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Denison Mine (DNN) to Report Q1 Earnings: What's in Store?
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Denison Mine Corp (DNN - Free Report) is expected to register a loss of 1 cent per share when it reports first-quarter 2024 results this week. The company had reported breakeven earnings per share in the year-ago quarter.
Over the past 30 days, the estimate has moved down from the prior expectation of break-even earnings per share to an anticipated loss of 1 cent per share.
Q4 Results
In the last reported quarter, Denison Mine reported adjusted earnings of 3 cents per share against breakeven earnings per share reported in the comparable year-ago quarter. The bottom line also beat the Zacks Consensus Estimate of a loss of 1 cent per share.
DNN’s earnings have outpaced the consensus estimate in each of the trailing four quarters, the average surprise being 300%.
Denison is a uranium exploration and development company with interests focused in the Athabasca Basin region of northern Saskatchewan, Canada. It has a 95% interest in its flagship Wheeler River Uranium Project, which is the largest undeveloped uranium project in the infrastructure-rich eastern portion of the Athabasca Basin region of northern Saskatchewan.
Denison holds a 22.5% ownership interest in the MLJV (a joint venture with Orano Canada) and the McClean Lake uranium mill, one of the world’s largest uranium processing facilities, which is contracted to process ore from the Cigar Lake mine under a toll milling agreement.
Notably, the company’s toll milling revenues fluctuate due to the timing of uranium processing at the McClean Lake mill, as well as changes to the estimated mineral resources of the Cigar Lake mine.
In 2023, the McClean Lake mill processed 15.1 million pounds of uranium, lower than 18 million in 2022. Denison recorded toll milling revenues of $1.86 million in 2023 compared with $6 million in 2022. The Cigar Lake mine operators now expect mine production at around 18 million pounds in 2024, which suggests an increase from 2023 levels. In the first quarter of 2023, the McClean Lake mill had processed 3.8 million pounds of uranium, which was around 25% of the year’s production. Considering that the company’s full-year guidance projects a year-over-year increase, we expect the first quarter’s output to reflect the same. This is expected to have been reflected in Denison’s revenues.
Taking advantage of the upward trajectory seen in uranium prices in the fourth quarter of 2023, DNN sold 200,000 pounds of uranium at an average selling price of $73.38 per pound, resulting in realized gain on sale of $8.8 million in the quarter.
The momentum in uranium prices persisted into the first quarter of 2024, commencing around $92 per pound and peaking at a 17-year high of $106 per pound on Jan 22, 2024. This was triggered by fears over a potential supply crunch following the declaration from Kazatomprom, the world's largest uranium mining company based in Kazakhstan, regarding its plans to cut uranium production to 80% of the permitted maximum output. Uranium prices experienced another spike in early February, reaching $105 before undergoing a correction.
Uranium prices ended the quarter at around $88 per pound, witnessing a 3.4% decline through the course of the quarter. Despite this decline, uranium prices remained significantly elevated compared with the first quarter of 2023. In light of these trends, it is anticipated that Denison Mines is likely have capitalized on the high prices by selling a portion of its inventory. Notably, the company had previously announced its intention to sell approximately 300,000 pounds of uranium from its physical holdings in 2024.
However, this gain is likely to have been offset by the absence of revenues from Closed Mine Services in the first quarter. Denison’s Closed Mines group provided long-term care and maintenance for closed mine sites since 1997. However, the third-party closed mines services contract expired in August 2023 and the company will no longer earn revenues from these services. This is likely to have impacted the year-over-year comparisons in the company’s first-quarter 2024 revenues.
Denison Mines has been witnessing higher general and administrative expenses, which comprise head office salaries and benefits, office costs in multiple regions, audit and regulatory costs, legal fees, investor relations expenses and project costs. Increases in compliance costs (stock exchange fees, audit fees, etc.), as well as increased travel costs associated with site visits to the Wheeler River FFT site are also expected to have driven these costs higher. Results are also likely to be impacted by exploration and evaluation costs. Notably, exploration expenses are generally higher in the first and third quarters, due to the timing of the winter and summer exploration seasons in northern Saskatchewan.
What the Zacks Model Indicates
Our proven model does not conclusively predict an earnings beat for Denison Mine this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Denison Mine is 0.00%.
Zacks Rank: DNN currently carries a Zacks Rank of 3.
DNN’s Peer’s Q1 Result
Energy Fuels (UUUU - Free Report) recently reported first-quarter 2024 results. Earnings per share were 2 cents, in line with the Zacks Consensus Estimate. The bottom-line figure marked an improvement from the loss of 1 cent per share reported in the first quarter of 2023.
Leveraging favorable price trends, Energy Fuels sold 300,000 pounds of uranium concentrates at a weighted average price of $84.38 per pound for $25.31 million in the first quarter of 2024. This resulted in a gross profit of $14.26 million and an average gross margin of 56%. UUUU reported a 30% year-over-year increase in revenues to $25 million, missing the Zacks Consensus Estimate of $26 million.
Price Performance
Denison Mine’s shares have gained 95.4% in the past year compared with the industry’s 5.5% growth.
Image Source: Zacks Investment Research
Stocks to Consider
Here are some stocks with the right combination of elements to post an earnings beat in their upcoming releases.
The consensus estimate for IOSP’s earnings is currently pegged at $1.64 per share. The estimate indicates year-over-year growth of 18.8%. IOSP’s earnings have outpaced the consensus estimate in each of the trailing four quarters, the average surprise being 10.5%.
SilverCrest Metals (SILV - Free Report) , slated to release earnings on May 14, has an Earnings ESP of +14.92% and a Zacks Rank of 3, at present.
The Zacks Consensus Estimate for SILV’s first-quarter earnings is currently pegged at 12 cents per share. The figure suggests a decline of 33% from the year-ago quarter’s earnings. SilverCrest Metals’ earnings have outpaced the consensus estimate in each of the trailing four quarters, the average surprise being 24.5%.
Image: Bigstock
Denison Mine (DNN) to Report Q1 Earnings: What's in Store?
Denison Mine Corp (DNN - Free Report) is expected to register a loss of 1 cent per share when it reports first-quarter 2024 results this week. The company had reported breakeven earnings per share in the year-ago quarter.
Over the past 30 days, the estimate has moved down from the prior expectation of break-even earnings per share to an anticipated loss of 1 cent per share.
Q4 Results
In the last reported quarter, Denison Mine reported adjusted earnings of 3 cents per share against breakeven earnings per share reported in the comparable year-ago quarter. The bottom line also beat the Zacks Consensus Estimate of a loss of 1 cent per share.
DNN’s earnings have outpaced the consensus estimate in each of the trailing four quarters, the average surprise being 300%.
Denison Mine Corp Price and EPS Surprise
Denison Mine Corp price-eps-surprise | Denison Mine Corp Quote
Factors to Note
Denison is a uranium exploration and development company with interests focused in the Athabasca Basin region of northern Saskatchewan, Canada. It has a 95% interest in its flagship Wheeler River Uranium Project, which is the largest undeveloped uranium project in the infrastructure-rich eastern portion of the Athabasca Basin region of northern Saskatchewan.
Denison holds a 22.5% ownership interest in the MLJV (a joint venture with Orano Canada) and the McClean Lake uranium mill, one of the world’s largest uranium processing facilities, which is contracted to process ore from the Cigar Lake mine under a toll milling agreement.
Notably, the company’s toll milling revenues fluctuate due to the timing of uranium processing at the McClean Lake mill, as well as changes to the estimated mineral resources of the Cigar Lake mine.
In 2023, the McClean Lake mill processed 15.1 million pounds of uranium, lower than 18 million in 2022. Denison recorded toll milling revenues of $1.86 million in 2023 compared with $6 million in 2022. The Cigar Lake mine operators now expect mine production at around 18 million pounds in 2024, which suggests an increase from 2023 levels. In the first quarter of 2023, the McClean Lake mill had processed 3.8 million pounds of uranium, which was around 25% of the year’s production. Considering that the company’s full-year guidance projects a year-over-year increase, we expect the first quarter’s output to reflect the same. This is expected to have been reflected in Denison’s revenues.
Taking advantage of the upward trajectory seen in uranium prices in the fourth quarter of 2023, DNN sold 200,000 pounds of uranium at an average selling price of $73.38 per pound, resulting in realized gain on sale of $8.8 million in the quarter.
The momentum in uranium prices persisted into the first quarter of 2024, commencing around $92 per pound and peaking at a 17-year high of $106 per pound on Jan 22, 2024. This was triggered by fears over a potential supply crunch following the declaration from Kazatomprom, the world's largest uranium mining company based in Kazakhstan, regarding its plans to cut uranium production to 80% of the permitted maximum output. Uranium prices experienced another spike in early February, reaching $105 before undergoing a correction.
Uranium prices ended the quarter at around $88 per pound, witnessing a 3.4% decline through the course of the quarter. Despite this decline, uranium prices remained significantly elevated compared with the first quarter of 2023. In light of these trends, it is anticipated that Denison Mines is likely have capitalized on the high prices by selling a portion of its inventory. Notably, the company had previously announced its intention to sell approximately 300,000 pounds of uranium from its physical holdings in 2024.
However, this gain is likely to have been offset by the absence of revenues from Closed Mine Services in the first quarter. Denison’s Closed Mines group provided long-term care and maintenance for closed mine sites since 1997. However, the third-party closed mines services contract expired in August 2023 and the company will no longer earn revenues from these services. This is likely to have impacted the year-over-year comparisons in the company’s first-quarter 2024 revenues.
Denison Mines has been witnessing higher general and administrative expenses, which comprise head office salaries and benefits, office costs in multiple regions, audit and regulatory costs, legal fees, investor relations expenses and project costs. Increases in compliance costs (stock exchange fees, audit fees, etc.), as well as increased travel costs associated with site visits to the Wheeler River FFT site are also expected to have driven these costs higher. Results are also likely to be impacted by exploration and evaluation costs. Notably, exploration expenses are generally higher in the first and third quarters, due to the timing of the winter and summer exploration seasons in northern Saskatchewan.
What the Zacks Model Indicates
Our proven model does not conclusively predict an earnings beat for Denison Mine this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Denison Mine is 0.00%.
Zacks Rank: DNN currently carries a Zacks Rank of 3.
DNN’s Peer’s Q1 Result
Energy Fuels (UUUU - Free Report) recently reported first-quarter 2024 results. Earnings per share were 2 cents, in line with the Zacks Consensus Estimate. The bottom-line figure marked an improvement from the loss of 1 cent per share reported in the first quarter of 2023.
Leveraging favorable price trends, Energy Fuels sold 300,000 pounds of uranium concentrates at a weighted average price of $84.38 per pound for $25.31 million in the first quarter of 2024. This resulted in a gross profit of $14.26 million and an average gross margin of 56%. UUUU reported a 30% year-over-year increase in revenues to $25 million, missing the Zacks Consensus Estimate of $26 million.
Price Performance
Denison Mine’s shares have gained 95.4% in the past year compared with the industry’s 5.5% growth.
Image Source: Zacks Investment Research
Stocks to Consider
Here are some stocks with the right combination of elements to post an earnings beat in their upcoming releases.
Innospec Inc. (IOSP - Free Report) , scheduled to release first-quarter 2024 earnings on May 9, has an Earnings ESP of +2.44% and a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for IOSP’s earnings is currently pegged at $1.64 per share. The estimate indicates year-over-year growth of 18.8%. IOSP’s earnings have outpaced the consensus estimate in each of the trailing four quarters, the average surprise being 10.5%.
SilverCrest Metals (SILV - Free Report) , slated to release earnings on May 14, has an Earnings ESP of +14.92% and a Zacks Rank of 3, at present.
The Zacks Consensus Estimate for SILV’s first-quarter earnings is currently pegged at 12 cents per share. The figure suggests a decline of 33% from the year-ago quarter’s earnings. SilverCrest Metals’ earnings have outpaced the consensus estimate in each of the trailing four quarters, the average surprise being 24.5%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.