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

About this 6-K

Denison Mines Corp. (DNN)

6-K 2022-05-05 For: 2022-05-04

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Added on April 07, 2026

DENISON MINES CORP.

/s/ Amanda Willett

Date: May 5, 2022

Amanda Willett

Vice President Legal and Corporate Secretary

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

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Exhibit Number		Description

99.1		Interim Consolidated Financial Statements for the period ended March 31, 2022
99.2		Management's Discussion and Analysis for the three months ended March 31, 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 May 4, 2022

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

ASSETS
Current
Cash and cash equivalents (note 4)	$	65,290	$	63,998
Trade and other receivables (note 5)		3,164		3,656
Inventories (note 6)		3,271		3,454
Investments-equity instruments (note 7)		18,615		14,437
Prepaid expenses and other		1,723		1,310
		92,063		86,855
Non-Current
Inventories-ore in stockpiles (note 6)		2,098		2,098
Investments-equity instruments (note 7)		238		141
Investments-uranium (note 7)		180,870		133,114
Investments-joint venture (note 8)		20,900		21,392
Prepaid expenses and other		166		221
Restricted cash and investments (note 9)		12,986		12,001
Property, plant and equipment (note 10)		253,377		254,462
Total assets	$	562,698	$	510,284

LIABILITIES
Current
Accounts payable and accrued liabilities (note 11)	$	12,616	$	8,590
Warrants on investment (note 7)		2,763		1,625
Share purchase warrant liabilities (note 15)		20,821		-
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)		186		179
		41,858		16,351
Non-Current
Deferred revenue (note 12)		30,308		31,852
Post-employment benefits (note 13)		1,111		1,154
Reclamation obligations (note 14)		33,141		36,351
Share purchase warrant liabilities (note 15)		-		20,337
Other liabilities (note 16)		382		329
Deferred income tax liability		6,683		7,219
Total liabilities		113,483		113,593

EQUITY
Share capital (note 17)		1,526,394		1,517,029
Contributed surplus (note 18)		68,029		67,496
Deficit		(1,146,987)		(1,189,610)
Accumulated other comprehensive income (note 19)		1,779		1,776
Total equity		449,215		396,691
Total liabilities and equity	$	562,698	$	510,284

Issued and outstanding common shares (in thousands) (note 17)		817,767		812,430
Commitments and contingencies (note 24)
Subsequent events (note 25)

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 March 31
			2022			2021


REVENUES (note 21)		$	4,125		$	2,496

EXPENSES
Operating (notes 20 and 21)			(2,398)			(1,888)
Evaluation (note 21)			(4,465)			(2,761)
Exploration (note 21)			(2,566)			(1,348)
General and administrative (note 21)			(4,064)			(2,625)
Other income (expense) (note 20)			52,645			(2,041)
			39,152			(10,663)
Income (loss) before net finance expense			43,277			(8,167)
Finance expense, net (note 20)			(698)			(1,025)
Equity share of loss of joint venture (note 8)			(492)			-
Income (loss) before taxes			42,087			(9,192)
Income tax recovery
Deferred			536			308
Net income (loss) for the period		$	42,623		$	(8,884)

Other comprehensive income (loss) (note 19):
Items that are or may be subsequently reclassified to income (loss):
Foreign currency translation change			3			3
Comprehensive income (loss) for the period		$	42,626		$	(8,881)


Basic and diluted net income (loss) per share:
Basic	$		0.05	$		(0.01)
Diluted		$	0.05		$	(0.01)


Weighted-average number of shares outstanding (in thousands):
Basic			814,788			714,424
Diluted			825,148			714,424

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)
		Three Months Ended March 31
		2022		2021


Share capital (note 17)
Balance-beginning of period	$	1,517,029	$	1,366,710
Shares issued for cash, net of issue costs		8,241		134,083
Other shares issued, net of issue costs		39		-
Share options exercised-cash		688		3,711
Share options exercised-transfer from contributed surplus		254		1,266
Share units exercised-transfer from contributed surplus		143		167
Balance-end of period		1,526,394		1,505,937

Contributed surplus
Balance-beginning of period		67,496		67,387
Share-based compensation expense (note 18)		930		375
Share options exercised-transfer to share capital		(254)		(1,266)
Share units exercised-transfer to share capital		(143)		(167)
Balance-end of period		68,029		66,329

Deficit
Balance-beginning of period		(1,189,610)		(1,208,587)
Net income (loss)		42,623		(8,884)
Balance-end of period		(1,146,987)		(1,217,471)

Accumulated other comprehensive income (note 19)
Balance-beginning of period		1,776		1,775
Foreign currency translation		3		3
Balance-end of period		1,779		1,778


Total Equity
Balance-beginning of period		396,691		227,285
Balance-end of period	$	449,215	$	356,573

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

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2022
(Unaudited - Expressed in CAD dollars except for shares and per share amounts)

		At March 31		At December 31
(in thousands)		2022		2021

Cash	$	1,747	$	2,002
Cash in MLJV and MWJV		1,205		1,275
Cash equivalents		62,338		60,721
	$	65,290	$	63,998

(in thousands)		Equity Instruments		Physical Uranium		Total Investments

Balance–December 31, 2021	$	14,578	$	133,114	$	147,692
Fair value gain to profit and loss (note 20)		4,275		47,756		52,031
Balance–March 31, 2022	$	18,853	$	180,870	$	199,723

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

Balance–December 31, 2021	32,500,000	$	1,625
Change in fair value (note 20)	-		1,138
Balance–March 31, 2022	32,500,000	$	2,763

		At March 31		At December 31,
(in thousands)		2022		2021

Total current assets(1)	$	4,551	$	4,851
Total non-current assets		38,067		38,067
Total current liabilities		(818)		(134)
Total non-current liabilities		-		-
Total net assets	$	41,800	$	42,784

				Three Month Ended March 31, 2022(2)


Revenue			$	-
Net loss				(984)
Other comprehensive income			$	-


Reconciliation of JCU net assets to Denison investment carrying value:
Adjusted net assets of JCU–at December 31, 2021			$	42,784
Net loss				(984)
Adjusted net assets of JCU–at March 31, 2022			$	41,800
Denison ownership interest				50.00%
Denison share of adjusted net assets of JCU				20,900
Investment in JCU			$	20,900

Restricted cash and investments-by item:
Elliot Lake reclamation trust fund	$	3,851	$	2,866
Letters of credit facility pledged assets		9,000		9,000
Letters of credit additional collateral		135		135
	$	12,986	$	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		2,983		39		11		3,033
Reclamation–Adjustment (note 14)		(3,303)		-		-		(3,303)
Balance–March 31, 2022	$	105,363	$	992	$	179,799	$	286,154

Accumulated amortization, depreciation:
Balance–December 31, 2021	$	(31,420)	$	(542)	$	-	$	(31,962)
Amortization		(46)		-		-		(46)
Depreciation		(725)		(44)		-		(769)
Balance–March 31, 2022	$	(32,191)	$	(586)	$	-	$	(32,777)

Carrying value:
Balance–December 31, 2021	$	74,263	$	411	$	179,788	$	254,462
Balance–March 31, 2022	$	73,172	$	406	$	179,799	$	253,377

		At March 31		At December 31
(in thousands)		2022		2021

Uranium concentrates	$	440	$	451
Inventory of ore in stockpiles		2,098		2,098
Mine and mill supplies in MLJV		2,831		3,003
	$	5,369	$	5,552

Inventories-by balance sheet presentation:
Current	$	3,271	$	3,454
Long-term-ore in stockpiles		2,098		2,098
	$	5,369	$	5,552

		At March 31		At December 31
(in thousands)		2022		2021

Reclamation obligations-by location:
Elliot Lake	$	20,826	$	20,877
McClean and Midwest Joint Ventures		12,234		15,405
Other		1,262		1,250
	$	34,322	$	37,532

Reclamation obligations-by balance sheet presentation:
Current	$	1,181	$	1,181
Non-current		33,141		36,351
	$	34,322	$	37,532

(in thousands)		Reclamation Obligations

Balance–December 31, 2021	$	37,532
Accretion (note 20)		357
MLJV site restoration–adjustment		(3,303)
Expenditures incurred		(264)
Balance–March 31, 2022	$	34,322

		Lease			Loan		Total Debt
(in thousands)			Liabilities		Liabilities		Obligations

Balance–December 31, 2021	$		452	$	56	$	508
Accretion (note 20)			9		-		9
Additions			29		82		111
Repayments			(54)		(6)		(60)
Balance–March 31, 2022	$		436	$	132	$	568

	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	4,149,600		8,412
Less: share issue costs	-		(171)
Other share issue–total	30,797		49
Less: other share issue costs	-		(10)
Share option exercises	978,000		688
Share option exercises–transfer from contributed surplus	-		254
Share unit exercises–transfer from contributed surplus	178,585		143
	5,336,982		9,365
Balance–March 31, 2022	817,766,977	$	1,526,394

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

Share options outstanding–December 31, 2021	9,449,895	$	0.86
Grants	1,564,000		1.84
Exercises (1)	(978,000)		0.70
Expiries	(26,000)		0.85
Forfeitures	(261,000)		1.09
Share options outstanding–March 31, 2022	9,748,895	$	1.03
Share options exercisable–March 31, 2022	6,129,395	$	0.72

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

Share options outstanding
$ 0.25 to $ 0.49	2.96	1,882,500	$	0.45
$ 0.50 to $ 0.74	1.44	2,916,895		0.64
$ 0.75 to $ 0.99	-	-		-
$ 1.00 to $ 1.49	3.97	3,281,500		1.28
$ 1.50 to $ 1.99	4.94	1,552,000		1.84
$ 2.00 to $ 2.49	4.66	116,000		2.27
Stock options outstanding–March 31, 2022	3.18	9,748,895	$	1.03

					Three Months Ended
					March 31, 2022

Risk-free interest rate					1.44% - 1.77%
Expected stock price volatility					74.56% - 74.72%
Expected life					3.4 years
Expected dividend yield					-
Fair value per share under options granted					$0.96 - $1.10

	RSUs			PSUs
			Weighted			Weighted
			Average			Average
	Number of		Fair Value	Number of		Fair Value
	Common		Per RSU	Common		Per PSU
	Shares		(CAD)	Shares		(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)	(178,585)		0.87	-		-
Forfeitures	(144,500)		1.10	-		-
Units outstanding–March 31, 2022	6,720,756	$	1.06	1,650,000	$	0.72
Units vested–March 31, 2022	3,333,760	$	0.67	870,000	$	0.63

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

Statement of Operations:
Revenues	2,471	1,654	-	4,125

Expenses:
Operating expenses	(725)	(1,656)	(17)	(2,398)
Evaluation	(4,465)	-	-	(4,465)
Exploration	(2,566)	-	-	(2,566)
General and administrative	(14)	-	(4,050)	(4,064)
	(7,770)	(1,656)	(4,067)	(13,493)
Segment income (loss)	(5,299)	(2)	(4,067)	(9,368)

Revenues–supplemental:
Environmental services	-	1,654	-	1,654
Toll milling services–deferred revenue (note 12)	2,471	-	-	2,471
	2,471	1,654	-	4,125

Capital additions:
Property, plant and equipment	146	13	2,874	3,033

Long-lived assets:
Plant and equipment
Cost	98,017	4,195	4,143	106,355
Accumulated depreciation	(29,270)	(2,952)	(555)	(32,777)
Mineral properties	179,799	-	-	179,799
	248,546	1,243	3,588	253,377

				March 31		December 31,
	Financial	Fair		2022		2021
	Instrument	Value		Fair		Fair
(in thousands)	Category(1)	Hierarchy		Value		Value

Financial Assets:
Cash and equivalents	Category B		$	65,290	$	63,998
Trade and other receivables	Category B			3,164		3,656
Investments
Equity instruments-shares	Category A	Level 1		18,461		14,349
Equity instruments-warrants	Category A	Level 2		392		229
Elliot Lake reclamation trust fund	Category B			3,851		2,866
Credit facility pledged assets	Category B			9,000		9,000
Reclamation letter of credit collateral	Category B			135		135
			$	100,293	$	94,233

Financial Liabilities:
Accounts payable and accrued liabilities	Category C			12,616		8,590
Debt obligations	Category C			568		508
Warrants on investment	Category A	Level 2		2,763		1,625
Share purchase warrant liabilities	Category A	Level 2		20,821		20,337
			$	36,768	$	31,060

TABLE OF CONTENTS
Q1 2022 PERFORMANCE HIGHLIGHTS	2
ABOUT DENISON	3
RESULTS OF OPERATIONS	4
Wheeler River Uranium Project	6
LIQUIDITY AND CAPITAL RESOURCES	15
OUTLOOK FOR 2022	19
ADDITIONAL INFORMATION	20
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS	21

(in thousands)		As at March 31, 2022		As at December 31, 2021

Financial Position:
Cash and cash equivalents	$	65,290	$	63,998
Working capital(1)	$	77,960	$	76,785
Investments in uranium	$	180,870	$	133,114
Property, plant and equipment	$	253,377	$	254,462
Total assets	$	562,698	$	510,284
Total long-term liabilities(2)	$	71,625	$	97,242

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

Total revenues	$	2,496	$	4,094	$	2,743	$	2,926
Net loss	$	(8,884)	$	(3,095)	$	(5,482)	$	(1,043)
Basic and diluted loss per share	$	(0.01)	$	(0.01)	$	(0.01)	$	(0.00)

PROJECT EVALUATION ACTIVITIES
Property	Denison’s ownership(1)	Evaluation drilling(2)	Other activities
Wheeler River	95%	2,509.9 metres (6 PQ Wells)	ISR Field Testing, Engineering, Metallurgical testing, Environmental and Sustainability activities

EXPLORATION & EVALUATION ACTIVITIES
Property	Denison’s ownership	Drilling in metres (m)(1)	Other activities
Crawford Lake	100.00%	-	Geophysical Survey
Ford Lake	100.00%	3,341 (7 holes)	-
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%(2)	3,175 (6 holes)	Geophysical Survey
Wolly	21.32%(3)	2,037 (9 holes)	Geophysical Survey

Total		14,415 (45 holes)

	Three Months Ended
		March 31,		March 31,
(in thousands)		2022		2021

Management Fee Revenue
Base and variable fees	$	-	$	475
Discretionary fees		-		140
	$	-	$	615

(in thousands)	2022 BUDGET	CURRENT 2022 OUTLOOK	Actual to March 31, 2022(2)
Mining Segment
Mineral Sales	2,044	2,775	-
Development & Operations	(1,704)	(1,704)	(383)
Exploration	(7,213)	(7,213)	(2,544)
Evaluation	(20,356)	(23,544)	(4,491)
JCU Cash Contributions	(713)	(859)	-
	(27,942)	(30,545)	(7,418)
Closed Mines Segment
Closed Mines Environmental Services	1,185	1,185	44
	1,185	1,185	44
Corporate and Other Segment
Corporate Administration & Other	(9,477)	(9,477)	(3,379)
	(9,477)	(9,477)	(3,379)
Total(1)	$ (36,234)	$ (38,837)	$ (10,753)

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