marcos,
Denison's first quarter results. WOW!
DENISON'S FIRST QUARTER EARNINGS UP SUBSTANTIALLY
TORONTO, April 29 /CNW/ - Denison Mines Limited reported earnings of
$7,582,000 on revenues of $20,437,000 for the three months ended March 31,
1997, compared with earnings of $3,186,000 on revenue of $18,949,000 in the
corresponding period of 1996.
Earnings per share were $0.02 in the first quarter of 1997 compared with
$0.01 in the first quarter of 1996.
The Company's oil operations contributed 73% of revenue and 76% of
earnings in the first quarter of 1997. The Company's share of oil production
was 26% or 128,000 barrels higher in 1997 than in the first quarter of 1996,
as a result of slightly higher production in the Prinos field and new
production from the Prinos North field.
The Company's mining division contributed $5.5 million to revenue in the
first quarter of 1997, compared with revenue of $6.3 million in the first
quarter of 1996. The mining division contributed $2.6 million to year-to-date
earnings in 1997 compared with $3.0 million in the first quarter of 1996.
Production from the new Prinos North oil field averaged 2,625 barrels per
day in the first quarter. E. Peter Farmer, Denison's President and Chief
Executive Officer, said that ``with regular servicing we expect that
production levels from this well will be consistently higher. Current daily
production is 3,700 barrels. We are also reinterpreting existing 3D seismic
data to identify targets for further drilling within the next 12 months.
With the agreement with the governments of Canada and Ontario permitting
us to suspend certain requirements of the Reclamation Funding agreement, we
now have the ability to use our cash resources to pursue growth. Increasing
recoverable oil reserves in Greece will form part of this strategy.''
Consolidated Statement of Earnings (Unaudited)
(In thousands except per share data)
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Three Months Ended
March 31
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1997 1996
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Revenue $ 20,437 $ 18,949
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Operating and exploration costs 11,280 14,868
General corporate expenses 1,036 900
Amortization of debt discount 345 500
Other income (499) (1,161)
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12,162 15,107
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Earnings before income and mining taxes 8,275 3,842
Income and mining taxes 693 656
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Net earnings for the period $ 7,582 $ 3,186
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Net earnings per common share $ 0.02 $ 0.01
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Consolidated Balance Sheet (Unaudited)
(In thousands)
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March 31 December 31
1997 1996
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ASSETS
Cash and short-term deposits $ 56,307 $ 50,452
Restricted cash 5,475 8,647
Accounts receivable 25,425 20,842
Product inventory 4,511 2,865
Raw materials, supplies and prepaid expenses 1,976 2,098
Net fixed assets 89,295 79,468
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$ 182,989 $ 164,372
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LIABILITIES
Accounts payable and accrued liabilities $ 20,307 $ 22,299
Income taxes due within one year 3,112 2,956
Income and mining taxes due after one year 4,913 4,865
Long-term debt 55,171 42,197
Provision for post-employment benefits 13,000 13,000
Provision for Elliot Lake decommissioning
and reclamation costs 15,682 15,610
Provision for Greek decommissioning costs 32,873 33,151
Deferred income and mining taxes 117 62
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145,175 134,140
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CAPITAL STOCK AND DEFICIT 37,814 30,232
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$ 182,989 $ 164,372
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For further information: E. Peter Farmer, President and Chief Executive Officer, (416) 979-1991 Extension 231 |
