Denison Mines (DNN +1.75%) stock started off the New Year right, soaring 11.3% through 11:25 a.m. ET Friday, after the uranium mining company announced this morning that it's ready to start construction of its "proposed Phoenix In-Situ Recovery ... uranium mine."
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Phoenix rising
Denison calls Phoenix its "flagship" project, and says it will "become the first new large-scale uranium mine built in Canada since Cigar Lake."
"Significant regulatory, engineering, and construction planning progress has been made throughout 2025, which has positioned Phoenix in a construction-ready state," says the company. Construction will take two years, and "provided final regulatory approvals to commence construction are received in Q1'2026," this means uranium production might conceivably begin by mid-2028."
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What this means for Denison stock
Denison continues to anticipate that widespread adoption of nuclear energy around the world will drive increased demand for uranium, creating a ready market for output from the Phoenix project. As regards regulatory approvals, management notes "Canada's objective to develop sustainable and environmentally responsible 'nation building' mining projects to reinvigorate Canada's natural resources sector."
All of the above bodes well both for getting Phoenix online on time and according to schedule, as well as for there being plenty of demand for Denison's uranium once the new mine begins producing.
The next step will be to receive final regulatory approval from the Canadian Nuclear Safety Commission, after which Denison will make a final investment decision on whether to proceed with construction. Assuming this is in the affirmative, the company anticipates it will need to spend $600 million to complete construction -- and Denison has "over $700 million of cash, physical uranium and investments" with which to pay for it.
Things are looking good for Denison.
