Wheeler River - Phoenix Feasibility Study: C$1.57B NPV, 73% IRR
Denison Mines Corp.'s Wheeler River - Phoenix in Saskatchewan, Canada (Athabasca Basin) 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 Wheeler River - Phoenix has reported Feasibility Study results for the uranium (u3o8) project in Saskatchewan, Canada (Athabasca Basin). 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 Base case US$68.89-US$78.36/lb U3O8; $100/lb case also presented. USD:CAD FX 1.35.
Production and mine plan. The project envisions an in-situ recovery (isr) operation. Life of mine is 10 years. Average head grade is 11.4% U3O8 (M&I); 46.0% U3O8 Zone A high-grade domain.
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 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.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Proven & Probable | 219,000 tonnes | 11.7% U3O8 | 56.7 million lbs U3O8 |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured & Indicated | 280,200 tonnes | 11.4% U3O8 | 70.6M lbs U3O8 |
Our Analysis
- IRR after-tax
- 73%
higher than 89% of 9 projects we track
- NPV after-tax
- C$1.57B
higher than 100% of 9 projects we track
- Initial capex
- C$600M
38% of NPV
costlier than 78% of 9 projects we track
- Payback
- 1yrs
slower than 9% of 308 projects we track
- Mine life
- 10yrs
- Discount rate
- 8%
- Study price assumption
- Base case US$68.89-US$78.36/lb U3O8; $100/lb case also presented. USD:CAD FX 1.35
A 73% after-tax IRR on a C$600M build is the kind of arithmetic that usually invites a second look, and here the second look mostly holds up. The returns rank in the top quartile of the nine uranium projects we track, the C$1.57B after-tax NPV ranks above all of them, and payback lands at a single year, faster than 91% of the 308 projects in our wider coverage. Just as telling, the capital requirement is modest relative to the prize: capex is 38% of NPV, lower than 22% of the uranium peers, so the value is not being bought with an outsized upfront cheque.
The funding picture is where this separates from the typical development story. A C$600M build against a US$2.29B market cap is roughly 0.2x equity value, and the NPV is about 0.5x market cap, so the company could plausibly fund this without the transformative dilution that sinks smaller developers. That same mid-cap scale means the asset is not the whole company: it is one of 14 projects in the portfolio, which tempers both the upside and the risk of a single-asset bet. Saskatchewan's Athabasca Basin is a favourable jurisdiction, and the feasibility study carries the tighter confidence band of a build-ready estimate rather than a scoping guess.
The catch is time and price. Ten years of mine life is short, and the economics rest on a base case of US$68.89 to US$78.36/lb U3O8, with a US$100/lb sensitivity case offered alongside. The single question is whether a decade of production at those realisations can carry the NPV the headline implies, or whether the returns are front-loaded by the fast payback and thin thereafter.
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.
Get the next one first
Be the first to know about new mining results, and how they compare to other projects.