Canadian uranium exploration firm Denison Mines (NYSE:) reported top- and bottom-line progress in its final reported quarter. Nonetheless, its shares have misplaced greater than 30% in value since hitting their 52-week excessive of $2.14 on Nov. 10. So, is it clever to purchase the dip within the inventory regardless of falling uranium costs? Learn on.Based mostly in Toronto, Canada, uranium exploration and growth firm Denison Mines Corp. (DNN) is understood primarily for its flagship mission, its 95% owned Wheeler River uranium mission. The corporate additionally acquired a 50% possession stake in JCU (Canada) Exploration Firm on August 3, 2021. For the third quarter, ended September 30, 2021, DNN’s income elevated 247.8% year-over-year to CAD9.54 million ($7.52 million), whereas its web revenue got here in at CAD32.87 million ($25.91 million) in comparison with a CAD5.48 million ($4.32 million) loss within the year-ago interval.

Buyers’ optimism surrounding hovering uranium costs helped DNN’s shares hit their 52-week excessive of $2.14 on November 10. Nonetheless, in line with Buying and selling Economics knowledge, uranium futures fell to round $46 per pound, declining from their $48.10 two-week excessive reached on November 15. The inventory has misplaced 29.7% in value over the previous month to shut yesterday’s buying and selling session at $1.49. It’s presently buying and selling 30.4% under its 52-week excessive.

DNN’s toll milling operation at McClean Lake was suspended in the course of the second and third quarters of fiscal 2020 and once more in the course of the first quarter and the start of the second quarter of 2021 as a result of suspension of mining on the Cigar Lake mine due to the COVID-19 pandemic. So, amid rising COVID-29 delta variant circumstances in Canada and omicron variant fears, DNN’s near-term prospects look bleak.

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