Denison Mines(DNN) - 2022 Q1 - Quarterly Report

Financial Performance - Total revenues for the year ended December 31, 2021, were CAD 20,000,000, an increase from CAD 14,423,000 in 2020, representing a growth of approximately 38%[33] - Operating expenses increased to CAD 12,901,000 in 2021 from CAD 10,594,000 in 2020, reflecting a rise of about 22%[33] - Net income for the period was CAD 18,977,000, compared to a net loss of CAD 16,283,000 in the previous year, indicating a significant turnaround[34] - The company reported a comprehensive income of CAD 18,978,000 for the period, compared to a loss of CAD 15,642,000 in the previous year[34] - Basic and diluted net income per share for 2021 was CAD 0.02, compared to a loss of CAD 0.03 per share in 2020[34] Assets and Liabilities - Total assets reached CAD 510,284,000, up from CAD 320,690,000, marking an increase of approximately 59%[32] - Total liabilities increased to CAD 113,593,000 from CAD 93,405,000, which is an increase of about 22%[32] - Total equity rose to CAD 396,691,000, compared to CAD 227,285,000, reflecting an increase of approximately 74%[37] - The total accounts payable and accrued liabilities balance as of December 31, 2021, is $8,590,000, an increase from $7,178,000 in 2020[170] Cash and Cash Equivalents - Cash and cash equivalents increased to $63,998 thousand in 2021 from $24,992 thousand in 2020, representing a growth of 156%[31] - Total cash and cash equivalents at the end of the period increased to CAD 63,998,000 from CAD 24,992,000, reflecting a strong liquidity position[40] Investments - Investments in uranium amounted to $133,114 thousand as of December 31, 2021, with no prior balance reported[31] - The company acquired 2,500,000 pounds of physical uranium at a cost of $91,674,000, held as a long-term investment[139] - The company sold 32,500,000 common shares of GoviEx Uranium Inc. for net proceeds of $12,826,000 and issued warrants for $2,774,000, totaling gross proceeds of $15,600,000[140] - The company completed the acquisition of a 50% interest in JCU for $20,500,000 plus transaction costs, with an investment balance of $21,392,000 as of December 31, 2021[145][146] Internal Control and Compliance - The Company maintained effective internal control over financial reporting as of December 31, 2021, according to the independent auditor's opinion[22] - The Company’s internal control over financial reporting was evaluated based on the Internal Control – Integrated Framework, 2013, and found effective[22] - There were no changes in the Company's internal control over financial reporting during 2021 that materially affected its effectiveness[8] Revenue Recognition - Revenue from pre-sold toll milling services is recognized as services are provided, with adjustments made to the transaction price based on changes in expected timing or volume[113] - The Company recognized $3,207,000 in toll milling revenue in 2021, based on Cigar Lake toll milling production of 12,159,000 pounds U3O8[177] Reclamation and Provisions - The total reclamation obligations decreased from $38,420,000 at December 31, 2020, to $37,532,000 at December 31, 2021, a decline of about 2.3%[186] - The undiscounted estimated future reclamation costs for Elliot Lake increased from $32,335,000 at December 31, 2020, to $35,837,000 at December 31, 2021, an increase of approximately 15.5%[187] - The current portion of reclamation obligations increased from $802,000 at December 31, 2020, to $1,181,000 at December 31, 2021, an increase of approximately 47%[186] Shareholder Information - The company issued and outstanding common shares increased to 812,429,995 from 678,981,882, representing a growth of about 20%[32] - The company recognized a termination payment of $5,848,000 from UPC, which was included in revenue following the completion of the UPC Transaction[118] Other Financial Information - The Company’s post-employment benefits plan is not funded, with significant assumptions including a discount rate of 1.75%[182] - The fair value of the February 2021 warrants increased from $0.2215 at issuance to $0.4032 at December 31, 2021, reflecting an increase of approximately 82%[197] - The fair value of the March 2021 warrants rose from $0.2482 at issuance to $0.3563 at December 31, 2021, indicating an increase of about 43.6%[200]