Wheeler River - Gryphon PFS: C$864M NPV, 37.6% IRR
Denison Mines Corp.'s Wheeler River - Gryphon in Athabasca Basin, Northern Saskatchewan, Canada has a Pre-Feasibility Study (PFS) outlining an after-tax NPV of C$864M, an after-tax IRR of 37.6%, and initial capital of C$737M. The proposed mine plan runs 6.5 years.
Denison Mines Corp.'s Wheeler River - Gryphon has reported Pre-Feasibility Study (PFS) results for the uranium project in Athabasca Basin, Northern Saskatchewan, Canada. The study headlines an after-tax net present value of C$864M 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$864M using a 8% discount rate. After-tax IRR is 37.6%. Initial capital expenditure is estimated at C$737M. The study models a payback period of 1.92 years. All-in sustaining costs are pegged at 25.47 USD/lb U3O8. Economics are based on US$75/lb U3O8.
Production and mine plan. The project envisions an underground (conventional) operation. Life of mine is 6.5 years.
Resources and ownership. 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 PFS 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.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Probable | 1,275,000 tonnes | 1.8% U3O8 | 49.7 million lbs U3O8 |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Indicated | 1,643,000 tonnes | 1.7% U3O8 | 61.9M lbs U3O8 |
| Inferred | 73,000 tonnes | 1.2% U3O8 | 1.9M lbs U3O8 |
Our Analysis
At 37.6% after-tax IRR, the project ranks in the upper half of the 296 all commodities projects we track, and comfortably clears the ~15% after-tax return developers typically need to finance a build. The study discounts at 8%, within the standard reporting range. Its after-tax NPV is below the company's market capitalisation (roughly 0.2x, on a currency-adjusted basis) — a modest slice of the company's value, as you'd expect for one asset in a larger portfolio. Initial capital runs to about 85% of project NPV, making it moderately capital-intensive; funding that build is the central execution risk. A modelled payback of 1.9 years is fast for a project of this type. The project is located in Athabasca Basin, Northern Saskatchewan, Canada, a factor in its overall risk profile.
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.