Denison Mines Corp 6-K, filed May 11, 2023

About this 6-K

Denison Mines Corp. (DNN)

6-K 2023-05-11 For: 2023-05-10

View Original

Added on April 07, 2026

DENISON MINES CORP.

/s/ Amanda Willett

Date: May 11, 2023

Amanda Willett

Vice President Legal and Corporate Secretary

Denison Mines Corp filed this 6-K on May 11, 2023.

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →

Exhibit Number		Description

99.1		Interim Consolidated Financial Statements for the period ended March 31, 2023
99.2		Management's Discussion and Analysis for the three months ended March 31, 2023
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 10, 2023

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Unaudited - Expressed in thousands of Canadian dollars (“CAD”) except for share amounts)
		At March 31 2023		At December 31 2022
ASSETS
Current
Cash and cash equivalents (note 4)	$	57,462	$		50,915
Trade and other receivables (note 5)		4,183		4,143
Inventories (note 6)		2,768		2,713
Investments-equity instruments (note 7)		9,192		8,022
Prepaid expenses and other		1,687		1,367
		75,292		67,160
Non-Current
Inventories-ore in stockpiles (note 6)		2,098		2,098
Investments-equity instruments (note 7)		83		87
Investments-uranium (note 7)		171,362		162,536
Investments-joint venture (note 8)		18,411		19,305
Restricted cash and investments (note 9)		11,789		11,105
Property, plant and equipment (note 10)		253,208		253,505
Total assets	$	532,243	$	515,796
LIABILITIES
Current
Accounts payable and accrued liabilities (note 11)	$	10,703	$	10,299
Current portion of long-term liabilities:
Deferred revenue (note 12)		4,536		4,915
Post-employment benefits (note 13)		120		120
Reclamation obligations (note 14)		2,681		2,865
Other liabilities (note 16)		223		216
		18,263		18,415
Non-Current
Deferred revenue (note 12)		30,962		28,380
Post-employment benefits (note 13)		1,054		1,081
Reclamation obligations (note 14)		26,871		26,594
Other liabilities (note 16)		339		360
Deferred income tax liability		4,453		4,950
Total liabilities		81,942		79,780
EQUITY
Share capital (note 17)		1,554,991		1,539,209
Contributed surplus (note 18)		71,180		70,281
Deficit		(1,177,656)		(1,175,256)
Accumulated other comprehensive income (note 19)		1,786		1,782
Total equity		450,301		436,016
Total liabilities and equity	$	532,243	$	515,796
Issued and outstanding common shares (note 17)		835,381,534		826,325,592
Commitments and contingencies (note 24)
The accompanying notes are an integral part of 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
			2023		2022


REVENUES (note 21)	$	1,084		$		4,125

EXPENSES
Operating expenses (note 20 and 21)		(2,560)				(2,398)
Exploration (note 21)		(3,947)				(2,566)
Evaluation (note 21)		(2,722)				(4,465)
General and administrative (note 21)		(3,254)				(4,064)
Other income (note 20)		10,246				52,645
		(2,237)				39,152
Income (loss) before net finance expense, equity accounting		(1,153)				43,277

Finance expense, net (note 20)		(850)				(698)
Equity share of loss of joint venture (note 8)		(894)				(492)
Income (loss) before taxes		(2,897)				42,087
Income tax recovery:
Deferred		497				536
Net income (loss) for the period	$	(2,400)		$		42,623

Other comprehensive income (loss) (note 19):
Items that are or may be subsequently reclassified to income (loss):
Foreign currency translation change		4				3
Comprehensive income (loss) for the period	$	(2,396)		$		42,626


Basic and diluted net income (loss) per share:
Basic	$	0.00		$		0.05
Diluted	$	0.00		$		0.05


Weighted-average number of shares outstanding (in thousands):
Basic			832,826				814,788
Diluted		832,826				825,148

The accompanying notes are an integral part of the condensed interim consolidated financial statements

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited - Expressed in thousands of CAD dollars)
		Three Month Ended March 31
		2023		2022

Share capital (note 17)
Balance-beginning of period	$	1,539,209	$	1,517,029
Shares issued for cash, net of issue costs		15,298		8,241
Other shares issued, net of issue costs		-		39
Share options exercised-cash		339		688
Share options exercised-transfer from contributed surplus		129		254
Share units exercised-transfer from contributed surplus		16		143
Balance-end of period		1,554,991		1,526,394

Contributed surplus
Balance-beginning of period		70,281		67,496
Share-based compensation expense (note 18)		1,044		930
Share options exercised-transfer to share capital		(129)		(254)
Share units exercised-transfer to share capital		(16)		(143)
Balance-end of period		71,180		68,029

Deficit
Balance-beginning of period		(1,175,256)		(1,189,610)
Net income (loss)		(2,400)		42,623
Balance-end of period		(1,177,656)		(1,146,987)

Accumulated other comprehensive income (note 19)
Balance-beginning of period		1,782		1,776
Foreign currency translation		4		3
Balance-end of period		1,786		1,779

Total Equity
Balance-beginning of period	$	436,016	$	396,691
Balance-end of period	$	450,301	$	449,215

The accompanying notes are an integral part of the condensed interim consolidated financial statements

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2023
(Unaudited - Expressed in CAD dollars except for shares and per share amounts)

		At March 31		At December 31
(in thousands)		2023		2022

Cash	$	2,680	$	1,801
Cash in MLJV and MWJV		1,299		1,263
Cash equivalents		53,483		47,851
	$	57,462	$	50,915


Investments-by balance sheet presentation:
Current	$	9,192	$	8,022
Long-term		171,445		162,623
	$	180,637	$	170,645

(in thousands)		Equity Instruments		Physical Uranium		Total Investments

Balance-December 31, 2022	$	8,109	$	162,536	$	170,645
Change in fair value gain to profit (note 20)		1,166		8,826		9,992
Balance-March 31, 2023	$	9,275	$	171,362	$	180,637

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

Balance-December 31, 2022	32,500,000	$	-
Change in fair value to profit and (loss) (note 20)	-		-
Balance-March 31, 2023	32,500,000	$	-

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

Cost:
Balance-December 31, 2022	$	108,068	$	763	$	180,219	$	289,050
Additions (note 21)		321		34		381		736
Disposals		(157)		(28)		-		(185)
Balance-March 31, 2023	$	108,232	$	769	$	180,600	$	289,601

Accumulated amortization, depreciation:
Balance-December 31, 2022	$	(35,150)	$	(395)	$	-	$	(35,545)
Amortization		(47)		-		-		(47)
Depreciation (note 20)		(950)		(35)		-		(985)
Disposals		157		27		-		184
Balance-March 31, 2023	$	(35,990)	$	(403)	$	-	$	(36,393)

Carrying value:
Balance-December 31, 2022	$	72,918	$	368	$	180,219	$	253,505
Balance-March 31, 2023	$	72,242	$	366	$	180,600	$	253,208

(in thousands)		Deferred Revenue

Balance-December 31, 2022	$	33,295
Revenue reversed during the period (note 21)		982
Accretion (note 20)		1,221
Balance-March 31, 2023	$	35,498

		Lease			Loan		Total Debt
(in thousands)			Liabilities		Liabilities		Obligations

Balance-December 31, 2022	$		396	$	180	$	576
Accretion (note 20)			7		-		7
Additions (note 10)			34		-		34
Repayments			(42)		(12)		(54)
Liability adjustment gain			(1)		-		(1)
Balance-March 31, 2023	$		394	$	168	$	562

		At March 31		At December 31
(in thousands)		2023		2022

Cash and cash equivalents	$	3,817	$	3,133
Investments		7,972		7,972
	$	11,789	$	11,105

Restricted cash and investments-by item:
Elliot Lake reclamation trust fund	$	3,817	$	3,133
Letters of credit facility pledged assets		7,972		7,972
	$	11,789	$	11,105

		Lease			Loan		Total Debt
(in thousands)			Liabilities		Liabilities		Obligations

Maturity analysis-contractual undiscounted cash flows:
Next 12 months	$		168	$	55	$	223
One to five years			269		122		391
More than five years			-		-		-
Total obligation-end of period-undiscounted			437		177		614
Present value discount adjustment			(43)		(9)		(52)
Total obligation-end of period-discounted	$		394	$	168	$	562

	2023
			Weighted
			Average
			Exercise
	Number of Common		Price per Share
	Shares		(CAD)

Share options outstanding-December 31, 2022	8,539,214	$	1.09
Grants	1,726,000		1.49
Exercises (1)	(554,214)		0.61
Expiries	(24,000)		0.60
Forfeitures	(182,000)		1.03
Share options outstanding-March 31, 2023	9,505,000	$	1.19
Share options exercisable-March 31, 2023	6,435,003	$	0.99

	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	1.94	1,697,500	$	0.46
$ 0.50 to $ 0.74	1.00	1,308,500		0.68
$ 0.75 to $ 0.99	-	-		-
$ 1.00 to $ 1.49	3.68	4,808,000		1.36
$ 1.50 to $ 1.99	3.97	1,575,000		1.81
$ 2.00 to $ 2.49	3.66	116,000		2.27
Share options outstanding-March 31, 2023	3.05	9,505,000	$	1.19

					Three Months Ended
					March 31, 2023

Risk-free interest rate					3.95%
Expected stock price volatility					72.86%
Expected life					3.43 years
Expected dividend yield					-
Fair value per options granted					$0.80

	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, 2022	6,416,089	$	1.04	1,470,000	$	0.77
Grants	1,377,000		1.49	-		-
Exercises (1)	(20,668)		0.79	-		-
Forfeitures	(46,667)		1.76	-		-
Units outstanding–March 31, 2023	7,725,754	$	1.12	1,470,000	$	0.77
Units vested–March 31, 2023	4,778,171	$	0.82	1,200,000	$	0.79

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

Statement of Operations:
Revenues	$	(982)	2,066	-	1,084

Expenses:
Operating expenses		(754)	(1,806)	-	(2,560)
Exploration		(3,947)	-	-	(3,947)
Evaluation		(2,722)	-	-	(2,722)
General and administrative		(19)	-	(3,235)	(3,254)
		(7,442)	(1,806)	(3,235)	(12,483)
Segment income (loss)	$	(8,424)	260	(3,235)	(11,399)

Revenues-supplemental:
Environmental services	$	-	2,066	-	2,066
Toll milling services-deferred revenue (note 12)		(982)	-	-	(982)
	$	(982)	2,066	-	1,084

Capital additions:
Property, plant and equipment (note 10)	$	400	60	276	736

Long-lived assets:
Plant and equipment
Cost	$	98,907	4,289	5,805	109,001
Accumulated depreciation		(32,731)	(2,878)	(784)	(36,393)
Mineral properties		180,600	-	-	180,600
	$	246,776	1,411	5,021	253,208

(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

	Financial	Fair		March 31,		December 31,
	Instrument	Value		2023		2022
(in thousands)	Category(1)	Hierarchy		Fair Value		Fair Value

Financial Assets:
Cash and equivalents	Category B		$	57,462	$	50,915
Trade and other receivables	Category B			4,183		4,143
Investments
Equity instruments-shares	Category A	Level 1		9,192		8,022
Equity instruments-warrants	Category A	Level 2		83		87
Restricted cash and equivalents
Elliot Lake reclamation trust fund	Category B			3,817		3,133
Credit facility pledged assets	Category B			7,972		7,972
			$	82,709	$	74,272

Financial Liabilities:
Account payable and accrued liabilities	Category C			10,703		10,299
Debt obligations	Category C			562		576
			$	11,265	$	10,875


TABLE OF CONTENTS
Q1 2023 PERFORMANCE HIGHLIGHTS	2
ABOUT DENISON	2
RESULTS OF OPERATIONS	4
Wheeler River Uranium Project	5
LIQUIDITY AND CAPITAL RESOURCES	15
OUTLOOK FOR 2023	17
ADDITIONAL INFORMATION	17
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS	18

(in thousands)		As at March 31, 2023		As at December 31, 2022

Financial Position:
Cash and cash equivalents	$	57,462	$	50,915
Working capital(1)	$	61,565	$	53,660
Investments in uranium	$	171,362	$	162,536
Property, plant and equipment	$	253,208	$	253,505
Total assets	$	532,243	$	515,796
Total long-term liabilities(2)	$	63,679	$	61,365

		2022		2021		2021		2021
(in thousands, except for per share amounts)		Q1		Q4		Q3		Q2

Total revenues	$	4,125	$	3,337	$	9,541	$	4,626
Net earnings (loss)	$	42,623	$	(2,648)	$	32,866	$	(2,357)
Basic and diluted earnings (loss) per share	$	0.05	$	(0.01)	$	0.04	$	(0.00)

PROJECT EVALUATION ACTIVITIES
Property	Denison’s ownership	Evaluation activities
Wheeler River	95%(1)	Engineering, FS, metallurgical testing, FFT care and maintenance, environmental and sustainability activities, Environmental Impact Study (‘EIS’) regulatory reviews.
Waterbury Lake	67.41%(2)	Project planning, procurement of long lead time materials for 2023 field activities.
Midwest	25.17%	Project planning, Preliminary geological and hydrogeological modelling activities.

EXPLORATION ACTIVITIES
Property	Denison’s ownership	Drilling in metres (m)(1)	Other activities
Bell Lake	100.00%	-	Geophysical Survey
Johnston Lake	100.00%	-	Geophysical Survey
Moon Lake	100.00%	627 (1 hole)	-
Moon Lake South	75.00%	3,306 (6 holes)	-
Waterfound	24.68%(2)	6,004 (10 holes)	-
Wheeler River	95.00%(3)	3,034 (5 holes)	Geophysical Survey

Total		12,971 (22 holes)

MINERALIZED DRILL RESULTS FOR 2022 WHEELER RIVER WINTER EXPLORATION DRILLING
Hole Number	Orientation (azi./dip)	From (m)	To (m)	Length(1) (m)	Grade (% eU3O8)(2)
WR-810A(3)	282°/-74.2°	568.5	569.5	1.0	1.27
WR-811A(3)	282°/-70.8°	537.5	541.5	4.0	0.61
including(4)	-	539.9	540.9	1.0	1.43

(in thousands)	2023 BUDGET	Actual to March 31, 2023(2)
Mining Segment
Development & Operations	(1,695)	(322)
Exploration	(7,964)	(3,916)
Evaluation	(27,260)	(3,025)
JCU Cash Contributions	(3,146)	-
	(40,065)	(7,263)
Closed Mines Segment
Closed Mines Environmental Services	873	287
	873	287
Corporate and Other Segment
Corporate Administration & Other	(4,476)	(1,810)
	(4,476)	(1,810)
Total(1)	$ (43,668)	$ (8,786)

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