Denison Mines: Phoenix Construction Making Quick Progress
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Denison Mines (DML, DNN) provided a construction update in conjunction with the release of its Q3/2026 results. Following a busy summer construction period, management estimates that construction of the Phoenix ISR uranium mine is ~24% complete. Given that full scale construction started this past July, this Q3 update represents first full quarter of full-scale construction.
The Phoenix Project's total percentage completion as at September 30, 2026 was estimated at approximately 24%. This includes estimates for:
engineering, PCM, and owner's costs at 32% completion,
construction and construction indirect costs at 20% complete, and
fabrication and delivery of equipment and materials at 32% complete.
Specifically, by the end of October, nearly 50% of all site civil work was complete, including the establishment of the main access road from Highway 914, and all scopes required to advance construction of the process plant, the delivery and installation of key electrical assets, the commencement of freeze well drilling, and preparation of the airstrip for operations in Q4. It was also noted that the critical concrete work required to start winter construction of the process plant building is substantially complete. Already shipped or received on site include modularized equipment, key electrical infrastructure, the freeze plant and certain process tanks.
YTD total Phoenix project expenditures totaled $161.1M, including $105.0M on construction and construction indirect costs and $39.0M on procurement of equipment and materials. Life to date expenditures on procurement of equipment and materials is approximately $56.8M. Forecasted expenditures for 2026 are now estimated to be $278.6M. A total of 66 freeze holes have been installed with ground freezing targeted for next quarter.
ADDITIONAL MINERALIZATION DISCOVERED AT PHOENIX NORTH
On the drilling front, last month drill hole WR-857D1 intersected 0.39% eU3O8 over 4.7m from 409.9m to 414.6m at the unconformity and represents the best mineralized hole drilled in this area of sparse historic drilling. WR-857D1 is located approximately 10,0m up-dip and along section of WR-857, which was completed during the second quarter and intersected mineralized intervals of 0.20% eU3O8 over 1.0m from 417.6m, and 0.07% eU3O8 over 0.5m from 415.8m. Additionally, drill hole WR-868 encountered unconformity associated mineralization (0.67% eU3O8 over 2.5m from 413.1m to 415.6m) approximately 50.0m along strike to the northeast of WR-857, and drill hole WR-869A intersected additional mineralization (highlighted by 0.07% eU3O8 over 2.2m from 421.5m to 423.7m) 50.0m along strike to the southwest of WR-857.
CONCLUSION & VALUATION
We note Denison's solid financial position highlighted by $362M of cash in treasury along with ~1.1M lbs of uranium in inventory (valued at $135M at current prices). This will mostly cover the estimated ~$490M remaining in needed capex spend to complete construction. We maintain our positive view on the company and congratulate management on all the milestone achievements spanning nearly a decade (since the Phoenix ISR decision was taken) and culminating with this final FID project approval and the start of construction. We maintain our targeted NAV multiple of 1.40x. Factoring in corporate adjustments we maintain our 12-month price objective of C$5.50 per share (rounded). Our price objective equates to upside of +86% from the most recent close on November 4. Shares of Denison Mines currently trade at a 0.75x P/NAV multiple.
