Energy
Denison Reports 24% Phoenix Completion and C$161.1 Million in Spending
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Denison Mines (DNN ) reported third-quarter results on November 4, 2026, estimating that its Phoenix in-situ recovery uranium mine was approximately 24% complete on September 30, 2026, after the first quarter of full-scale construction. Year-to-date project expenditures totaled C$161.1 million.
The completion measure covers more than construction at the site. Engineering, project construction management and owner’s costs were 32% complete, construction and construction indirect costs were 20% complete, and fabrication and delivery of equipment and materials were 32% complete. That mix matters because Denison’s spending and physical construction are not advancing at the same pace.
Site Work Prepares for Winter Construction
Full-scale construction began in July 2026 following site preparation and early works. President and CEO David Cates said Denison “prioritized schedule-critical and seasonally sensitive activities to capitalize on the summer construction season” during the quarter. By the end of October 2026, Denison estimated that nearly 50% of site civil work was complete.
The main access road from Highway 914 is available for use, the substation area is substantially complete, and the runway area has reached its final grade. Concrete work started in August 2026 and continues into the fourth quarter. By the end of October, the concrete needed to begin building the process plant during winter was substantially complete.
Direct Procurement Front-Loads Spending
Of the year-to-date total, C$105.0 million went to construction and construction indirect costs, while C$39.0 million went to equipment and materials procurement. Life-to-date procurement spending was approximately C$56.8 million. Denison estimates full-year 2026 project expenditures at C$278.6 million, including fourth-quarter estimates of C$39.9 million for procurement, C$68.5 million for construction and construction indirect costs, and C$9.1 million for engineering, project construction management and owner’s costs.
The spending pattern reflects Denison’s decision to procure key components directly instead of through contractors and to use modularization wherever possible. Denison makes progress payments as equipment is fabricated, front-loading the project spending curve relative to construction progress on site. Offsite fabrication is intended to sustain productivity during winter by separating equipment fabrication from onsite construction.
Fabrication has started on most process plant equipment. Equipment released for shipment includes the site transformer, substation e-house, high-voltage substation yard equipment, switchgear, generators, freeze plants, and certain process tanks and construction materials.
Phoenix North Drilling Extends Mineralization
The results also included early-stage exploration at Phoenix North, within the surface footprint of the mine site. Third-quarter hole WR-857D1 intersected 0.39% eU3O8 over 4.7 metres from 409.9 to 414.6 metres at the unconformity. Denison described it as the best mineralized hole in this sparsely drilled area. The hole is approximately 10 metres up-dip and along section of WR-857, which was completed in the second quarter of 2026.
Two October 2026 holes extended the drilling along strike. WR-868 intersected 0.67% eU3O8 over 2.5 metres approximately 50 metres northeast of WR-857, while WR-869A intersected mineralization highlighted by 0.07% eU3O8 over 2.2 metres about 50 metres southwest. Taken together, the holes intersected mineralization over 100 metres of strike length.
Phoenix North remains open in multiple directions, but its anticipated optimal target horizon has not been tested, and drilling continues into the fourth quarter. Denison continues to target construction completion and first production at Phoenix in the second half of 2028, approximately two years after full-scale construction began. The next test of that schedule is the winter program: whether the prepared concrete work and offsite equipment fabrication can sustain progress after the summer construction season.
