SEGMENTED INFORMATION

12 Months Ended

Dec. 31, 2020

Disclosure of operating segments [abstract]

SEGMENTED INFORMATION

Business Segments

The Company operates in three primary segments – the Mining segment, the Closed Mine Services segment and the Corporate and Other segment. The Mining segment includes activities related to exploration, evaluation and development, mining, milling (including toll milling) and the sale of mineral concentrates. The Closed Mine Services segment includes the results of the Company’s environmental services business which provides mine decommissioning and other services to third parties. The Corporate and Other segment includes management fee income earned from UPC and general corporate expenses not allocated to the other segments. Management fee income has been included in the same segment as general corporate expenses due to the shared infrastructure between the two activities.

For the year ended December 31, 2020, reportable segment results were as follows:

(in thousands)	Mining			Closed  Mines  Services			Corporate and Other			Total
Statement of Operations:
Revenues		3,614			8,205			2,604			14,423
Expenses:
Operating expenses		(3,742	)		(6,849	)		(3	)		(10,594	)
Exploration and evaluation		(9,032	)		—			—			(9,032	)
General and administrative		(19	)		—			(7,590	)		(7,609	)
		(12,793	)		(6,849	)		(7,593	)		(27,235	)
Segment income (loss)		(9,179	)		1,356			(4,989	)		(12,812	)
Revenues – supplemental:
Uranium concentrate sales		852			—			—			852
Environmental services		—			8,205			—			8,205
Management fees		—			—			2,604			2,604
Toll milling services–deferred revenue (note 11)		2,762			—			—			2,762
		3,614			8,205			2,604			14,423
Capital additions:
Property, plant and equipment (note 10)		289			15			—			304
Long-lived assets:
Plant and equipment
Cost		101,540			4.546			892			106,978
Accumulated depreciation		(26,241	)		(3,194	)		(416	)		(29,851	)
Mineral properties		179,743			—			—			179,743
		255,042			1,352			476			256,870

For the year ended December 31, 2019, reportable segment results were as follows:

(in thousands)	Mining			Closed  Mines  Services			Corporate and Other			Total
Statement of Operations:
Revenues		4,609			8,974			1,966			15,549
Expenses:
Operating expenses		(6,090	)		(8,346	)		—			(14,436	)
Exploration and evaluation		(15,238	)		—			—			(15,238	)
General and administrative		(17	)		—			(7,794	)		(7,811	)
		(21,345	)		(8,346	)		(7,794	)		(37,485	)
Segment income (loss)		(16,736	)		628			(5,828	)		(21,936	)
Revenues – supplemental:
Environmental services		—			8,974			—			8,974
Management fees		—			—			1,966			1,966
Toll milling services–deferred revenue (note 11)		4,609			—			—			4,609
		4,609			8,974			1,966			15,549
Capital additions:
Property, plant and equipment (note 10)		637			273			38			948
Long-lived assets:
Plant and equipment
Cost		99,994			4,591			908			105,493
Accumulated depreciation		(24,349	)		(3,062	)		(304	)		(27,715	)
Mineral properties		179,481			—			—			179,481
		255,126			1,529			604			257,259

Revenue Concentration

The Company’s business is such that, at any given time, it sells its environmental and other services to a relatively small number of customers. During 2020, one customer from the corporate and other segment, three customers from the Closed Mines Group segment and one customer from the mining segment accounted for approximately 94% of total revenues consisting of 18%, 57% and 19% respectively. During 2019, one customer from the Corporate and Other segment, three customers from the Closed Mine Services segment and one customer from the Mining segment accounted for approximately 99% of total revenues consisting of 13%, 56% and 30% respectively.

Revenue Commitments

Denison’s revenue portfolio consists of short and long-term sales commitments. The following table summarizes the expected future revenue, by segment, based on the customer contract commitments and information that exists as at December 31, 2020:

(in thousands)	2021		2022		2023		2024		There- after		Total
Revenues – by Segment:
Closed Mines Group
Environmental services		4,751		—		—		—		—		4,751
Corporate and Other
Management fees		2,186		2,186		2,186		547		—		7,105
Total Revenue Commitments		6,937		2,186		2,186		547		—		11,856

The amounts in the table above represent the estimated consideration that Denison will be entitled to receive when it satisfies the remaining performance obligations in its customer contracts. Various assumptions, consistent with past experience, have been made where the quantity of the performance obligation may vary.

In addition to the amounts disclosed above, the Company is also contracted to pay onward to APG all toll milling cash proceeds received from the MLJV related to the processing of specified Cigar Lake ore through the McClean Lake mill (see note 11). The timing and amount of such future toll milling cash proceeds are outside the control of the Company.