11:32 AM EDT, 08/06/2025 (MT Newswires) -- (Adds analyst comment and updates shares.)

Denison Mines ( DNN ) on Wednesday said the results of a preliminary economic assessment for in-situ recovery mining of the Midwest Main uranium deposit at its Midwest project in Saskatchewan gave the project a base case post-tax net present value of $965 million based on an 8% discount rate, with an 82.7% internal rate of return and nine-month payback period.

Uranium production was estimated at 6.1 million pounds per year of uranium over a six-year mine life. Initial capital costs were pegged at $254 million while all-in cost was projected at $34.80 per pound of uranium.

"The project is estimated to have an all-in cost of production amongst the lowest cost uranium mines in the world, benefitting from a powerful combination of low initial capital costs and low cash operating costs," said chief executive David Cates.

Denison owns a 25.17% stake in the Midwest project while Orano Canada owns the rest. The project is located 25 kilometers from Denison and Orano Canada's McClean Lake uranium mill joint venture .

National Bank of Canada maintained its outperform rating and $3.75 price target on the company's shares after the news.

National Bank said it views the study as a positive de-risking event for the project, which represents 10% of the company's NAV of $3.18 per share.

Denison shares were last seen up $0.03 to $3.10 on the Toronto Stock Exchange.

Price: 3.10, Change: +0.03, Percent Change: +0.98