	3,941	252,871

				June 30		December 31
	Financial	Fair		2022		2021
	Instrument	Value		Fair		Fair
(in thousands)	Category(1)	Hierarchy		Value		Value

Financial Assets:
Cash and equivalents	Category B		$	56,839	$	63,998
Trade and other receivables	Category B			4,214		3,656
Investments
Equity instruments-shares	Category A	Level 1		9,514		14,349
Equity instruments-warrants	Category A	Level 2		78		229
Elliot Lake reclamation trust fund	Category B			3,591		2,866
Credit facility pledged assets	Category B			7,972		9,000
Reclamation letter of credit collateral	Category B			-		135
			$	82,208	$	94,233

Financial Liabilities:
Accounts payable and accrued liabilities	Category C			9,404		8,590
Debt obligations	Category C			559		508
Warrants on investment	Category A	Level 2		455		1,625
Share purchase warrant liabilities	Category A	Level 2		3,604		20,337
			$	14,022	$	31,060

TABLE OF CONTENTS
2022 SECOND QUARTER PERFORMANCE HIGHLIGHTS	2
ABOUT DENISON	2
RESULTS OF OPERATIONS	4
Wheeler River Project	6
LIQUIDITY AND CAPITAL RESOURCES	17
OUTLOOK FOR 2022	20
ADDITIONAL INFORMATION	21
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS	22

(in thousands)		As at June 30, 2022		As at December 31, 2021

Financial Position:
Cash and cash equivalents	$	56,839	$	63,998
Working capital(1)	$	63,405	$	76,785
Investments in uranium	$	162,693	$	133,114
Property, plant and equipment	$	252,871	$	254,462
Total assets	$	523,777	$	510,284
Total long-term liabilities(2)	$	70,291	$	97,242

		2021		2021		2020		2020
(in thousands, except for per share amounts)		Q2		Q1		Q4		Q3

Results of Operations:
Total revenues	$	4,626	$	2,496	$	4,094	$	2,743
Net loss	$	(2,357)	$	(8,884)	$	(3,095)	$	(5,482)
Basic and diluted loss per share	$	(0.00)	$	(0.01)	$	(0.01)	$	(0.01)

PROJECT EVALUATION ACTIVITIES
Property	Denison’s ownership(1)	Evaluation drilling(2)	Other activities
Wheeler River	95%	4,176.6 metres (9 PQ Wells)	ISR field testing, engineering, FS, metallurgical testing, environmental and sustainability activities
		5,523 m (14 holes)

EXPLORATION ACTIVITIES
Property	Denison’s ownership	Drilling in metres (m)(1)	Other activities
Candle	45.08%(2)	-	Geophysical Survey
Crawford Lake	100.00%	-	Geophysical Survey
Darby	60.10%(3)	-	Geophysical Survey
Ford Lake	100.00%	3,341 (7 holes)	-
Johnston Lake	100.00%	-	Geophysical Survey
Moon Lake South	75.00%	-	Geophysical Survey
Waterbury	66.90%	-	Geophysical Survey
McClean Lake	22.50%	5,862 (23 holes)	-
Midwest	25.17%	-	Geophysical Survey
Waterfound	24.68%(4)	4,653 (8 holes)	Geophysical Survey
Wolly	21.32%(5)	2,037 (9 holes)	Geophysical Survey

Total		15,893 (47 holes)

		Three Months Ended				Six Months Ended
		June 30,		June 30,		June 30,		June 30,
(in thousands)		2022		2021		2022		2021

Management Fee Revenue
Base and variable fees	$	-	$	571	$	-	$	1,046
Discretionary fees		-		210		-		350
Commission fees		-		697		-		697
	$	-	$	1,478	$	-	$	2,093

(in thousands)	PREVIOUS 2022 OUTLOOK	CURRENT 2022 OUTLOOK	Actual to June, 2022(2)
Mining Segment
Mineral Sales	2,775	2,736	2,736
Development & Operations	(1,704)	(1,704)	(789)
Exploration	(7,213)	(7,503)	(3,706)
Evaluation	(23,544)	(25,820)	(11,673)
JCU Cash Contributions	(859)	(964)	-
	(30,545)	(33,255)	(13,432)
Closed Mines Segment
Closed Mines Environmental Services	1,185	1,185	477
	1,185	1,185	477
Corporate and Other Segment
Corporate Administration & Other	(9,477)	(9,032)	(5,014)
	(9,477)	(9,032)	(5,014)
Total(1)	$ (38,837)	$ (41,102)	$ (17,969)

David Cates	(416) 979-1991 ext. 362
President and Chief Executive Officer

Mac McDonald	(416) 979-1991 ext. 242
Exec. Vice President & Chief Financial Officer

Follow Denison on Twitter	@DenisonMinesCo