Topic: How To Invest

I hold some Denison Mines shares. Is it okay to hold at these prices?

Article Excerpt

Denison Mines, $1.49, symbol DML on Toronto (Shares outstanding: 339.7 million; Market cap: $506.2 million), develops, produces and explores for uranium. The company’s main assets are a 22.5% interest in the McClean Lake mine in the Athabasca region of northern Saskatchewan, and a 25.17% interest in the nearby Midwest project. It also owns 22.5% of the uranium-processing mill at McClean Lake, and 100% of the White Mesa mill in Utah. As well, the company is actively exploring for uranium in Canada, the U.S., Mongolia and Zambia. The McClean Lake mine will run out of ore to process by next year. The company hopes to replace this with ore from the Caribou deposit, which is also located at McClean Lake, and the Midwest project. However, low uranium prices have prompted the company to suspend development at both sites. In the three months ended June 30, 2009, Denison’s revenue fell 57.8%, to $13.4 million from $31.7 million. The company lost $0.07 a share,…