Denison Mines Corp. · TSX:DML
Denison Mines — Shareholder Meeting (May 2016)
28 slides from Denison Mines's shareholder meeting presentation, May 5, 2016
Slide 1: Denison Mines Corp. Annual General Meeting
Denison Mines Corp. Uranium Development & Exploration in the Eastern Athabasca Basin Annual General Meeting May 5, 2016 TSX: DML | NYSE MKT: DNN
Slide 2: Denison Mines Corp. - Lead Independent Director
Denison Mines Corp. Uranium Development & Exploration in the Eastern Athabasca Basin Catherine J.G. Stefan Lead Independent Director
Slide 3: Audited Financial Statements
Audited Financial Statements TSX: DML | NYSE MKT: DNN | 3
Slide 4: Board of Directors - Nominees
Board of Directors - Nominees Hyung Mun Bae W. Robert Dengler TSX: DML | NYSE MKT: DNN | 4
Slide 5: Board of Directors - Nominees
Board of Directors - Nominees Brian D. Edgar Ron F. Hochstein TSX: DML | NYSE MKT: DNN | 5
Slide 6: Board of Directors - Nominees
Board of Directors - Nominees Lukas H. Lundin William Rand TSX: DML | NYSE MKT: DNN | 6
Slide 7: Board of Directors - Nominees
Board of Directors - Nominees Catherine J. G. Stefan TSX: DML | NYSE MKT: DNN | 7
Slide 8: Building a Leading Uranium Company
Denison Mines Corp. Uranium Development & Exploration in the Eastern Athabasca Basin Building a Leading Uranium Company David Cates President & CEO
Slide 9: Cautionary Statements & References
Cautionary Statements & References Cautionary Statements: This presentation includes forward-looking information or forward-looking statements under Canadian and U.S. securities laws that involve risks, uncertainties and other factors that could cause actual results to differ materially from those e
Slide 10: Company believes in strong long term nuclear fundamentals
“The Company believes in the strong long term fundamentals of the nuclear energy industry, which is backed by global growth in nuclear power generation capacities and a shortage of low cost future sources of uranium production in the development pipeline.” Denison News Release, May 4, 2016
Slide 11: Strong Uranium Market Fundamentals
Strong Uranium Market Fundamentals • Analysts and industry experts point to looming supply shortfall • Existing production sources generally flat around 150 Mlbs U3O8 per year • Timing depends on demand growth and ability for new mine production to emerge and “fill the gap” • How will new production
Slide 12: Demand Growth to be Driven by Asia
Demand Growth to be Driven by Asia • Expected global nuclear capacities increasing by ~40% + ~40% from 2015 to 2030 (~3%/year on avg.) • Growth is driven by emerging Chinese & Indian nuclear energy programs with a primary objective of increasing sources of clean power • Growth in China is already we
Slide 13: Building a Leading Uranium Company
Building a Leading Uranium Company 1. Focus on the Athabasca Basin • Saskatchewan: leading jurisdiction for mining investment & uranium production • Sale of U.S. Mining business in 2012 and Mongolia assets in 2015 • Combination of African assets with Govi-Ex Uranium Inc. announced in 2016 2. Advance
Slide 14: Denison & GoviEx to Combine African Assets
Denison & GoviEx to Combine African Assets 25% Stake In GoviEx (CSE: GXU) Denison’s African Assets Proposed transaction gives Denison exposure to GoviEx’s flagship Madaouela project in Niger, while finding a strategic home for Denison’s African assets Madaoulea is one of the world’s most advance
Slide 15: Infrastructure Rich Eastern Athabasca Basin
Infrastructure Rich Eastern Athabasca Basin Northern Saskatchewan, Canada TSX: DML | NYSE MKT: DNN | 15
Slide 16: Building a Leading Uranium Company
Building a Leading Uranium Company 1. Focus on the Athabasca Basin • Saskatchewan: leading jurisdiction for mining investment & uranium production • Sale of U.S. Mining business in 2012 and Mongolia assets in 2015 • Combination of African assets with Govi-Ex Uranium Inc. announced in 2016 2. Advance
Slide 17: Wheeler River PEA: +20% IRR at Current Prices
Wheeler River PEA : +20% IRR at Current Prices (1) Strategy: Co-development of the high-grade Gryphon and Phoenix deposits as a single underground mining operation, leveraging existing regional infrastructure, including assumed processing at Denison’s 22.5% owned McClean Lake mill Price Protected: 2
Slide 18: Wheeler River: Strategic Development Plan
Wheeler River: Strategic Development Plan Phase 2: Phoenix Production Phase 1: Gryphon Production • Underground freezing + Jet Bore mining • Conventional underground mining • 9 years at 7.0M lbs U3O8 / year (73t/d) (1) • 7 years at 6.0M lbs U3O8 / year (399t/d) (1) • Drift to Phoenix while mining Gr
Slide 19: Looking Ahead for the Wheeler River Project
Looking Ahead for the Wheeler River Project Indicative Post-Tax Results to Denison (60%) Justify Advancement(1) Indicative Post-Tax Post-Tax IRR NPV (CAD) Post-Tax IRR NPV (CAD) Results to Denison Base Case 17.8% $206M Prod’n Case 29.2% $548M (60%) PFS Preliminary 2016/17 Feasibility Project Assessm
Slide 20: Building a Leading Uranium Company
Building a Leading Uranium Company 1. Focus on the Athabasca Basin • Saskatchewan: leading jurisdiction for mining investment & uranium production • Sale of U.S. Mining business in 2012 and Mongolia assets in 2015 • Combination of African assets with Govi-Ex Uranium Inc. announced in 2016 2. Advance
Slide 21: Exploration Continues at Wheeler River
Exploration Continues at Wheeler River 2016 Exploration Plan K North • 47,000 metres of drilling ~ 6 km • CAD$10M Budget (Denison’s share CAD$6M) • Numerous targets in the vicinity of Gryphon - along the K-North trend K Central • New High-Grade uranium mineralization discovered north of Gryphon depo
Slide 22: New High Grade Discovery North of Gryphon
New High Grade Discovery North of Gryphon Winter 2016 Exploration Results • Discovery: New mineralization ~100 metres north & northwest of Gryphon deposit • D-Series: WR-633D1, 641, 646 & 651 may represent the down plunge extent of the D-Series lenses roughly 180m up plunge • 21,800 metres, 32 drill
Slide 23: Building a Leading Uranium Company
Building a Leading Uranium Company 1. Focus on the Athabasca Basin • Saskatchewan: leading jurisdiction for mining investment & uranium production • Sale of U.S. Mining business in 2012 and Mongolia assets in 2015 • Combination of African assets with Govi-Ex Uranium Inc. announced in 2016 2. Advance
Slide 24: Uniquely Diversified Asset Base
Uniquely Diversified Asset Base • Denison’s Flagship property in • Strategic high-grade AB uranium mill eastern Athabasca Basin (AB) • Expected to have up to • Gryphon + Phoenix 6 M lbs/year excess co-development milling capacity • PEA completed 1H16 Wheeler McClean by end of 2016 with 20.4% IRR Riv
Slide 25: Building a Leading Uranium Company
Building a Leading Uranium Company 1. Focus on the Athabasca Basin • Saskatchewan: leading jurisdiction for mining investment & uranium production • Sale of U.S. Mining business in 2012 and Mongolia assets in 2015 • Combination of African assets with Govi-Ex Uranium Inc. announced in 2016 2. Advance
Slide 26: Wheeler River PEA illustrates potential to generate attractive IRR
“With the Wheeler River PEA illustrating the project's potential to generate an attractive IRR, based on the current long-term contract price of uranium, Denison is well positioned to build on a solid foundation and continue to invest in the people and the Province of Saskatchewan.” Denison News Rel
Slide 27: Questions?
‘enison Mines Questions?
Slide 28: Denison Mines Corp. Annual General Meeting
Denison Mines Corp. Uranium Development & Exploration in the Eastern Athabasca Basin Annual General Meeting May 5, 2016 TSX: DML | NYSE MKT: DNN