Denison Mines shares rose 4.4% on Tuesday. RBC Capital analyst Andrew Wong initiated coverage with an Outperform rating and a C$6.00 price target.
Wong expects a long-term structural deficit in the uranium market through the 2030s. RBC identified the flagship Phoenix project in the Athabasca Basin as Canada’s next potential uranium mine.
The bank highlighted the project’s low-cost profile and the company's strong balance sheet. The Phoenix project utilizes in-situ recovery mining, a method RBC describes as novel for the region.
RBC applied a Speculative Risk qualifier to the rating. This designation reflects the first-time application of in-situ recovery mining in the Athabasca Basin.