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Message: URANIUM Denison/Korea & List of all Uranium Producers/Share prices

URANIUM Denison/Korea & List of all Uranium Producers/Share prices

posted on Apr 16, 2009 03:05AM

http://www.mineweb.com/mineweb/view/...

The troubled uranium miner has scooped a deal with a big power utility, and raised fresh equity.

Author: Barry Sergeant
Posted: Wednesday , 15 Apr 2009

JOHANNESBURG -

The 18 March update from Denison Mines shocked investors in the company's stock, and possibly also the broader community of specialist investors who had been enthusiastically watching as the subsector continued to claw its way back.

That week in March Denison declined by up to 30%; the stock price at C$0.99 a share was 89% off its highs. The stock price closed on Tuesday this week at C$1.51, on highly encouraging news that Denison had raised C$75m in a direct placement with Korea Electric Power Corporation, or KEPCO, and a further C$20m by selling shares to entities associated with Denison chairman Lukas Lundin.

In addition, Denison and KEPCO have signed an offtake agreement to the effect that the power utility will buy between 510,000 and 690,000 pounds of uranium oxide a year from Denison from 2010 through 2015. The pricing will be on "industry standard" terms, implying that term prices, historically higher than spot prices, will be applied.

All this good news has hauled Denison out from investor punishment, for now at least. Upon raising C$47m in January this year, Denison forecast production of 2 to 2.4m pounds of uranium oxide this year; the latest guidance from March was slashed to 1.2 to 1.3m pounds for the year. Denison continued to shut in mines, most recently two of its five mines on the Colorado Plateau.

Denison Mines describes itself as "a diversified, growth-oriented, intermediate uranium producer. With seven active uranium mines in North America (six in the US and one in Canada), Denison estimates North American production at 3.6 to 6.0 million pounds of U3O8 by 2011".

So far this year Denison has been unable to sell uranium oxide at 95% of the term uranium price, as explicitly predicted by management in January, as US utilities have little uncovered demand in 2009-10. Worse still, Denison's capabilities as a reliable supplier were diminishing.

Denison looked increasingly likely to breach its debt covenants, viz., net debt to 3.5 times EBITDA (earnings before interest, tax, depreciation and amortisation). On 31 December 2008, Denison held cash of $3.2m and portfolio investments worth $10.7m. The company had by then drawn down $100m of a $125m revolving credit facility. Operating costs are $30-40/lb; uranium oxide sales at spot prices around $40.50/lb (down from around $55.00/lb in December) vs. the term price of $70/lb would provide negligible cashflow.

Denison stated in its fourth quarter 2008 update that it had started the process of selling certain assets, or looking for a strategic partner for the company. KEPCO may be that partner, of sorts, for now. Denison was also looking at the possibility of other debt and equity financings, if possible; now, two tranches of fresh equity have been sold. There is now some financial visibility for Denison.

By sealing a deal with KEPCO, Denison has been able to make some ground against the headwinds of running against the biggest names in uranium mining: Cameco, Rio Tinto (including ERA), Areva, KazAtomProm, TVEL, BHP Billiton, Navoi, and Uranium One, and also rising producers such as Paladin.

Selected uranium stocks





Producers

Stock

From

From

Value



price

high*

low*

$bn

Cameco

C$21.96

-50.5%

53.2%

7.085

ERA

A$21.25

-14.8%

127.3%

2.921

Paladin

A$3.49

-48.1%

114.1%

1.568

Uranium One

C$2.75

-46.9%

358.3%

1.062

Denison

C$1.51

-83.4%

118.8%

0.281

PriarGunsky

$135.00

-77.7%

35.0%

0.236

Producer averages/total

-53.6%

134.5%

13.153

Weighted averages



-48.5%

83.3%













Developers & other







First Uranium

C$6.45

-15.2%

532.4%

0.804

UEX

C$0.93

-81.7%

106.7%

0.140

Uranium Part.

C$6.76

-35.6%

50.2%

0.402

Summit Resources

A$1.83

-38.6%

37.6%

0.544

Mega Uranium

C$1.89

-28.7%

384.6%

0.291

Alliance Resources

A$0.63

-62.4%

121.1%

0.124

Bannerman

A$1.05

-59.5%

366.7%

0.119

Forsys

C$4.40

-42.4%

120.0%

0.282

Aurora Energy

C$2.40

-55.6%

189.2%

0.145

Laramide

C$1.52

-64.2%

166.7%

0.084

Mantra Resources

A$2.38

-40.5%

325.0%

0.270

Energy Metals

A$0.54

-65.2%

74.2%

0.046

Deep Yellow

A$0.16

-57.9%

63.3%

0.129

Extract Resources

A$3.90

-28.0%

420.0%

0.628

Strateco Resources

C$1.16

-48.0%

190.0%

0.114

Strathmore Minerals

C$0.34

-82.1%

109.4%

0.020

UR-Energy

C$0.77

-68.2%

126.5%

0.059

Thor Mining

A$0.03

-83.9%

123.1%

0.004

Uranium Resources

$0.59

-92.2%

63.9%

0.033

Uranerz

C$0.86

-75.8%

68.6%

0.039

Hathor Exploration

C$2.01

-54.3%

95.1%

0.142

West Australian Metals

A$0.10

-71.0%

96.1%

0.024

Marathon Resources

A$0.52

-74.3%

168.0%

0.028

Nufcor Uranium

₤1.60

-35.5%

114.0%

0.099

Kalahari Minerals

₤1.28

0.0%

395.1%

0.341

Eso Uranium

C$0.06

-77.1%

175.0%

0.002

Uranium Energy

$0.63

-81.5%

292.8%

0.029

West Aust. Metals

A$0.10

-71.0%

96.1%

0.024

Tournigan

C$0.26

-74.5%

92.6%

0.026

Scimitar Resources

A$0.29

-32.1%

185.0%

0.010

Vital Metals

A$0.04

-95.1%

0.0%

0.003

Southern Uranium

A$0.06

-66.7%

77.4%

0.005

Uranium Equities

A$0.17

-43.1%

230.0%

0.023

Black Range Minerals

A$0.04

-61.2%

245.5%

0.017

Berkeley Resources

₤0.32

-33.9%

234.2%

0.049

Xemplar Energy

C$0.33

-82.4%

170.8%

0.032

JNR Resources

C$0.23

-81.1%

48.4%

0.017

Crosshair Exploration

C$0.16

-84.3%

82.4%

0.014

A-CAP Resources

A$0.24

-72.7%

200.0%

0.019

Fission Energy

C$0.22

-86.6%

158.8%

0.008

Curnamona Energy

A$0.44

-51.1%

225.9%

0.021

Coronation Minerals

C$0.07

-81.4%

160.0%

0.006

Khan Resources

C$0.44

-68.1%

203.4%

0.020

Bayswater Uranium

C$0.09

-82.3%

70.0%

0.011

Energy Fuels

C$0.26

-80.7%

136.4%

0.014

Azimut Exploration

C$0.35

-90.5%

84.2%

0.005

Desert Energy

A$0.06

-82.1%

42.9%

0.004

Pancontinental Uranium

C$0.05

-90.0%

11.1%

0.002

Pepinnini Minerals

A$0.25

-75.5%

81.5%

0.012

Nuinsco Resources

C$0.04

-88.2%

166.7%

0.006

Western Prospector

C$0.54

-59.7%

440.0%

0.024

Pitchstone Exploration

C$0.19

-88.3%

40.7%

0.005

Canalaska Uranium

C$0.11

-67.7%

133.3%

0.012

Uranium Power

C$0.15

-72.7%

114.3%

0.012

Bitterroot Resources

C$0.12

-88.9%

33.3%

0.006

Encounter Resources

A$0.06

-84.5%

24.0%

0.003

Calypso Uranium

C$0.10

-75.0%

171.4%

0.004

Magnum Uranium

C$0.18

-72.3%

157.1%

0.004

Atomic Resources

A$0.11

-64.5%

54.9%

0.005

Titan Uranium

C$0.32

-60.0%

190.9%

0.014

Uranex

A$0.25

-56.9%

127.3%

0.015

Red Hill Energy

C$0.43

-55.7%

115.0%

0.017

Pele Mountain

C$0.11

-69.9%

83.3%

0.008

Crossland Uranium

A$0.06

-71.4%

50.0%

0.005

Monaro Mining

A$0.11

-82.5%

69.2%

0.007

Epsilon Energy

A$0.06

-93.7%

37.5%

0.002

Eromanga Uranium

A$0.07

-59.4%

192.0%

0.007

African Energy

A$0.03

-89.3%

220.0%

0.004

Toro Energy

A$0.17

-60.5%

83.3%

0.092

NWT Uranium

C$0.18

-45.3%

775.0%

0.018

Cash Minerals

C$0.05

-84.8%

150.0%

0.005

Apollo Minerals

A$0.14

-72.0%

12.0%

0.010

Forum Uranium

C$0.11

-77.2%

320.0%

0.008

Wealth Minerals

C$0.24

-83.1%

140.0%

0.006

Santoy Resources

C$0.10

-73.7%

122.2%

0.009

Uracan Resources

C$0.20

-66.7%

66.7%

0.015

Niger Uranium

₤0.22

-13.7%

486.7%

0.018

Unor

C$0.05

-80.0%

80.0%

0.005

Purepoint Uranium

C$0.10

-72.1%

171.4%

0.006

Nortec Ventures

C$0.18

-48.6%

157.1%

0.011

Int'l Enexco

C$0.34

-73.2%

67.5%

0.005

U3O8 Corp.

C$0.40

-56.5%

135.3%

0.008

Silver Spruce

C$0.09

-82.7%

70.0%

0.003

Triex Minerals

C$0.16

-90.1%

6.7%

0.003

Rum Jungle Uranium

A$0.05

-75.0%

38.9%

0.005

Solex Resources

C$0.10

-72.9%

280.0%

0.004

Uravan Minerals

C$0.14

-85.0%

22.7%

0.003

Universal Uranium

C$0.05

-89.4%

150.0%

0.002

Oklo Uranium

A$0.06

-51.7%

132.0%

0.004

Hawk Uranium

C$0.04

-84.0%

100.0%

0.002

Macusani Yellowcake

C$0.25

-50.0%

150.0%

0.007

Great Australian

A$0.03

-81.8%

50.0%

0.003

Contl. Precious Minerals

C$0.44

-69.0%

95.6%

0.017

Blue Sky Uranium

C$0.12

-69.2%

300.0%

0.004

Aura Energy

A$0.13

-60.6%

56.6%

0.008

Empire Resources

A$0.07

-68.9%

250.0%

0.004

Northern Continental

C$0.10

-64.8%

58.3%

0.004

Int'l Montoro

C$0.04

-80.0%

60.0%

0.001

North Atlantic Resources

C$0.10

-75.0%

400.0%

0.002

Alberta Star

C$0.12

-73.3%

33.3%

0.066

East Asia Minerals

C$0.46

-73.3%

283.3%

0.043

Black Range Minerals

A$0.04

-61.2%

245.5%

0.022

Fronteer

C$2.86

-51.9%

84.5%

0.002

Portal Resources

C$0.10

-62.0%

280.0%

0.005

Eso Uranium

C$0.06

-77.1%

175.0%

0.001

Bearclaw Capital

C$0.06

-78.0%

120.0%

0.001

Forte Energy

A$0.09

-44.8%

139.5%

0.029

Western metals

A$0.05

-62.5%

114.3%

0.020

Mindax

A$0.40

-21.6%

105.1%

0.037

North American Gem

C$0.08

-88.5%

50.0%

0.007

Developer averages/total

-66.3%

151.8%

5.965

Weighted averages



-53.9%

158.9%



Overall averages/total



-65.0%

150.6%

18.882

Overall weighted averages

-49.5%

102.9%













Diversifieds with uranium







Areva

€343.23

-58.1%

13.1%

16.117

Rio Tinto

₤24.40

-66.0%

145.2%

52.633

BHP Billiton

₤14.35

-34.9%

96.2%

128.489

AngloGold Ashanti

$31.55

-19.4%

136.0%

11.174

Equinox

C$2.05

-60.2%

169.7%

1.006





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