Denison Mines Corp. · TSX:DML
Denison Mines — Corporate Update (January 2022)
20 slides from Denison Mines's corporate update, Jan 25, 2022
Slide 1: Corporate Update January 2022
Corporate Update January 2022 Uranium Development & Exploration The Athabasca Basin, Northern Saskatchewan
Slide 2: Cautionary Statements & References
Cautionary Statements & References This presentation and the information contained herein is designed to help you understand management’s current views, and may not be appropriate for other purposes. This presentation contains information relating to the uranium market, third party and provincial in
Slide 3: The Uranium Investment Thesis: Fundamentals progressing towards a positive new uranium cycle
The Uranium Investment Thesis: Fundamentals progressing towards a positive new uranium cycle Annual Utility Uranium Requirements (1) Key Market Themes: (million pounds U3O8 - per UxC Q4’21) 1. Demand story is positive – now exceeding pre- 250 Fukushima levels + clean-energy transition has identified
Slide 4: Diversified Athabasca Basin asset base with superior development leverage
Diversified Athabasca Basin asset base PHOTO: with superior development leverage Aerial view of Denison’s 22.5% owned McClean Lake mill facility NOTES: (1) Denison increased its 95%(1) 22.5% 66.9% effective interest in Wheeler River as part of the acquisition of 50% of JCU (Canada) Exploration Compa
Slide 5: Denison's development portfolio projects: Positioned amongst the lowest all-in cost assets
Denison’s development portfolio projects: Positioned amongst the lowest all-in cost assets of UxC’s First Tier Sample of Global Production Costs(1)(2)(3) Planned and Producing Operations (with Mining Method) “Third/Fourth Tier” $50.00 “Second Tier” $45.00 All-in / Full Costs – USD$/lb U3O8 NOTES: $4
Slide 6: Robust Balance Sheet with +CAD$200M in working capital and investments
Robust Balance Sheet with +CAD$200M in working capital and investments (1) 2.4M lbs U3O8 +CAD$25M in holdings of invested in physical uranium uranium equities Market value ~CAD$131M (US$43.00/lb U3O8) Significant equity holdings in uranium exploration and development companies, Acquired at average c
Slide 7: Large land position in the infrastructure-rich eastern portion of the Athabasca Basin
Large land position in the infrastructure-rich eastern portion of the Athabasca Basin(1)(2) Waterbury Lake Orano (Denison 66.9%) McClean Lake Mill (Denison 22.5%) Rabbit Lake Mill Cigar Lake Mine NOTES: McArthur River Mine (1) Denison direct land position shown as of September 30, 2021. (2) Excludes
Slide 8: 95% owned flagship Wheeler River development project
95% owned flagship Wheeler River development project (1)(2) Two 14-year combined CAD$322.5M estimated PHOTO: High-grade uranium Mine Life Initial CAPEX Installation of large- deposits diameter commercial (100% basis) scale ISR test wells at Phoenix during 2021. Phoenix – designed as a low- LINKS: co
Slide 9: Phoenix In-Situ Recovery Operation
Phoenix In-Situ Recovery (“ISR”) Operation: PFS highlights potential to become one of the lowest cost uranium mines in the world(1) PHOTOS: 70.2M 6M lbs C $322.5M ISR test pattern and commercial scale well- lbs U3O8 lbs U3O8 estimated head (inset) at Phoenix Average annual Initial during field tests
Slide 10: Gryphon Underground Operation
Gryphon Underground (“UG”) Operation: PFS shows potential to add further low-cost production by using existing infrastructure(1) PHOTO: 61.9M 7.6M C $623.1M View inside the SX circuit at Denison’s 22.5% owned lbs U3O8 lbs U3O8 estimated McClean Lake mill, which Average annual Initial is assumed to t
Slide 11: Wheeler River PFS: Staged development plan reduces risk
Wheeler River PFS: Staged development plan reduces risk and delivers production to match market needs(1) Gryphon: potential second operation. 16 Additional production to be developed Phoenix: 10-year mine life Million Pounds U3O8 Per Annum to match market needs @ 6M lbs U3O8 per year 14 12 Environme
Slide 12: Wheeler River PFS: Robust economics supported by conservative uranium price assumptions
Wheeler River PFS: Robust economics supported by conservative uranium price assumptions NOTES: (1) Refer to the Wheeler River Technical Report 3000 PFS Pre-Tax NPV8% (100% Basis) Phoenix Gryphon titled “Pre-feasibility Study Report for the Wheeler River Uranium Project, ~US$29/ lb U3O8 US$50/ lb U3O
Slide 13: Phoenix ISR De-Risking
Phoenix ISR De-Risking: Combining the world’s lowest cost uranium mining method with the world’s highest-grade undeveloped uranium deposit PHOTOS (Left to Right): Small diameter ISR test wells installed at Phoenix in 2019; Specialized core- leach testing apparatus from the Saskatchewan Research Coun
Slide 14: Phoenix ISR Feasibility Study
Phoenix ISR Feasibility Study: Wood PLC selected to lead + author independent Feasibility Study in accordance with NI 43-101(1) 50% Updated increase Estimate of Mineral to ISR mining Resources uranium head- grade in PFS(3) including results from GWR-045(4) Process Mine PHOTO: Plant Design Isometric
Slide 15: 66.90% owned Waterbury Lake project demonstrates potential for ISR
66.90% owned Waterbury Lake project demonstrates potential for ISR to transform portfolio projects(1) PHOTO: Isometric schematic of ISR wellfield and freeze wall at depth of the THT deposit on Waterbury Lake ISR 6-year CAD$112M property. LINKS: estimated Mining method Mine Life Waterbury Lake Projec
Slide 16: Tthe Heldeth Túé In-Situ Recovery Operation
Tthe Heldeth Túé (“THT”) In-Situ Recovery (“ISR”) Operation: PEA shows potential for ISR to change future of uranium mining landscape in Canada(1) PHOTOS: Aerial rendering of surface facilities for the THT ISR 1.6M lbs C $112M operation NOTES: lbs U3O8 estimated (1) Refer to the Waterbury Average
Slide 17: 22.5% Denison-owned McClean Lake Mill Operation
22.5% Denison-owned McClean Lake Mill Operation: Excess licensed capacity and CNSC approval in place for expansion of tailings facility +12% 24M 6M lbs U3O8 PHOTO: of global lbs U3O8 Excess licensed Aerial view of Denison’s 22.5% owned McClean uranium capacity Lake mill facility production Licensed
Slide 18: 22.5% Denison-owned McClean Lake Property: SABRE mining method
22.5% Denison-owned McClean Lake Property: SABRE mining method has potential to unlock value from unmined deposits close to mill SABRE Patented To Evaluate The use of the SABRE mining mining method is SABRE mining method property of method for use on McClean Lake JV unmined McClean Successful 5-year
Slide 19: 25.17% Denison-owned Midwest Property
25.17% Denison-owned Midwest Property: Two high-grade uranium deposits in close proximity to the McClean Lake mill Approved Deferred Orano Environmental Canada Inc. 2007 development Impact decision for French nuclear Statement Midwest Main was giant serves as (“EIS”) deferred in 2008, project operat
Slide 20: Capital Structure & Corporate Information
Capital Structure & Corporate Information Market Summary (1) Exchanges TSX: DML Management & Directors NYSE American: DNN Shares Outstanding 807.4 M David Cates (President & CEO, Director) Mac McDonald (Exec. VP & CFO) Share Purchase Warrants (US$2/US$2.25) 15.8M / 39.2M LINKS: David Bronkhorst (VP