The Energy Report

Source: Streetwise Reports   09/07/2018

A ROTH Capital Partners report covers the terms of the proposed transaction and the impact on this company.

In a Sept. 6 research note, Joe Reagor, a ROTH Capital Partners analyst, reported Denison Mines Corp. (DML:TSX; DNN:NYSE.MKT) agreed to acquire Cameco’s 24% interest in the Wheeler River uranium project for 24.6 million Denison shares. The shares were valued at $0.65 apiece, for a total of $16 million.

That amount compares to $94 million, the difference between the values ROTH attributes to Denison’s shares pre and post acquisition, $392.3 million and $486.4 million, respectively, Reagor pointed out.

Because the Toronto-headquartered producer “paid a below market price,” for the stake, noted Reagor, ROTH increased its target price on the company to US$1.20 per share from US$1.10. Denison is currently trading at around US$0.48 per share.

The deal, which Reagor described as “accretive,” will boost Denison’s ownership in Wheeler River to 90%, assuming the other partner of the joint venture, JCU Exploration, does not exercise its right of first refusal to acquire a prorated portion of Cameco’s interest, which would amount to about 3.16%. Should it do so, Denison’s ownership of the project would be roughly 86.48%.

Reagor concluded the report by adding the transaction should benefit Denison shareholders because they will have a “larger percentage of future resource increases as the company continues to explore the project.”

ROTH maintains its Buy rating on Denison.

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Disclosures from ROTH Capital Partners, Denison Mines Corp., Company Note, Sept. 6, 2018

Regulation Analyst Certification (“Reg AC”): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.

ROTH makes a market in shares of Denison Mines Corp. and as such, buys and sells from customers on a principal basis.

Shares of Denison Mines Corp. may be subject to the Securities and Exchange Commission’s Penny Stock Rules, which
may set forth sales practice requirements for certain low-priced securities.

ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months.

( Companies Mentioned: DML:TSX; DNN:NYSE.MKT,
)