Denison Reports 1997 Earnings Of $25.7 Million
TORONTO, ONTARIO--Denison Mines Limited today reported earnings of
$25.7 million for the year ended December 31, 1997 compared with
earnings of $50.1 million for the year ended December 31, 1996.
Earnings in 1997 included an $8.5 million gain on the repurchase
of long-term debt and earnings in 1996 included $19.8 million of
non-recurring income. Earnings for the 3 months ended Dec 31, 1997
were $1.1 million compared with $26.1 million in 1996. The 1996
fourth quarter earnings included a non-recurring item of $14.4
million.
Revenue in 1997 was $73.1 million compared with $88.9 million in
the previous year. Earnings per share were $0.08 for 1997 compared
with $0.16 for 1996.
The Company's oil and gas operations contributed $49.3 million to
1997 revenues (1996 - $65.6 million) and $12.4 million to 1997
earnings (1996 - $20.5 million). The decrease in revenue and
earnings was the result of lower oil prices and production at the
Prinos field in Greece.
A 3-D seismic program on a 155 square kilometre area west and
south of the existing oil fields in Greece has been completed and
ongoing interpretation is expected to be finalized in March. The
preliminary review indicates that at least two excellent new oil
prospects will be defined. One of the prospects, in which Denison
has a 45 percent interest, is located within 5 kilometres of the
existing production platform and appears large enough to contain
recoverable reserves of up to 50 million barrels. All consortium
members including the Greek State are meeting during March to
determine the exploration program.
Construction of the tailings management facilities in the JEB pit
at the McClean Lake Uranium project will require 12 weeks in a
frost free environment after regulatory approval to complete
construction is received. Production could still commence early in
the fourth quarter of this year.
/T/
Consolidated Balance Sheets
Denison Mines Limited as at December 31
(Unaudited and in thousands) 1997 1996
------------- ---------------
ASSETS
Cash and Short-term Deposits $ 36,327 $ 50,452
Restricted Cash 3,831 8,647
Marketable Securities
(quoted market $8,882) 8,633 -
Accounts Receivable 31,304 20,842
Product Inventory 11,463 2,865
Raw Materials, Supplies
and Prepaid Expenses 1,588 2,098
Net Fixed Assets 112,755 79,468
------------- ---------------
$ 205,901 $ 164,372
------------- ---------------
LIABILITIES
Accounts Payable and
Accrued Liabilities $ 40,440 $ 22,299
Income Taxes Due
Within One Year 1,912 2,956
Income and Mining Taxes
Due After One Year 4,689 4,865
Long-term Debt 45,973 42,197
Provision for Post-Employment
Benefits 13,000 13,000
Provision for Elliot Lake
Mine Reclamation Costs 9,704 15,610
Provision for Greek Oil Field
Decommissioning Costs 33,000 33,151
------------- ---------------
Deferred Income and
Mining Taxes 423 62
149,141 $ 134,140
------------- ---------------
SHAREHOLDERS' EQUITY 56,760 30,232
------------- ---------------
$ 205,901 $ 164,372
------------- ---------------
------------- ---------------
Consolidated Statements of Earnings
Denison Mines Limited for the Periods Ended December 31
(Unaudited and
in thousands
except per Twelve Months Ended
share data) Fourth Quarter December 31
1997 1996 1997 1996
---------------------- --------------------
Revenue $ 16,586 $ 26,192 $ 73,116 $ 88,935
---------------------- --------------------
Operating and
Exploration
Costs 15,353 16,381 52,422 56,929
Decrease in Provision
for Elliot Lake Mine
Decommissioning and
Reclamation Costs - (14,358) - (14,358)
General Corporate
Expenses 443 679 3,199 3,096
Amortization of
Debt Discount - 345 345 1,630
Gain on Purchase
of Long-term Debt - - (8,495) (5,400)
Investment Income (600) (628) (2,104) (3,410)
---------------------- --------------------
15,196 2,419 45,367 38,487
---------------------- --------------------
Earnings Before Income
and Mining Taxes 1,390 23,773 27,749 50,448
Income and Mining
Taxes 338 (2,297) 2,014 325
---------------------- --------------------
Net Earnings
for the period $ 1,052 $ 26,070 $ 25,735 $ 50,123
---------------------- --------------------
---------------------- --------------------
Net Earnings
Per Common Share $ 0.00 $ 0.08 $ 0.08 $ 0.16
---------------------- --------------------
---------------------- --------------------
Consolidated Statements of Cash Flow
Denison Mines Limited for the Periods ended December 31
(Unaudited and in thousands)
----------------------------------------------------------------
Twelve Months Ended
Fourth Quarter December 31
----------------------------------------------------------------
1997 1996 1997 1996
------------------- -------------------
Operating Activities
Net earnings
for the period $ 1,052 $ 26,070 $ 25,735 $ 50,123
Items not requiring
an outlay of cash
Depreciation, depletion
and amortization 760 1,197 3,339 8,812
Amortization of
debt discount - 345 345 1,630
Decrease in provision
for Elliot Lake mine
reclamation cost - (14,358) - (14,358)
Increase (decrease)
in provision for
Greek oil field
decommissioning costs (8) 380 (151) 330
Gain on purchase of
long-term debt - - (8,495) (5,400)
Gain on sale of assets 81 2 (741) (703)
Increase (decrease) in
taxes payable after
one year and
deferred income
and mining taxes (84) (2,855) 185 (1,884)
------------------- -------------------
1,801 10,781 20,217 38,550
Decrease (increase)
in operating
working capital 4,752 7,525 (1,759) 2,104
Funding of Elliot Lake
mine reclamation costs - (5,597) (5,600) (5,686)
------------------- -------------------
Net cash generated by
operating activities 6,553 12,709 12,858 34,968
------------------- -------------------
Financing Activities
Borrowings (repayments)
on loan facility 2,319 (528) 25,846 20,127
Issue of Common Share
Purchase Warrants
net of costs - - 793 -
Purchase of
long-term debt - - (13,920) (3,850)
------------------- -------------------
2,319 (528) 12,719 16,277
------------------- -------------------
Investing Activities
Proceeds on sale
of assets (75) (2) 829 5,358
Additions to
fixed assets (8,674) (13,227) (36,714) (49,656)
Sale (purchase) of
Marketable Securities 963 - (8,633) -
Decrease (increase)
in restricted cash (498) (2,007) 4,816 (2,533)
------------------- -------------------
(8,284) (15,236) (39,702) (46,831)
------------------- -------------------
Increase (decrease)
in Cash and
Short-term Deposits 588 (3,055) (14,125) 4,414
Cash and Short-term
Deposits - Beginning
of Period 35,739 53,507 50,452 46,038
------------------- -------------------
Cash and Short-term
Deposits -
End of Period $ 36,327 $ 50,452 $ 36,327 $ 50,452
------------------- -------------------
------------------- -------------------
/T/
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Denison Mines Limited
E. Peter Farmer
President and Chief Executive Officer
(416) 979-1991 ext 231 |
