10 Best Canadian Penny Stocks to Buy Now

03. Denison Mines Corp. (NYSE:DNN)

Number of Hedge Fund Holders: 21

Denison Mines Corp. (NYSE:DNN) is a Canadian uranium development company that stands out for its high-quality assets and strong financial position. The company’s flagship project, Wheeler River, which includes the Phoenix and Gryphon deposits, is a cornerstone of its growth strategy. Phoenix, in particular, has impressive projected economics, with an all-in sustaining cost (AISC) below $20/lb and an after-tax net present value (NPV) of approximately $1.3 billion at current uranium prices. The internal rate of return (IRR) for Phoenix is exceptionally high, above 90%, making it a robust project even if costs rise.

Denison Mines Corp. (NYSE:DNN) strategic foresight is evident in its acquisition of 2.5 million pounds of uranium at $29.6/lb in 2021, which has since appreciated significantly. The company currently holds 2.2 million pounds, valued at around $180 million. This, combined with its substantial cash reserves of C$121 million, positions Denison as a well-capitalized player in the uranium industry, with no debt burden to weigh it down.

According to analysts, Denison Mines Corp. (NYSE:DNN) presents an attractive valuation, particularly in light of current uranium market conditions. With an enterprise value to net asset value (EV/NAV) ratio of 0.5, based on a uranium price of $80 per pound, the stock is trading at a discount. This undervaluation, combined with high-quality assets and strong financial metrics, offers a compelling investment opportunity within the uranium sector. As the long-term contract price of uranium continues to rise, Denison Mines is well-positioned to benefit from the increasing demand for this vital resource. This makes Denison Mines Corp. (NYSE:DNN) a standout choice in our list of ten best Canadian penny stocks to buy now.

In the second quarter of 2024, there were 21 hedge funds holding positions in Denison Mines Corp. (NYSE:DNN), as compared to 22 in the previous quarter according to Insider Monkey’s database. The total value of these holdings is approximately $95.36 million. Steve Cohen’s Point72 Asset Management held the largest stake among these hedge funds during this period.