Q: They have permits for their new mill project, (couple years down the road). I presume they will have to raise money for this project. What are your thoughts on Dension Mines. Would you be a buy, sell, or hold? If I could elaborate on your answer.
Thank you for your good service, it is appreciated.
Earl
Thank you for your good service, it is appreciated.
Earl
5i Research Answer:
DML has a cash balance of $393M and a growing equity position, which could take on some debt, but it does already have a high debt/equity position of 1.7. We think that the buildout could be accomplished through potential project financing, strategic uranium sales, and potentially share issuance. Momentum seems to be resuming and we think that if the markets continue to catch a bid here, with the tailwinds from the critical minerals theme, we think DML can perform well. For an investor that is bulish on the uranium and critical minerals theme, we would be comfortable buying DML here.