Denison Mines Corp. (TSX: DML) shared on Thursday its Q2 2022 financial results, highlighting a quarterly revenue of $6.8 million. This is an increase from Q2 2021’s revenue of $4.6 million.
The mining firm touts that this includes the gain from selling around 40,000 U3O8 pounds–its share of production from the SABRE test mining program completed at the McClean Lake Joint Venture in 2021. The uranium was sold at $74.65 per U3O8 pound.
“During the second quarter, Denison capitalized on rising uranium prices with the sale of the Company’s share of Canadian-origin production received from the successful SABRE mining test completed by the McClean Lake Joint Venture in 2021,” said CEO David Cates. “The SABRE test resulted in the production of over 175,000 lbs U3O8. By comparison, this test production represents over eight times the total mine production of uranium reported in the United States for 2021.”
The firm, however, recorded $21.6 million in expenses for the quarter, leading the firm to notch an operating loss of US$14.8 million–a decrease from last year’s loss of US$2.0 million. The year-on-year increase in expenses is heavily tied to losses in fair value changes on the company’s uranium and equity investments totaling US$27.4 million.
This also led the firm to end with a net loss of $16.1 million, down from a net loss of $2.4 million in the comparable period a year ago. This translates to $0.02 loss per share.
The company also ended the quarter with $56.8 million in cash and cash equivalents, putting the balance of the current assets at $74.3 million. Meanwhile, current liabilities ended at $19.1 million.
The Canadian uranium explorer recently entered a bidding war by putting forward a superior offer for the acquisition of UEX Corporation (TSX: UEX) against Uranium Energy Corp (NYSE: UEC).
Denison Mines Corp. last traded at $1.49 on the TSX.
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