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Denison Mines (DNN) Buys MaxPERF Tool Systems From Penetrators

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Denison Mines Corp. (DNN - Free Report) announced that it acquired fixed and mobile MaxPERF Tool Systems from Penetrators Canada Inc. As part of the agreement, Penetrators has agreed to exclusively work with Denison Mines for the use of MaxPERF Tool Systems for uranium mining applications and related services in Saskatchewan for a 10-year term.

This move will strengthen Denison Mines' existing competitive edge in deploying the low-cost In-Situ Recovery ('ISR') mining technology to its high-grade uranium reserves in the Athabasca Basin. DNN's ISR uranium mining approach is an excellent application of MaxPERF technology-permeability exposure, which will be used for injectivity and productivity.

MaxPERF has historically been employed in the oil and gas industry, and Denison  Mines identified it as a potentially valuable technique for improving permeability to enable ISR mining. The MaxPERF technology has been successfully used to increase permeability in ISR field studies done on Denison Mines’ potential ISR mining assets, including its flagship Phoenix uranium deposit.

DNN completed a groundbreaking multi-year technical de-risking program at the Phoenix deposit in 2023. It rigorously assessed and successfully applied the MaxPERF system to improve deposit permeability, including its deployment as part of the highly successful Feasibility Field Test program.

Denison Mines  reported adjusted earnings of 5 cents per share in the third quarter of 2023 against the adjusted loss of 1 cent reported in the prior-year quarter. The Zacks Consensus Estimate for the company’s third-quarter bottom line was pegged at a loss of 1 cent. It posted revenues of $2 million, flat year over year.

Price Performance

Denison Mines’ shares have gained 43.2% in the past year compared with the industry’s 1.9% growth.


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Zacks Rank & Stocks to Consider

DNN currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the basic materials space are Carpenter Technology Corporation (CRS - Free Report) , Ecolab Inc. (ECL - Free Report) and Alpha Metallurgical Resources, Inc. (AMR - Free Report) . These three companies currently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Carpenter Technology’s 2024 earnings is pegged at $3.96 per share. The consensus estimate for 2024 earnings has moved 11% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 14.3%. CRS shares have gained 29.8% in a year.

The Zacks Consensus Estimate for Ecolab’s 2024 earnings is pegged at $6.39 per share, indicating an increase of 22.7% from the prior year’s reported number. It has an average trailing four-quarter earnings surprise of 1.7%. ECL shares have gained 34.3% in a year.

Alpha Metallurgical Resources has an average trailing four-quarter earnings surprise of 9.6%. The Zacks Consensus Estimate for AMR’s 2024 earnings is pegged at $43.05 per share. Earnings estimates have moved 48% north in the past 60 days. AMR shares rallied 132% last year.

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