Valued at a market cap of $2.7 billion, Denison Mines (TSX:DML) is engaged in the acquisition, exploration, and development of uranium-bearing properties in Canada. It holds a 95% interest in its flagship project, the Wheeler River uranium project, located in the Athabasca Basin region in northern Saskatchewan.
Over the last five years, DML stock has returned over 300% to shareholders, outpacing the broader market by a significant margin. Let’s see if the TSX stock is still a good buy right now.
Is Denison Mines a good stock to hold right now?
Denison Mines reported notable progress on its flagship Phoenix In-Situ Recovery project during the first quarter, as the Canadian Nuclear Safety Commission (CNSC) scheduled critical public hearings for late 2025 that could clear the path for construction to begin in early 2026.
The uranium developer has achieved approximately 75% completion of total engineering for Phoenix and has already committed over $74 million toward long-lead capital purchases, positioning the company to maintain its guidance for first production by mid-2028. If successful, Phoenix would become the first new large-scale uranium mine in northern Saskatchewan since Cigar Lake was commissioned in 2014.
The CNSC announced that public hearings for the Wheeler River Uranium Project will be held in two parts on October 8, 2025, and between December 8-12, 2025, representing the final step in the federal approval process for the project’s Environmental Assessment and Licence to Prepare and Construct a Uranium Mine and Mill. This timeline supports Denison’s plan to commence construction in early 2026 following anticipated regulatory approvals.
CEO David Cates highlighted Denison’s strong financial position, noting it holds 2.2 million pounds of physical uranium, maintains a robust cash balance, and carries no debt. This financial strength enables the company to fund both pre-Final Investment Decision investments in Phoenix and future growth initiatives.
Denison also reported encouraging developments at its McClean Lake Joint Venture with Orano Canada, where site preparation activities have recommenced for the anticipated start of mining at the McClean North deposit using the patented Surface Access Borehole Resource Extraction mining method.
Denison has been actively expanding its exploration exposure through strategic partnerships. It entered agreements with Cosa Resources and Foremost Clean Energy, collaborating on the exploration of several non-core properties.
Early results have been promising, with Cosa identifying a two-kilometre strike extension of the Hurricane Trend at the Murphy Lake North property, while Foremost reported a new uranium mineralization discovery at the Hatchet Lake property. At the corporate level, Denison strengthened its board with three new appointments during the quarter.
What is the target price for the TSX mining stock?
Analysts tracking Denison Mines expect sales to rise from US$2.79 million in 2024 to US$637 million in 2029. While Denison reported a loss per share of US$0.07 in 2024, it is forecast to report adjusted earnings per share of US$0.31 in 2029.
The uranium mining company is also projected to end 2029 with a free cash flow of US$265 million, compared to a US$119 million outflow in 2025.
If DML stock is priced at 15 times forward earnings, which is quite reasonable, it will trade around US$4.65 per share in early 2029, indicating an upside potential of over 100% from current levels. According to consensus estimates, the TSX mining stock trades at a 31% discount as of July 2025.
