Denison Mines’ Increased Stake in Foremost Clean Energy Might Change The Case For Investing In Denison Mines (TSX:DML)

• Earlier in September 2025, Denison Mines Corp. exercised its equity participation right by acquiring 485,000 common shares of Foremost Clean Energy Ltd., bringing its ownership stake to approximately 19.17% and underscoring its commitment to uranium exploration in Saskatchewan’s Athabasca Basin.

• This move comes as investments from leading technology companies, driven by the surge in electricity consumption for AI data centers, have accelerated investor interest in uranium, with Denison Mines positioned as a prominent uranium supplier to meet these evolving energy demands.

• We’ll explore how Denison’s backing of Foremost Clean Energy highlights uranium’s growing role amid rising power needs from AI-driven technology.

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For anyone looking at Denison Mines as a potential investment, the key narrative centers on confidence in uranium’s long-term relevance, especially amid surging energy needs for AI data centers. Recent moves, such as Denison bolstering its stake in Foremost Clean Energy and advances at its core Athabasca Basin projects, strongly reinforce its commitment to nuclear fuel supply. Short-term share price catalysts have recently included a spike in uranium prices and Denison’s positive announcements on drilling success and regulatory milestones, factors that may remain influential if electricity demand from tech giants stays robust. The Foremost share acquisition echoes this trend, though its direct impact on earnings is likely secondary to Denison’s own resource projects and uranium market dynamics. However, the company’s limited cash runway, historic lack of consistent profitability, and high valuation versus industry peers are risks that should not be ignored, especially if uranium momentum stalls or anticipated demand falls short.
On the flip side, Denison’s cash position and persistent losses are key issues investors should be aware of.

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The Simply Wall St Community’s nine fair value estimates for Denison Mines range from just CA$0.05 up to CA$5 per share, with a particularly strong cluster below CA$2.50. While the excitement around uranium demand continues to drive discussion, several contributors have flagged Denison’s lack of current profitability and short cash runway as critical issues to watch. These alternative viewpoints highlight just how much sentiment and outlooks can vary, take a closer look if you want a broader picture.

Explore 9 other fair value estimates on Denison Mines – why the stock might be worth less than half the current price!

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include DML.TO.

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