Denison Mines(DNN) - 2024 Q3 - Quarterly Report

Financial Performance - Total revenues for the three months ended September 30, 2024, were $695,000, a decrease of 10.6% compared to $777,000 for the same period in 2023[6] - The net loss for the period was $25,767,000, compared to a net income of $58,237,000 for the same period in 2023, indicating a significant decline[6] - The company reported a comprehensive loss of $25,751,000 for the three months ended September 30, 2024, compared to a comprehensive income of $58,123,000 for the same period in 2023[6] - For the nine months ended September 30, 2024, the total revenues from the Mining segment were $695,000, while the total segment loss was $15,298,000[88] - The company reported a segment loss of $31,700,000 for the three months ended September 30, 2023, with total revenues of $763,000[89] Operating Expenses - Operating expenses increased to $1,030,000 for the three months ended September 30, 2024, from $797,000 in the same period last year, reflecting a rise of 29.2%[6] - The company incurred exploration expenses of $2,834,000 for the three months ended September 30, 2024, up from $2,052,000 in the same period in 2023, an increase of 37.9%[6] - Share-based compensation expense for the nine months ended September 30, 2024, totaled $3,425,000, compared to $2,686,000 for the same period in 2023[65] - Key management personnel compensation for the three months ended September 30, 2024, was $1,709,000, compared to $1,056,000 for the same period in 2023, reflecting a significant increase[99] Assets and Liabilities - Total liabilities increased to $86,977,000 as of September 30, 2024, compared to $84,819,000 at the end of 2023, representing a rise of 2.6%[2] - Total equity decreased to $584,910,000 from $641,784,000, reflecting a decline of 8.8%[2] - Cash and cash equivalents decreased to $105,933,000 from $131,054,000, a decline of 19.2%[3] - The company’s total financial liabilities, including accounts payable and accrued liabilities, amounted to $14,957,000 as of September 30, 2024, compared to $11,239,000 as of December 31, 2023[107] - Accounts payable and accrued liabilities increased to $12,912,000 as of September 30, 2024, up from $10,822,000 at December 31, 2023[48] Investments - The company holds 2,200,000 pounds of physical uranium with a market value of $242,780,000, equating to $81.75 per pound[30] - Total investments decreased to $267,710,000 at September 30, 2024, from $302,897,000 at December 31, 2023, reflecting a reduction of approximately 11.6%[28] - The investment in joint venture (JCU) increased to $18,173,000 at September 30, 2024, up from $17,290,000 at December 31, 2023, indicating a growth of approximately 5.1%[34] - The company made additional investments in JCU amounting to $2,615,000 during the nine months ended September 30, 2024[35] - The total net assets of JCU increased to $36,346,000 at August 31, 2024, from $34,580,000 at December 31, 2023, representing an increase of approximately 5.1%[39] Cash Flow and Financial Position - The company reported interest income of $6,173,000 for the nine months ended September 30, 2024, compared to $2,321,000 for the same period in 2023[77] - The change in non-cash working capital items resulted in a positive cash flow of $1,124,000 for the nine months ended September 30, 2024[77] - The fair value of cash and cash equivalents as of September 30, 2024, was $105,933,000, down from $131,054,000 as of December 31, 2023[107] - The company incurred letter of credit fees of $314,000 during the nine months ended September 30, 2024, compared to $320,000 for the same period in 2023[109] Revenue Recognition - Deferred revenue decreased to $34,415,000 as of September 30, 2024, from $34,958,000 at December 31, 2023, with $2,853,000 of toll milling revenue recognized during the nine months ended September 30, 2024[49][54] - The Company recognized a total of $2,601,000 in production-based revenue from toll milling for the nine months ended September 30, 2023, based on production of 10,310,000 pounds U3O8[55] Market and Fair Value - Investments in uranium are categorized in Level 2 and measured at fair value based on the month-end spot price for uranium[108] - The fair value of equity instruments-shares as of September 30, 2024, was $10,455,000, slightly up from $10,390,000 as of December 31, 2023[107] - There were no transfers between levels 1, 2, and 3 in the fair value hierarchy during 2024 and 2023[106] Other Financial Metrics - The accumulated other comprehensive income balance at September 30, 2024, was $1,767,000, down from $1,818,000 at December 31, 2023[75] - The company experienced a foreign exchange loss of $308,000 for the three months ended September 30, 2024, compared to a gain of $803,000 for the nine months ended September 30, 2023[75] - The company incurred $360,000 in expenditures related to the earn-in option for the Kindersley Lithium Project, with a total cash payment of $800,000 made to Grounded Lithium[47] - The company entered into an option agreement with Foremost Clean Energy Ltd, acquiring 1,369,810 shares valued at $5,876,000 for an initial 20% ownership in 10 uranium exploration properties[115] Capital Expenditures - Capital additions for property, plant, and equipment totaled $7,213,000 for the nine months ended September 30, 2024[84] - As of September 30, 2024, the company has $9,900,000 in committed capital purchases related to the Wheeler Joint Venture, expected to be realized over the next 12 to 18 months[111]