Issue #160

2 CCS Projects Picks Under $5

The global transition toward a low-carbon economy is no longer a distant policy goal—it is an active, multi-trillion-dollar industrial migration. While speculative green tech startups capture headlines, the real progress is being made by the companies building the physical infrastructure of decarbonization. From carbon capture and storage (CCS) projects to the baseload clean energy required to power them, the focus has shifted from ambitious promises to tangible, scalable solutions.

This is where the energy transition moves from political rhetoric to industrial reality. To achieve true decarbonization, the market requires massive capital deployment into proven, carbon-free baseload power and infrastructure. For investors, the most compelling opportunities aren't the overpriced market darlings, but the deeply discounted enablers of this transition that are quietly positioning themselves for massive demand.

👉 One company is establishing itself as a premier domestic developer of clean, carbon-free nuclear fuel in the United States, essential for powering the next generation of baseload energy.

👉 The other is pioneering low-cost, high-grade extraction in Canada's premier basin, bringing highly efficient production to the global clean energy supply chain.

👉 Both names trade for under $5 per share, offering asymmetric entry points into the backbone of the global energy transition.

In this edition, we break down enCore Energy Corp. (NASDAQ: EU) and Denison Mines Corp. (AMEX: DNN)—two critical players trading under $5 that are vital to the clean energy transition and the future of CCS projects.

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enCore Energy Corp. (NASDAQ: EU) is a prominent player in the clean energy transition, positioned as a leading domestic developer and producer of uranium in the United States. Operating under the banner of "America's Clean Energy Company™," enCore is focused on providing the essential fuel needed to power the next generation of carbon-free, nuclear baseload energy. As global economies shift away from fossil fuels to combat climate change, nuclear power has emerged as an indispensable component of the clean energy mix due to its ability to provide reliable, non-intermittent electricity. enCore Energy is strategically leveraging its extensive asset portfolio, primarily located in Texas, Wyoming, and South Dakota, to meet the surging domestic demand for uranium, thereby securing America’s energy independence and supporting global decarbonization goals.

Business Model and Revenue Streams 📦

enCore Energy Corp. operates a highly specialized business model centered on the discovery, acquisition, and extraction of uranium using In-Situ Recovery (ISR) technology. Unlike traditional open-pit or underground mining, which requires massive earth-moving equipment, creates large tailings piles, and leaves a significant environmental footprint, ISR is widely considered a much cleaner, low-impact extraction method. The ISR process involves circulating oxygenated groundwater fortified with carbon dioxide through natural, porous sandstone uranium deposits. This solution dissolves the uranium from the host rock, and the uranium-bearing liquid is then pumped to the surface for processing into uranium concentrate, commonly known as yellowcake (U3O8). This technology is highly aligned with the ESG (Environmental, Social, and Governance) mandates of modern energy transition portfolios, as it preserves the local landscape, consumes minimal water, and generates virtually no carbon emissions during the extraction process.

The company's primary revenue stream is derived from the sale of uranium concentrates to nuclear utility companies. To mitigate commodity price volatility and secure predictable cash flows, enCore utilizes a dual-track marketing strategy. This involves securing long-term sales contracts with major nuclear utilities at fixed or inflation-adjusted prices, while maintaining exposure to the spot market to capitalize on upward price movements. By balancing long-term contract commitments with spot-market flexibility, enCore can fund its ongoing capital expenditures and development projects while delivering reliable returns to its shareholders.

The macroeconomic and regulatory landscape plays a pivotal role in shaping enCore’s financial outlook. Currently, global macroeconomic policies are shifting heavily in favor of domestic energy security and carbon reduction. The United States, which operates the largest fleet of nuclear reactors in the world, has historically relied on foreign imports for the vast majority of its uranium supply, including significant volumes from Russia and Central Asia. In response to geopolitical tensions and supply chain vulnerabilities, federal policies are increasingly prioritizing domestic sourcing. Legislative initiatives and funding programs aimed at boosting domestic uranium production, enrichment, and conversion are direct tailwinds for enCore.

Furthermore, the upcoming US Domestic Uranium Permitting Policy Update, scheduled for June 25, 2026, represents a critical regulatory catalyst. Any policy changes that streamline the permitting process for domestic ISR projects will significantly reduce development timelines and lower compliance costs for enCore. On the macroeconomic front, while persistent high interest rates generally increase the cost of capital for capital-intensive mining operations, enCore's transition from a pure exploration company to an active producer helps shield it from the worst effects of tight credit markets, as operating cash flows begin to offset development expenses.

Recent Performance and Corporate Developments 📈

enCore Energy has made substantial strides in transitioning from an exploration-stage company to an active, cash-generating producer. The company's financial results reflect this operational pivot, showing a dramatic improvement in top-line and bottom-line performance as production assets come online.

Q1 2026 Financial Highlights: 💰

• Revenue: $18,301,000 for the quarter ending March 31, 2026.
• Net Income: $5,404,000, representing a significant positive swing into profitability.
• Earnings Per Share (EPS): $0.03 per share.
• Revenue Growth YoY: 0.34%, reflecting the initial stages of commercial sales and contract deliveries.
• Operating and Gross Margins: Specific margin percentages and detailed segment growth figures are not fully detailed in the current research packet, but the positive net income underscores a highly efficient operational structure driven by low-cost ISR extraction.

Strategic Initiatives and Mergers: 🤝

On the corporate and operational front, enCore Energy has executed several critical milestones in recent months. A major leadership transition occurred on April 20, 2026, when enCore appointed Richard Little as its new Chief Executive Officer, while the company's founder, William M. Sheriff, returned to the role of Executive Chair. This leadership transition is designed to guide the company through its next phase of commercial scaling, leveraging Mr. Little's operational expertise to optimize production across enCore's expanding project pipeline.

Operationally, the company announced a major milestone on June 4, 2026, with the successful completion of construction at the Upper Spring Creek ISR Uranium Project. This project is a key asset in enCore's growth strategy, and the completion of construction paves the way for imminent production, which will further boost the company's output capacity.

Additionally, on June 1, 2026, enCore reported highly encouraging exploration results from its Alta Mesa East project, where the company successfully extended known uranium mineralization by 3,700 feet. This extension demonstrates the organic growth potential of enCore's existing asset base, suggesting that the company can continue to expand its resource inventory and extend the mine life of its active operations without requiring expensive external acquisitions. While there are no major corporate mergers to report in the immediate term, enCore's focus remains squarely on organic asset development, strategic joint ventures, and operational execution.

Profitability and Fair Value 🎯

enCore Energy's financial profile is undergoing a rapid transformation. Historically, as a development-stage mining company, enCore posted net losses as it poured capital into permitting, drilling, and facility construction. This is reflected in its trailing twelve-month (TTM) P/E ratio of -9.60. However, the company's Q1 2026 financial results, which yielded a net income of $5.40 million and an EPS of $0.03, signal that the company is successfully crossing the threshold into sustained profitability.

Evaluating enCore's valuation requires looking past historical TTM metrics and focusing on its forward-looking production profile. The company's TTM Price-to-Sales (P/S) ratio stands at approximately 6.19 (with some financial data providers reporting an FMP ratio of 6.11). While a P/S ratio above 6.0 is typically associated with high-growth technology firms rather than materials companies, this premium is common for clean energy transition stocks and critical mineral producers that are just beginning to commercialize massive asset bases. Investors are paying a premium for enCore's domestic, ESG-compliant uranium reserves in an undersupplied global market.

With a market capitalization of approximately $268 million and a share price trading around $1.38, enCore sits comfortably in the micro-cap space. Over the past year, the stock has experienced a price decline of -39.21%. This correction is largely reflective of broader capital flows out of early-stage green energy and mining stocks, as well as general price action volatility in the uranium sector. However, given the company's transition to positive quarterly net income, the successful completion of the Upper Spring Creek construction, and the expansion of mineralization at Alta Mesa East, the current share price of $1.38 appears to represent an attractive, de-risked entry point for long-term investors. Compared to its peers in the domestic uranium space, many of which are still years away from commercial production and licensing, enCore's active production status and low-cost ISR model support a fair value that could expand significantly as production guidance is met.

Analyst Estimates and Ratings 📊

Despite its micro-cap status, enCore Energy is capturing the attention of institutional analysts who specialize in the energy transition and critical minerals sectors. The stock's strong operational execution has made it a favorite among select buy-side and sell-side analysts.

• Consensus Rating: Buy
• 6-Month Consensus: 1 Buy, 0 Strong Buy, 0 Hold, 0 Sell
• Recent Upgrades (90 days): 0
• Latest Street Action: Buy
• Price Target: While a specific consensus price target is not detailed in the current research packet, the latest street action remains a definitive "Buy," reflecting analyst confidence in enCore's operational ramp-up and the macro tailwinds supporting domestic uranium.

This newsletter screens for stocks with strong recent buy-side action and high average trading volumes. With an average daily volume of 3,570,568 shares, enCore Energy offers excellent liquidity for a micro-cap stock, ensuring that investors can enter and exit positions without causing excessive price volatility.

Investor-Focused Takeaway: Is EU Right for Your Portfolio?

What to Watch in the Near Term: 📈

• US Domestic Uranium Permitting Policy Update (June 25, 2026): This regulatory update will be a major catalyst for the domestic uranium sector, potentially streamlining the approval process for enCore's future project phases.
• Q2 2026 Earnings & ISR Operational Ramp Update (Expected in ~65 days): Investors should closely monitor this release for updates on the commercial ramp-up at Alta Mesa and the initial production timelines for the newly completed Upper Spring Creek project.
• Production Guidance and Contract Execution: Watch for any announcements regarding new long-term supply agreements with domestic utilities, which would provide further revenue visibility and validate enCore's commercial pricing power.

Recommendation:

enCore Energy Corp. (NASDAQ: EU) presents a compelling, high-upside opportunity for growth-oriented investors looking to gain exposure to the clean energy transition and the nuclear renaissance. The company's low-cost, environmentally friendly ISR extraction technology, combined with its strategic domestic asset base, positions it perfectly to benefit from the US government's push for domestic energy security. The recent transition to quarterly profitability in Q1 2026, marked by $18.30 million in revenue and $5.40 million in net income, demonstrates that enCore's business model is operationally viable and starting to scale.

However, investors must remain mindful of the risks. As a micro-cap stock with a market capitalization of $268 million, enCore is subject to commodity price fluctuations and operational execution risks, as evidenced by its -39.21% price decline over the past year. The stock is best suited for patient, long-term investors who can tolerate short-term volatility in exchange for exposure to a critical secular trend. A balanced approach involves establishing a starter position at the current price of ~$1.38 and opportunistically adding shares as the company hits its upcoming production milestones and continues to prove its operational consistency.

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Denison Mines Corp. (AMEX: DNN) is a premier Canadian uranium exploration and development company focused on the highly prospective Athabasca Basin region of northern Saskatchewan. Positioned at the intersection of the global energy transition and clean energy security, Denison is pioneering the development of the high-grade Phoenix deposit, which is slated to become the first-ever In-Situ Recovery (ISR) uranium mine in Canada. With a strategic focus on low-cost, environmentally sustainable extraction methods, the company serves as a critical asset-backed play for institutional and retail investors seeking direct exposure to the structural supply deficit in the global uranium market.

Business Model and Revenue Streams 📦

Denison Mines operates primarily as a development-stage mining enterprise, which means its business model is fundamentally different from that of an active producer. Rather than generating steady, high-volume recurring revenues from active mining operations today, Denison is investing capital to bring its world-class uranium assets online. The company's flagship asset is the Wheeler River project, which hosts the Phoenix and Gryphon deposits. The primary revenue stream for the company in its current phase is highly limited, consisting of nominal sales from uranium inventories, legacy contracts, or strategic investments, while the long-term revenue model is designed around the future extraction and sale of uranium concentrates (U3O8) to global nuclear utilities.

To understand Denison's business model, one must understand the technology they are deploying: In-Situ Recovery (ISR) mining. Traditionally, uranium in Canada has been mined using deep underground shafts or massive open-pit operations, both of which require immense capital expenditure, extensive surface disruption, and complex tailings management. ISR mining, by contrast, involves pumping a mining solution (lixiviant) through injection wells into the orebody to dissolve the uranium, and then bringing the uranium-bearing solution back to the surface through recovery wells. This process leaves the surrounding rock intact, eliminates the need for waste rock piles or tailings facilities, and dramatically lowers both capital and operating costs. Because the Phoenix deposit is exceptionally high-grade, the successful application of ISR technology could make Denison one of the lowest-cost uranium producers in the world.

The macroeconomic environment is currently acting as a powerful tailwind for Denison's business model. Global climate policies and the accelerating transition toward carbon-free baseload electricity have placed nuclear energy back at the center of international energy strategies. Furthermore, geopolitical tensions and trade policies have forced Western utilities to aggressively re-evaluate their supply chains. Historically, a significant portion of the world's enriched uranium and fuel supply came from state-owned enterprises in Russia and Central Asia. As Western nations implement import bans and restrictions on Russian nuclear fuel, utilities are scrambling to lock in long-term supply agreements with secure, politically stable jurisdictions like Canada. This structural shift has driven long-term uranium prices to multi-year highs, prompting utilities to seek out developers like Denison who can bring new supply online before the end of the decade.

However, macro policies present a double-edged sword. While demand-side policies are highly favorable, supply-side realities are governed by stringent environmental and regulatory frameworks. Developing a new mining project in Canada requires navigating complex provincial and federal environmental assessments, licensing procedures, and consultations with Indigenous communities. Additionally, macroeconomic inflation and elevated interest rates present challenges for capital-intensive development projects. To mitigate these risks, Denison has adopted a creative financing strategy, including a uranium-backed funding plan where the company leverages its physical uranium holdings to secure non-dilutive financing, ensuring that site preparation and early construction works can proceed even in a volatile capital market environment.

Recent Performance and Corporate Developments 📈

Q1 2026 Financial Highlights: 💰

- Revenue: Total revenue for the quarter ending March 31, 2026, was $1,106,000, representing a year-over-year decline of 19.56% compared to the prior year's period, reflecting the company's pre-production status and limited active commercial sales.

- Net Loss: The company reported a consolidated GAAP net loss of -$114,879,000 for the quarter, with a basic and diluted loss per share of -$0.13, largely driven by non-cash adjustments, ongoing exploration expenses, and development expenditures at the Wheeler River project.

- Adjusted Earnings Performance: On an adjusted basis, Denison reported a quarterly loss of $0.01 per share, which outperformed the Zacks Consensus Estimate of a loss of $0.02 per share, and marked an improvement over the loss of $0.03 per share reported in the same quarter of the previous year.

- Operating Margins and Valuation Ratios: Due to the pre-revenue nature of the development pipeline, operating margins remain deeply negative, with a trailing twelve-month (TTM) EV/EBITDA of -29.52.

Strategic Initiatives and Mergers: 🤝

While Denison has not engaged in any large-scale corporate mergers in the traditional sense, the company has been highly active in forging strategic partnerships, joint ventures, and equity investments to expand its regional footprint and strengthen its balance sheet. A key highlight of Denison's recent corporate activity is its close collaboration with Cosa Resources Corp. In May 2026, Cosa announced a joint venture exploration program at Murphy Lake North, in which Denison is an active participant. Initial drilling at Murphy Lake North yielded highly encouraging results, intersecting up to 1.7% U3O8 within an interval of 5.0 meters of 0.55% U3O8, confirming the presence of high-grade uranium mineralization.

Following these positive exploration results, Cosa Resources announced an initial C$5 million bought deal private placement in early June 2026, which was quickly upsized to C$12 million on June 4, 2026, due to strong institutional demand. Denison Mines actively participated in this upsized private placement, cementing its strategic stake in Cosa and ensuring continued exposure to regional exploration upside.

Additionally, in mid-May 2026, Foremost Clean Energy Ltd. announced that it would issue shares to Denison Mines under an existing Investor Rights Agreement. This transaction serves to strengthen Foremost's treasury while deepening the strategic relationship between the two clean energy transition players.

On the operational front, Denison achieved a major milestone in May 2026 by commencing site preparation and early construction works at the Phoenix ISR Uranium Mine. This operational kick-off was supported by key regulatory approvals and the advancement of a uranium-backed funding plan, which allows Denison to utilize its physical uranium inventory as financial collateral to fund capital expenditures without relying heavily on dilutive equity raises.

Profitability and Fair Value 🎯

Evaluating a development-stage mining company like Denison Mines using traditional value-investing metrics requires careful context. Because the company is actively investing millions of dollars into engineering, licensing, and site preparation while generating minimal current revenue, its trailing valuation multiples appear highly elevated. The company's trailing twelve-month P/E ratio stands at -13.24 (with some data feeds reporting -13.42), which is expected for an enterprise that has not yet reached commercial production. Similarly, the trailing P/S ratio is exceptionally high at 822.68 (or 834.35 depending on the specific exchange cache), reflecting the nominal nature of current revenues relative to the company's market capitalization.

Despite these negative trailing metrics, the company's forward-looking valuation paints a different picture. The PEG ratio is remarkably low at 0.11, indicating that when factoring in the projected long-term growth of the company's earnings once the Phoenix mine comes online, the current stock price may actually represent an attractive entry point. Over the past year, Denison's stock has experienced strong positive price action, posting a 1-year price change of 76.16% to reach its current level of approximately $3.03. This performance indicates that the market is increasingly pricing in the successful execution of the Phoenix ISR project and the rising long-term price of uranium.

When compared to established, large-scale producers like Cameco Corp. (NYSE: CCJ), Denison trades at a premium valuation relative to its current cash flows, but offers far higher growth leverage. While Cameco provides investors with operational stability, scale, and immediate cash flow, Denison offers high-risk, high-reward exposure to the first ISR mine in Canada. Given the high-grade nature of the Phoenix deposit and the low projected operating costs associated with ISR extraction, the current price of $3.03 appears fair for investors who are willing to accept development-stage execution risk in exchange for explosive future cash flow potential.

Analyst Estimates and Ratings 📊

Consensus Rating: Buy

Price Target: While a specific average numerical price target is not explicitly detailed in the current consensus tracker, the overall analyst sentiment is highly favorable. The 6-month consensus rating stands at 1 Buy, 0 Strong Buy, 0 Hold, and 0 Sell, with the latest street action confirming a Buy rating.

This newsletter actively screens for stocks experiencing strong buy-side momentum and high trading liquidity. Denison fits this profile perfectly, boasting an exceptionally high average trading volume of 33,782,785 shares, which ensures deep liquidity for institutional and retail investors alike. While there have been 0 formal analyst upgrades in the last 90 days, the recent commencement of site preparation at Phoenix and the successful drilling results at the Murphy Lake North joint venture have reinforced the prevailing Buy consensus.

Investor-Focused Takeaway: Is DNN Right for Your Portfolio?

What to Watch in the Near Term: 📈

- Phoenix ISR Field Test Data Release (Expected July 20, 2026): This is the single most critical near-term catalyst for the stock. The field test data will provide empirical proof of the feasibility, flow rates, and recovery efficiencies of In-Situ Recovery technology in the Athabasca Basin, directly validating or challenging Denison's low-cost production thesis.

- Q2 2026 Earnings & CapEx Guidance (Expected August 7, 2026): This release will provide updated capital expenditure projections and timeline estimates for the construction of the Phoenix mine, giving investors a clearer picture of the company's funding requirements over the next 12 to 18 months.

- Progress on the Uranium-Backed Funding Plan: Investors should monitor the terms and execution of Denison's financing initiatives, specifically how effectively the company leverages its physical uranium holdings to fund construction without diluting existing shareholders.

- Exploration Updates from Murphy Lake North: Continued assay results from the joint venture with Cosa Resources could expand Denison's regional resource base and provide additional speculative tailwinds.

Recommendation:

Denison Mines Corp. represents a highly compelling, asset-backed vehicle for investors who want to capitalize on the structural supply deficit in the global uranium market and the broader energy transition. The company's pioneering use of In-Situ Recovery mining in Canada holds the potential to unlock industry-leading profit margins once commercial production begins. However, because the company is still in the pre-production phase and currently generates nominal revenues, the stock is subject to heightened volatility and execution risks. For conservative, income-focused portfolios, Denison may carry too much near-term development risk. But for growth-oriented investors with a medium-to-long-term horizon, Denison Mines offers an exceptional risk-reward profile, backed by tangible physical assets, a strong balance sheet, and a clear path toward becoming a low-cost leader in the clean energy fuel supply chain.

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Final Take: The Domestic Producer and the High-Grade Pioneer Fueling the Clean Energy Transition

The global shift toward a low-carbon economy cannot rely on intermittent renewables alone—it requires reliable, emission-free nuclear baseload power. That transition starts at the very beginning of the fuel cycle, where enCore Energy (EU) and Denison Mines (DNN) are securing the critical uranium assets needed to power a carbon-free future.

⚡ enCore Energy Corp. (EU) — America’s Clean Energy Producer

✔ Leading domestic U.S. uranium producer utilizing environmentally friendly In-Situ Recovery (ISR) technology

✔ Diversified, production-ready asset portfolio strategically located across Texas, Wyoming, and South Dakota

✔ Well-positioned to capitalize on the urgent political and commercial push for domestic energy independence

➤ Best for: Investors seeking near-term, production-stage exposure to U.S. domestic uranium supply with active operations and revenue generation.

🧪 Denison Mines Corp. (DNN) — The High-Grade Canadian Pioneer

✔ Developing the world-class Phoenix deposit in Saskatchewan’s prolific Athabasca Basin

✔ Pioneering the first-ever In-Situ Recovery (ISR) uranium mining operation in Canada for ultra-low-cost, sustainable extraction

✔ Exceptional asset-backed optionality with massive structural leverage to the long-term global supply deficit

➤ Best for: Long-term investors looking for asymmetric upside in a premier, development-stage asset with industry-leading grade profiles.

Investor Insight

🧩 Want near-term U.S. production and active operational cash flow? → EU

⚙️ Want world-class, low-cost asset development with explosive structural leverage? → DNN

Bottom Line:

The clean energy transition is fundamentally a nuclear transition. Without a secure, reliable supply of uranium, global decarbonization and carbon-reduction goals cannot be met. enCore Energy provides the immediate domestic production required to secure Western energy grids today, while Denison Mines holds the keys to the next generation of low-cost, high-grade supply in a premier mining jurisdiction. As capital continues to flow into carbon-free baseload power, EU and DNN represent two distinct, highly strategic pathways to play the structural uranium deficit.

Not investment advice. Do your own research.