Denison Mines Stock Spikes After Cameco Announces a Production Cut
Shares of Denison Mines (NYSEMKT: DNN) surged on Thursday and were up more than 11% at 11:45 a.m. EST. The catalyst was Cameco's (NYSE: CCJ) decision to suspend production at two of its facilities due to weaker uranium prices. Those suspensions, however, could boost prices, which in theory would benefit other uranium industry companies like Denison Mines.
Cameco announced Wednesday that it would temporarily suspend production at its McArthur River mining and Key Lake milling operations at the end of January. CEO Tim Gitzel said:
With the continued state of oversupply in the uranium market and no expectation of change on the immediate horizon, it does not make economic sense for us to continue producing at McArthur River and Key Lake when we are holding a large inventory.
Source: Fool.com
