This Uranium Stock Will Benefit From America's Aims Of Advancing Nuclear Energy, Next-Gen Technologies
Denison Mines Corp (NYSE:DNN), a Canadian uranium exploration, development and production company, recently earned a Strong Buy recommendation from technical analyst Clive Maund.
The company is poised to become a "low-cost uranium producer in the coming years," according to Roth Capital Partners.
The Denison Mines Analyst: Joe Reagor initiated coverage of Denison Mines with a Buy rating and price target of $2.60.
The Denison Mines Thesis: The U.S. goals of advancing nuclear energy and next-gen technologies require uranium, which is currently supplied by "unstable or unfriendly jurisdictions," Reagor said in the initiation note.
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U.S.-based uranium mines could "fall well short of domestic demand regardless of the uranium price," he added.
"This creates an ideal situation for Canadian-based development projects that are generally larger and lower cost than U.S. competitors," the analyst wrote.
Denison Mines' Phoenix deposit, which is "an ideal source of uranium for the U.S. market," could produce more than 9.0 million pounds of uranium per year in peak years "at an average all-in cost per pound of $16.04," he further stated.
DNN Price Action: Shares of Denison Mines had risen by 3.22% to $2.09%at the time of publication on Thursday.
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