Is Denison Mines Stock a Buy?
Denison Mines (NYSEMKT: DNN) has big plans for uranium mining, which means two things for investors. First, you have to believe that nuclear power will be a material piece of the global energy market in the future. And then you have to believe that Denison and its mines can live up to the company's promises, since it doesn't actually produce any uranium today. Here's what you need to know to decide if Denison Mines is worth buying.
Uranium has been a pretty rough commodity to invest in for a while now, even though prices are up off the lows they hit in 2016. In fact, despite the swift rise in 2020, uranium still only fetches around half the price it did in 2011. While low prices hurt in the near term, they generally help to balance out long-term supply and demand because producers usually curtail output when prices are weak. That's taken a bit of time to work through the uranium market, but it is happening, with some of the largest miners in the space having shuttered mines.
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Source Fool.com
