Incannex Healthcare stock tumbles after filing $100M offering
On Friday, Desjardins initiated coverage on Denison Mines (DML:CN) (NYSE: NYSE:DNN), a uranium development company, with a Buy rating and a price target of C$4.00. The stock, currently trading near its 52-week low of $1.23 and down about 31% year-to-date, has shown significant volatility. InvestingPro data reveals 12+ additional insights about Denison’s market position and growth potential. Bryce Adams, an analyst at Desjardins, highlighted the company’s 95% ownership of the Wheeler River project, which is located in the prolific Athabasca Basin, near Cameco (NYSE:CCJ)’s Saskatchewan operations. The project is currently in the advanced stages of permitting and is expected to commence formal construction in early 2026, with Desjardins modeling the start of construction in the first quarter of that year.
The first deposit at Wheeler River, known as Phoenix, is described as a high-grade, fast-payback project. Adams noted the limited financing risk for Denison, given its approximate C$2 billion market capitalization. The analyst anticipates a C$275 million shortfall for the project’s capital expenditure but believes that the company will have access to a variety of options to fund this gap. Supporting this view, InvestingPro analysis shows the company holds more cash than debt on its balance sheet, with zero debt-to-equity ratio, providing additional financial flexibility.
Desjardins predicts Denison will utilize a mix of approximately 50% debt and 50% equity to address the capital shortfall, but also expects the company to seek an optimal financing mix that will minimize the weighted average cost of capital (WACC) and provide flexibility in repayment terms.
The Wheeler River project’s advanced permitting status positions it well for the next stage of development. With the construction timeline set and financial strategies outlined, Denison Mines seems poised to move forward with its strategic plans in the coming years. The company’s stock is anticipated to be buoyed by these developments, as reflected in the positive outlook from Desjardins.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.