Denison Mines: An Ideal Play for Riding Strong Uranium Demand

Denison Mines Corp (NYSE: DNN) has been on a fine run in 2021, more than doubling in value in the first quarter. While the stock has pulled lower in recent weeks, it is still up by more than 50%, with the pullback presenting an ideal entry point at a great discount.

The impressive stock run stems from reports that demand for uranium could edge higher in 2021, setting the stage for a busy year for the uranium company. According to Bank of America, demand for uranium could reach highs of 26 million pounds in the US, postponing its aging nuclear plants’ closure. Denison Mines is well-positioned to benefit from any spike in uranium demand backed by its flagship Wheeler River project. The company has already confirmed encouraging exploratory drilling results.

The stock is poised to elicit strong institutional interest in being included UN the S&P/TSX Composite Index. The addition should also significantly impact the stock’s liquidity, making it easier for Dennison Mines to raise the capital needed to get the flagship project through to completion. That said, Denison Mines Corp could see a bounce-back playing likely to rally after recent consolidation given the solid underlying fundamentals.

Anthony Gonzales

Biotech, Tech, and Crypto reporterAnthony Gonzales brings 3 years of experience in helping grassroots, mid-sized organizations and large institutions strengthen their management and resource generating capacities and effectively plan for the future. He is also a mentor and professional advisor to artists working in all disciplines. He is the gold medalist from St. Marco University of Science and Technology in the Bachelors of Financial Management as well.