DNN - Why This $1 Uranium Stock Rocketed 59.6% in February
Shares of uranium company Denison Mines (NYSEMKT: DNN) soared a whopping 59.6% in the month of February, according to data provided by S&P Global Market Intelligence . That handily outran the Global X Uranium ETF 's (NYSEMKT: URA) 20.5% gain in the month, suggesting there was more to Denison's rally than just industry-specific news.
Denison Mines, and several other uranium stocks , soared on the very first day of February after Bank of America speculated that global demand for uranium could be as much as 26 million pounds more if the U.S. postponed closure of its aging nuclear plants due 2021 to 2030. Nuclear reactors run on uranium fuel.
By the second week of February, Denison shares were rallying to dizzying heights backed by several developments. To start, on Feb. 8, Denison approved a $24 million budget for 2021 to resume the environmental assessment process at its 90%-owned Wheeler River mine. Investors cheered the news as Wheeler River is Denison's flagship uranium mine under development, with first production expected in 2024. The next day, Denison announced encouraging exploratory drilling results at Phoenix, a uranium deposit at Wheeler River.
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Why This $1 Uranium Stock Rocketed 59.6% in February