Denison Mines(DNN) - 2025 Q3 - Quarterly Report

Financial Performance - Revenues for the nine months ended September 30, 2025, were CAD 3,696 thousand, a 29.6% increase compared to CAD 2,853 thousand for the same period in 2024[2] - Net loss for the nine months ended September 30, 2025, was CAD 166,001 thousand, compared to a net loss of CAD 61,617 thousand for the same period in 2024, indicating a significant increase in losses of 169.5%[2] - The company reported a comprehensive loss of CAD 166,109 thousand for the nine months ended September 30, 2025, compared to CAD 61,668 thousand for the same period in 2024, representing an increase of 169.5%[2] - The segment loss for the three months ended September 30, 2025, was $21,641,000, with total revenues of $1,045,000[78] - For the nine months ended September 30, 2025, the total revenues were $3,696,000, with a segment loss of $61,645,000[77] Assets and Liabilities - Total assets increased to CAD 1,107,175 thousand as of September 30, 2025, up from CAD 663,613 thousand at December 31, 2024, representing a growth of 66.7%[1] - Total liabilities increased to CAD 704,273 thousand as of September 30, 2025, from CAD 99,291 thousand at December 31, 2024, a rise of 608.5%[1] - The company’s equity decreased to CAD 402,902 thousand as of September 30, 2025, down from CAD 564,322 thousand at the beginning of the period, a decline of 28.5%[3] - As of September 30, 2025, total current assets were $676,000, down from $3,226,000 at December 31, 2024, while total net assets decreased to $38,966,000 from $41,326,000[36] Cash Flow and Cash Equivalents - Cash and cash equivalents rose to CAD 471,258 thousand at the end of September 2025, compared to CAD 108,518 thousand at the beginning of the period, reflecting an increase of 335.5%[4] - The company reported a net cash used in operating activities of CAD 59,714 thousand for the nine months ended September 30, 2025, compared to CAD 32,368 thousand for the same period in 2024, indicating an increase of 84.7%[4] - Cash and cash equivalents increased to $471,258,000 as of September 30, 2025, from $108,518,000 at the end of 2024[87] Investments and Inventory - The company holds 1,900,000 pounds of physical uranium with a market value of CAD 216,901,000 as of September 30, 2025, down from CAD 231,088,000 for 2,200,000 pounds at December 31, 2024, indicating a decrease of 6% in market value[30] - The company's inventory balance increased to CAD 10,060,000 as of September 30, 2025, compared to CAD 5,844,000 at December 31, 2024, reflecting a growth of 72%[22] - The total investments decreased slightly to CAD 246,924,000 at September 30, 2025, from CAD 252,135,000 at December 31, 2024, a decline of approximately 2%[23] Share Capital and Equity - The company issued 1,152 thousand shares through options exercised, contributing to a total share capital of CAD 1,667,975 thousand as of September 30, 2025[3] - The Company issued 1,473,440 common shares, increasing the total outstanding shares to 897,186,541 as of September 30, 2025[66] Expenses and Costs - Operating expenses for the nine months ended September 30, 2025, totaled CAD 3,818 thousand, up from CAD 3,617 thousand in the same period of 2024, marking an increase of 5.5%[2] - The company incurred costs of CAD 2,132,000 on mining activities and CAD 286,000 on processing activities during Q3 2025, with no inventory sold during the quarter[22] - The Company incurred letter of credit fees of $322,000 during the nine months ended September 30, 2025, compared to $314,000 in the same period of 2024[91] Debt and Financing - The company issued $345,000,000 in convertible senior unsecured notes in August 2025, with a net receipt of $458,994,000 after transaction costs[55] - The Notes mature on September 15, 2031, and any unconverted Notes will have their principal amount repaid in cash at maturity[57] - The Company recorded interest expense of $5,012,000 for the three and nine months ended September 30, 2025, at an effective interest rate of 13.76%[62] Other Income and Tax - The Company recognized other income of $16,790,000 for the three months ended September 30, 2025, compared to a loss of $10,669,000 in the same period of 2024[74] - The Company recognized deferred tax recoveries of $6,528,000 during the nine months ended September 30, 2025, including previously unrecognized Canadian tax assets of $5,850,000[80] Capital Expenditures - Capital additions for property, plant, and equipment totaled $30,980,000 for the nine months ended September 30, 2025[77] - The carrying value of property, plant, and equipment increased to $280,587,000 as of September 30, 2025, from $259,661,000 at December 31, 2024[38] Reclamation and Obligations - Reclamation obligations increased to $32,870,000 as of September 30, 2025, compared to $32,314,000 at December 31, 2024[51] - The Company has provided irrevocable standby letters of credit totaling $22,972,000 for reclamation obligations as of September 30, 2025[53]