Phoenix (Wheeler River) Feasibility Study: C$1.57B NPV, 73% IRR
Denison Mines Corp.'s Phoenix (Wheeler River) in Athabasca Basin, Northern Saskatchewan, Canada has a Feasibility Study outlining an after-tax NPV of C$1.57B, an after-tax IRR of 73%, and initial capital of C$600M. The proposed mine plan runs 10 years.
Denison Mines Corp.'s Phoenix (Wheeler River) has reported Feasibility Study results for the uranium (u3o8) project in Athabasca Basin, Northern Saskatchewan, Canada. The study headlines an after-tax net present value of C$1.57B at a 8% discount rate. It reflects Denison Mines Corp.'s (DML.TO) latest disclosed economics for the asset.
Economics. The after-tax NPV is C$1.57B using a 8% discount rate. After-tax IRR is 73%. Initial capital expenditure is estimated at C$600M. The study models a payback period of 1 years. All-in sustaining costs are pegged at 18.41 USD/lb U3O8. Economics are based on US$68.89-US$78.36/lb U3O8 (Base Case); US$100/lb Case also shown.
Production and mine plan. The project envisions an in-situ recovery (isr) operation. Life of mine is 10 years. Average head grade is 11.7% U3O8 (reserves); 11.4% U3O8 (M&I resources).
Resources and ownership. Mineral reserves: 56.7 million lbs U3O8 in Proven & Probable (219,000 tonnes at 11.7% U3O8). Mineral resources: 70.6M lbs U3O8 @ 11.4% U3O8 Measured & Indicated (280,200 tonnes, 100% basis). The company holds a 95% interest in the project.
These figures are extracted from Denison Mines Corp.'s technical disclosures and reflect the most recent Feasibility Study on file. Compare this project against other developers and producers in our project economics database, and always verify the numbers against the original technical report before making any investment decision.
Our Analysis
- IRR after-tax
- 73%
higher than 90% of 10 projects we track
- NPV after-tax
- C$1.57B
- Initial capex
- C$600M
38% of NPV
- Payback
- 1yrs
- Mine life
- 10yrs
- Discount rate
- 8%
- Study price assumption
- US$68.89-US$78.36/lb U3O8 (Base Case); US$100/lb Case also shown
This project delivers a 73% after-tax IRR, placing it in the top decile of the uranium peers we track and well above the 15-20% threshold required to attract financing for a single-asset junior. The 1-year payback is exceptional, and the C$600M initial capex at 38% of NPV is capital-light, substantially reducing funding risk. The 8% discount rate used for NPV reporting is within standard range but is low; it flatters the C$1.57B NPV figure, so investors should temper that headline. The NPV sits at roughly 0.4x market cap—a gap that could signal the market has not yet priced in the project’s value, or equally, that skepticism exists around permitting, uranium offtake, or execution risk for a 10-year mine life.
The base-case price deck of US$68.89–US$78.36/lb is the key variable; the US$100/lb case shows further upside but is not the base. The single most important risk is uranium price volatility—a sustained drop below the study’s assumptions would compress returns rapidly given the short mine life and lack of operational leverage from a longer reserve base. Watch for offtake agreements and jurisdictional permitting timelines as the primary catalysts or derailers.
Our take, benchmarked against the project economics in the Mining Stocks database. Figures are estimates drawn from company technical reports — not investment advice; always verify against the source filing.