Denison Mines Corp 6-K, filed Nov 9, 2023

About this 6-K

Denison Mines Corp. (DNN)

6-K 2023-11-09 For: 2023-11-08

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Added on April 07, 2026

DENISON MINES CORP.

/s/ Amanda Willett

Date: November 8, 2023

Amanda Willett

Vice President Legal and Corporate Secretary

Denison Mines Corp filed this 6-K on November 9, 2023.

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Exhibit Number		Description

99.1		Interim Consolidated Financial Statements for the period ended September 30, 2023
99.2		Management's Discussion and Analysis for the three months ended September 30, 2023
99.3		Form 51-102F2 Certification of Interim Filings - CEO
99.4		Form 51-102F2 Certification of Interim Filings - CFO

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Unaudited - Expressed in thousands of Canadian dollars (“CAD”) except for share amounts)
		At September 30 2023		At December 31 2022
ASSETS
Current
Cash and cash equivalents (note 4)	$	60,839	$	50,915
Trade and other receivables (note 5)		5,648		4,143
Inventories (note 6)		3,296		2,713
Investments-equity instruments (note 7)		12,935		8,022
Investments-uranium (note 7)		9,938		-
Prepaid expenses and other		756		1,367
		93,412		67,160
Non-Current
Inventories-ore in stockpiles (note 6)		2,098		2,098
Investments-equity instruments (note 7)		236		87
Investments-uranium (note 7)		238,507		162,536
Investments-joint venture (note 8)		17,470		19,305
Restricted cash and investments (note 9)		11,374		11,105
Property, plant and equipment (note 10)		250,914		253,505
Total assets	$	614,011	$	515,796
LIABILITIES
Current
Accounts payable and accrued liabilities (note 11)	$	10,991	$	10,299
Current portion of long-term liabilities:
Deferred revenue (note 12)		4,914		4,915
Post-employment benefits (note 13)		120		120
Reclamation obligations (note 14)		1,420		2,865
Other liabilities (note 16)		221		216
		17,666		18,415
Non-Current
Deferred revenue (note 12)		30,344		28,380
Post-employment benefits (note 13)		1,028		1,081
Reclamation obligations (note 14)		27,261		26,594
Other liabilities (note 16)		245		360
Deferred income tax liability		3,255		4,950
Total liabilities		79,799		79,780
EQUITY
Share capital (note 17)		1,581,562		1,539,209
Contributed surplus (note 18)		70,211		70,281
Deficit		(1,119,358)		(1,175,256)
Accumulated other comprehensive income (note 19)		1,797		1,782
Total equity		534,212		436,016
Total liabilities and equity	$	614,011	$	515,796
Issued and outstanding common shares (note 17)		851,532,538		826,325,592
Commitments and contingencies (note 24) Subsequent events (note 25)
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 September 30				Nine Months Ended September 30
		2023		2022		2023		2022


REVENUES (note 21)	$	2,770	$	3,043	$	7,345	$	13,968

EXPENSES
Operating expenses (note 20 and 21)		(2,491)		(2,546)		(8,058)		(8,598)
Exploration (note 21)		(2,052)		(1,549)		(7,833)		(5,175)
Evaluation (note 21)		(5,217)		(6,730)		(12,601)		(17,811)
General and administrative (note 21)		(2,999)		(2,652)		(9,462)		(9,475)
Other income (note 20)		68,086		4,646		90,332		49,810
		55,327		(8,831)		52,378		8,751
Income (loss) before net finance expense, equity accounting		58,097		(5,788)		59,723		22,719

Finance expense, net (note 20)		(418)		(668)		(1,706)		(2,242)
Equity share of loss of joint venture (note 8)		(459)		(945)		(3,814)		(2,249)
Income (loss) before taxes		57,220		(7,401)		54,203		18,228
Income tax recovery:
Deferred		1,017		1,018		1,695		1,865
Net income (loss) for the period	$	58,237	$	(6,383)	$	55,898	$	20,093

Other comprehensive income (loss) (note 19):
Items that are or may be subsequently reclassified to income (loss):
Foreign currency translation change		(114)		(8)		15		(11)
Comprehensive income (loss) for the period	$	58,123	$	(6,391)	$	55,913	$	20,082


Basic and diluted net income (loss) per share:
Basic	$	0.07	$	(0.01)	$	0.07	$	0.02
Diluted	$	0.07	$	(0.01)	$	0.07	$	0.02


Weighted-average number of shares outstanding (in thousands):
Basic		840,036		819,228		836,174		817,317
Diluted		847,684		819,228		843,306		827,555

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)
		Nine Months Ended September 30
		2023		2022

Share capital (note 17)
Balance-beginning of period	$	1,539,209	$	1,517,029
Shares issued for cash, net of issue costs		37,042		14,853
Other shares issued, net of issue costs		193		169
Share options exercised-cash		2,362		827
Share options exercised-transfer from contributed surplus		981		316
Share units exercised-transfer from contributed surplus		1,775		351
Balance-end of period		1,581,562		1,533,545

Contributed surplus
Balance-beginning of period		70,281		67,496
Share-based compensation expense (note 18)		2,686		2,934
Share options exercised-transfer to share capital		(981)		(316)
Share units exercised-transfer to share capital		(1,775)		(351)
Balance-end of period		70,211		69,763

Deficit
Balance-beginning of period		(1,175,256)		(1,189,610)
Net income		55,898		20,093
Balance-end of period		(1,119,358)		(1,169,517)

Accumulated other comprehensive income (note 19)
Balance-beginning of period		1,782		1,776
Foreign currency translation		15		(11)
Balance-end of period		1,797		1,765

Total Equity
Balance-beginning of period	$	436,016	$	396,691
Balance-end of period	$	534,212	$	435,556

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

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023
(Unaudited - Expressed in CAD dollars except for shares and per share amounts)

		At September 30		At December 31
(in thousands)		2023		2022

Cash	$	1,659	$	1,801
Cash in MLJV and MWJV		660		1,263
Cash equivalents		58,520		47,851
	$	60,839	$	50,915

(in thousands)		Equity Instruments		Physical Uranium		Total Investments

Balance-December 31, 2022	$	8,109	$	162,536	$	170,645
Acquired investments (note 10)		2,416		-		2,416
Change in fair value gain to profit (note 20)		2,645		85,910		88,555
Balance-September 30, 2023	$	13,170	$	248,446	$	261,616

		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)		1,145		34		380		1,559
Disposals		(260)		(28)		(1,242)		(1,530)
Balance-September 30, 2023	$	108,953	$	769	$	179,357	$	289,079

Accumulated amortization, depreciation:
Balance-December 31, 2022	$	(35,150)	$	(395)	$	-	$	(35,545)
Amortization		(141)		-		-		(141)
Depreciation (note 20)		(2,661)		(105)		-		(2,766)
Disposals		260		27		-		287
Balance-September 30, 2023	$	(37,692)	$	(473)	$	-	$	(38,165)

Carrying value:
Balance-December 31, 2022	$	72,918	$	368	$	180,219	$	253,505
Balance-September 30, 2023	$	71,261	$	296	$	179,357	$	250,914

(in thousands)		Deferred Revenue

Balance-December 31, 2022	$	33,295
Revenue recognized during the period (note 21)		(763)
Accretion (note 20)		2,726
Balance-September 30, 2023	$	35,258

(in thousands)		Reclamation Obligations

Balance-December 31, 2022	$	29,459
Reclamation liability deposit from joint venture partner		99
Accretion (note 20)		1,261
Expenditures incurred		(2,138)
Balance-September 30, 2023	$	28,681

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

Balance-December 31, 2022	55,006,475	$	-
Expiry of share purchase warrants	(55,006,475)		-
Balance-September 30, 2023	-	$	-

		Lease			Loan		Total Debt
(in thousands)			Liabilities		Liabilities		Obligations

Balance-December 31, 2022	$		396	$	180	$	576
Accretion (note 20)			21		-		21
Additions (note 10)			34		-		34
Repayments			(127)		(37)		(164)
Liability adjustment gain			(1)		-		(1)
Balance-September 30, 2023	$		323		143	$	466

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

Balance-December 31, 2022	826,325,592	$	1,539,209
Issued for cash:
Shares issued proceeds-total	19,786,160		37,887
Less: share issue costs	-		(845)
Other share issue proceeds-total	153,237		213
Less: other share issue costs	-		(20)
Share option exercises	2,970,381		2,362
Share option exercises-transfer from contributed surplus	-		981
Share unit exercises-transfer from contributed surplus	2,297,168		1,775
	25,206,946		42,353
Balance-September 30, 2023	851,532,538	$	1,581,562

		At September 30		At December 31
(in thousands)		2023		2022

Cash and cash equivalents	$	3,402	$	3,133
Investments		7,972		7,972
	$	11,374	$	11,105

Restricted cash and investments-by item:
Elliot Lake reclamation trust fund	$	3,402	$	3,133
Letters of credit facility pledged assets		7,972		7,972
	$	11,374	$	11,105

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

Share options outstanding-December 31, 2022	8,539,214	$	1.09
Grants	1,785,000		1.49
Exercises (1)	(2,970,381)		0.80
Expiries	(24,000)		0.60
Forfeitures	(437,333)		1.40
Share options outstanding-September 30, 2023	6,892,500	$	1.30
Share options exercisable-September 30, 2023	4,170,336	$	1.09

	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	1.44	977,500	$	0.46
$ 0.50 to $ 0.74	0.59	488,000		0.68
$ 0.75 to $ 0.99	-	-		-
$ 1.00 to $ 1.49	3.33	3,929,000		1.37
$ 1.50 to $ 1.99	3.47	1,417,000		1.83
$ 2.00 to $ 2.49	3.18	81,000		2.21
Share options outstanding-September 30, 2023	2.89	6,892,500	$	1.30

				Nine Months Ended
				September 30, 2023

Risk-free interest rate				3.68% to 4.70%
Expected stock price volatility				71.57 % to 73.41%
Expected life				3.41 to 3.43
Expected dividend yield				-
Fair value per options granted				0.79 to 0.98

	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	1,456,000		1.50	-		-
Exercises (1)	(1,737,168)		0.76	(560,000)		0.80
Forfeitures	(153,334)		1.67	-		-
Units outstanding–September 30, 2023	5,981,587	$	1.22	910,000	$	0.74
Units vested–September 30, 2023	3,253,255	$	0.85	910,000	$	0.74

		Three Month Ended September 30				Nine Months Ended September 30
(in thousands)		2023		2022		2023		2022

Operating expenses:
Mining, other development expense	$	-	$	-	$	(1)	$	(1)
Milling, conversion expense		(422)		(613)		(1,690)		(2,166)
Cost of services		(53)		(47)		(159)		(135)
Evaluation		(144)		(67)		(433)		(130)
Exploration		(174)		(33)		(368)		(82)
General and administrative		(38)		(78)		(115)		(196)
Depreciation expense-gross	$	(831)	$	(838)	$	(2,766)	$	(2,710)

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

Statement of Operations:
Revenues	$	763	6,582	-	7,345

Expenses:
Operating expenses	$	(2,033)	(6,025)	-	(8,058)
Exploration		(7,833)	-	-	(7,833)
Evaluation		(12,601)	-	-	(12,601)
General and administrative		(19)	-	(9,443)	(9,462)
		(22,486)	(6,025)	(9,443)	(37,954)
Segment income (loss)	$	(21,723)	557	(9,443)	(30,609)

Revenues-supplemental:
Environmental services	$	-	6,582	-	6,582
Toll milling services-deferred revenue (note 12)		763	-	-	763
	$	763	6,582	-	7,345


Capital additions:
Property, plant and equipment (note 10)	$	447	113	999	1,559

Long-lived assets:
Plant and equipment
Cost	$	98,925	4,342	6,455	109,722
Accumulated depreciation		(34,167)	(2,985)	(1,013)	(38,165)
Mineral properties		179,357	-	-	179,357
	$	244,115	1,357	5,442	250,914

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

Statement of Operations:
Revenues	$	7,957	6,011	-	13,968

Expenses:
Operating expenses	$	(3,405)	(5,193)	-	(8,598)
Evaluation		(17,811)	-	-	(17,811)
Exploration		(5,175)	-	-	(5,175)
General and administrative		(21)	-	(9,454)	(9,475)
		(26,412)	(5,193)	(9,454)	(41,059)
Segment income (loss)	$	(18,455)	818	(9,454)	(27,091)

Revenues–supplemental:
Environmental services	$	-	6,011	-	6,011
Toll milling services–deferred revenue (note 12)		4,971	-	-	4,971
Uranium concentrate sale		2,986	-	-	2,986
	$	7,957	6,011	-	13,968

Capital additions:
Property, plant and equipment	$	1,934	293	3,941	6,168

Long-lived assets:
Plant and equipment
Cost	$	94,116	4,366	11,718	110,200
Accumulated depreciation		(28,604)	(2,932)	(2,858)	(34,394)
Mineral properties		179,900	-	-	179,900
	$	245,412	1,434	8,860	255,706

	Financial	Fair		September 30,		December 31,
	Instrument	Value		2023		2022
(in thousands)	Category(1)	Hierarchy		Fair Value		Fair Value

Financial Assets:
Cash and equivalents	Category B		$	60,839	$	50,915
Trade and other receivables	Category B			5,648		4,143
Investments
Equity instruments-shares	Category A	Level 1		12,866		8,022
Equity instruments-warrants	Category A	Level 2		304		87
Restricted cash and equivalents
Elliot Lake reclamation trust fund	Category B			3,402		3,133
Credit facility pledged assets	Category B			7,972		7,972
			$	91,031	$	74,272

Financial Liabilities:
Account payable and accrued liabilities	Category C			10,991		10,299
Debt obligations	Category C			466		576
			$	11,457	$	10,875

TABLE OF CONTENTS
Q3 2023 PERFORMANCE HIGHLIGHTS	2
ABOUT DENISON	3
RESULTS OF OPERATIONS	5
Wheeler River Uranium Project	7
Evaluation Pipeline Properties	16
Community Engagement Activities	17
LIQUIDITY AND CAPITAL RESOURCES	24
OUTLOOK FOR 2023	26
ADDITIONAL INFORMATION	27
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS	28

(in thousands)		As at September 30, 2023		As at December 31, 2022

Financial Position:
Cash and cash equivalents	$	60,839	$	50,915
Working capital(1)	$	80,660	$	53,660
Investments in uranium(2)	$	248,445	$	162,536
Property, plant and equipment	$	250,914	$	253,505
Total assets	$	614,011	$	515,796
Total long-term liabilities(3)	$	62,133	$	61,365

PROJECT EVALUATION ACTIVITIES
Property	Denison’s ownership	Evaluation activities
Wheeler River	95%(1)	Engineering, FS, metallurgical testing, FFT care and maintenance and Phase 3 operations, environmental and sustainability activities, EIS regulatory reviews, construction license application submission.
Waterbury Lake	67.41%(2)	Field activities including drilling and development of six HQ wells, 2 PQ wells, pump and injection testing, metallurgical sampling, tracer testing and baseline environmental activities.

Summary of Economic Results (100% Basis) – Base Case
Uranium selling price	UxC Spot Price(1) (~US$66 to US$70/lb U3O8)
Exchange Rate (US$:CAD$)	1.35
Discount Rate	8%
Operating profit margin(2)	90.9%

Pre-tax NPV8%(3) (Change from 2018 PFS)(4)	$2.34 billion (+150%)
Pre-tax IRR(3)	105.9%
Pre-tax payback period(5)	~10 months

Post-tax NPV8%(3)	$1.43 billion
Post-tax IRR(3)	82.3%
Post-tax payback period(5)	~11 months

Adjusted Post-tax NPV8%(3)(6)	$1.56 billion
Adjusted Post-tax IRR(3)(6)	90.0%
Adjusted Post-tax payback period(3)(6)	~10 months

Summary of Key Phoenix Operational Parameters (100% basis)
Mine life	10 years
Proven & Probable reserves(1)	56.7 million lbs U3O8 (219,000 tonnes at 11.7% U3O8)
First 5 years of reserves(2)	41.9 million lbs U3O8 (Average 8.4 million lbs U3O8 / year)
Remaining years of reserves	14.8 million lbs U3O8 (Average 3.0 million lbs U3O8 / year)
Initial capital costs(3)	$419.4 million
Average cash operating costs	$8.51 (US$6.28) per lb U3O8
All-in cost(4)	$21.73 (US$16.04) per lb U3O8

Summary of Economic Results (100% Basis) – Base Case
Uranium selling price	US$75/lb U3O8(1) (Fixed selling price)
Exchange Rate (US$:CAD$)	1.35
Discount Rate	8%
Operating profit margin(3)	83.0%

Pre-tax NPV8%(3) (Change from 2018 PFS)(4)	$1.43 billion (+148%)
Pre-tax IRR(3)	41.4%
Pre-tax payback period(5)	~ 20 months

Post-tax NPV8%(3)(6)	$864.2 million
Post-tax IRR(3)(6)	37.6%
Post-tax payback period(5)(6)	~ 22 months

Summary of Key Gryphon Operational Parameters (100% basis)
Mine life	6.5 years
Probable reserves(1)	49.7 million lbs U3O8 (1,257,000 tonnes at 1.8% U3O8)
Average annual production	7.6 million lbs U3O8
Initial capital costs(2)	$737.4 million
Average cash operating costs	$17.27 (US$12.75) per lb U3O8
All-in cost(3)	$34.50 (US$25.47) per lb U3O8

Phoenix Capital Costs ($ millions)
	Initial	Sustaining	Total
Wellfield	$63.0	$177.1	$240.1
ISR processing plant	$102.6	$-	$102.6
Surface facilities	$14.7	$2.1	$16.8
Utilities	$34.8	$-	$34.8
Electrical	$19.1	$-	$19.1
Civil and earthworks	$39.6	$-	$39.6
Decommissioning	$-	$88.8	$88.8
Subtotal – Direct Costs	$273.8	$268.0	$541.8
Indirect costs	$70.5	$31.6	$102.1
Other (owner’s) costs	$32.7	$-	$32.7
Contingency	$42.6	$23.3	$65.9
Total Capital Costs	$419.4	$322.9	742.3

Wellfield +$141.0 million	The increase includes the adoption of a phased “freeze wall” design to replace the novel “freeze dome” concept included in 2018 PFS. The freeze dome introduced significant technical risk to the ISR mining process and added complexity from an environmental protection standpoint. The cost of the freeze dome was included in initial capital costs, whereas the cost of the freeze wall is spread over the life of mine, thus significantly reducing the impact to the NPV from the overall increase in capital costs. Materials and installation costs for the ISR injection and extraction wells are now based on the Company’s actual experience in installing both large and small-diameter test wells during the de-risking process, providing a much more accurate estimate of costs compared to the 2018 PFS.
Processing plant +$47.1 million	The increase reflects a variety of design adjustments to the processing plant, including those which enable an increase in the planned production rate by 43% during the first 5 years, which has a positive impact on the NPV.
Decommissioning +$60.2 million	The increase reflects the incorporation of costs associated with ore zone groundwater remediation to achieve targets proposed in the EA; more detailed management and regulatory cost requirements, improved accuracy in well decommissioning activities, process plant decontamination and demolition including transport and disposal of waste materials, additional costs for decommissioning larger industrial water treatment facilities, and environmental monitoring labour and analytical costs. As these increased capital costs are primarily expected to occur at the end of the mine life, the impact to the NPV from the increased capital costs is minimized.

EXPLORATION ACTIVITIES
Property	Denison’s ownership	Drilling in metres (m)(1)	Other activities
Bell Lake	100.00%	-	Geophysical Survey
Johnston Lake	100.00%	6,202 (8 holes)	Geophysical Survey
Moon Lake	100.00%	627 (1 hole)	-
Moon Lake South	75.00%	8,098 (14 holes)	-
Waterfound	24.68%(2)	9,789 (17 holes)	-
Wheeler River	95.00%(3)	4,368 (7 holes)	Geophysical Survey

Total		29,084 (47 holes)