Denison Reports 1999 Earnings Of $0.04 Per Share
FEBRUARY 22, 2000
TORONTO, ONTARIO--Denison Mines Limited today reported earnings of
$12.3 million for the twelve months ended December 31, 1999
compared with a loss of $3.3 million for the year ended December
31, 1998. Revenue was $20.5 million for the year compared to
$52.4 million in 1998. The oil and gas portion of revenue has
declined to $3.2 million in 1999 from $22.4 million in 1998
following the closure of the Greek oil field in November 1998.
With the McClean Lake mine reaching commercial production on
November 1, 1999, the earnings from McClean Lake for November and
December have for the first time been included in income.
Shareholders' equity increased to $65.8 million from $53.4 million
in 1998.
Results in 1999 include earnings of $13.9 million as a result of
the elimination of any Greek reclamation liability, a gain of $7.7
million from the sale of the Company's interests in the White Rose
oil field and a loss of $12.9 million on account of the loss in
the Court of Appeal of the Oceanic royalty dispute. Excluding
these items, earnings would be $3.5 million. Results in 1998
included a $11.5 million write down of the Greek oil property.
In the fourth quarter of 1999, the Company reported a loss of $1.9
million primarily because of the $12.9 million loss of the Oceanic
royalty decision, which was partially offset by the additional
reduction in the Greek decommissioning provision of $7.9 million.
Earnings, excluding these items, would be $3.1 million in the
fourth quarter. Payment to Oceanic was made in January.
In the fourth quarter of 1999, the Company received its first U.S.
$0.7 million from its Ecuador royalty and at present prices and
planned volumes expects to receive the balance of this U.S. $7.8
million royalty in 2000.
Production at the McClean mine averaged 81% of design capacity in
November and December 1999. Since the year end, the mine has been
operating at above nominal capacity. Although not necessarily
representative of future results, especially in the short term,
McClean revenue in the fourth quarter was $11.4 million with
earnings of almost $1 million.
Denison Environmental Services had an excellent year with an
operating profit of $2.2 million. The asset sales group alone,
sold in excess of $2.3 million in used mining equipment and
salvaged materials for the account of Denison and its customers.
/T/
Consolidated Balance Sheets
Denison Mines Limited as at December 31
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(unaudited and in thousands) 1999 1998
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ASSETS
Cash and short-term deposits $ 23,134 $ 23,815
Restricted cash -- 3,045
Marketable securities 4,936 --
Accounts receivable 24,586 38,375
Product inventory 261 4,964
Raw materials, supplies and prepaid
expenses 1,984 1,652
Net property, plant and equipment 145,289 135,961
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$ 200,190 $ 207,812
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LIABILITIES
Accounts payable and accrued liabilities $ 39,703 $ 46,343
Current taxes payable 768 120
Income and resource taxes due after
July 1, 2000 3,941 4,758
Long-term debt 68,117 56,354
Provision for post-employment benefits 11,900 12,475
Provision for Elliot Lake mine
decommissioning and reclamation costs 7,544 9,137
Provision for Greek oil field
decommissioning costs -- 24,624
Deferred income and resource taxes 2,458 563
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134,431 154,374
SHAREHOLDERS' EQUITY 65,759 53,438
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$ 200,190 $ 207,812
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Consolidated Statements of Earnings (Loss)
Denison Mines Limited
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Twelve Months Ended
Fourth Quarter December 31
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(unaudited and in thousands except
per share data) 1999 1998 1999 1998
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Revenue $ 15,852 $ 12,101 $ 20,535 $ 52,428
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Operating and exploration costs 9,995 9,427 12,633 43,430
Decrease in provision for Greek
oil field decommissioning (7,872) -- (13,939) --
Settlement of Oceanic royalty
dispute 12,853 -- 12,853 --
Write down of Greek oil property -- -- -- 11,500
Gain on sale of White Rose oil field -- -- (7,735) --
Interest expense 842 -- 842 --
General corporate expenses 975 878 3,010 3,475
Investment (income) loss 47 (449) (667) (2,723)
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16,840 9,856 6,997 55,682
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Earnings (loss) before income and
resource taxes (988) 2,245 13,538 (3,254)
Income and resource taxes 871 (675) 1,245 68
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Net earnings (loss) for the
period $ (1,859) $ 2,920 $ 12,293 $ (3,322)
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Net earnings (loss) per Common
Share $ 0.00 $ 0.01 $ 0.04 $ (0.01)
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Consolidated Statements of Cash Flow
Denison Mines Limited
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Twelve Months Ended
Fourth Quarter December 31
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(unaudited and in thousands) 1999 1998 1999 1998
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Operating Activities
Net earnings (loss) for the
period $ (1,859) $ 2,920 $ 12,293 $ (3,322)
Adjustment for:
Depreciation, depletion and
amortization 1,403 17 1,434 17
Decrease in provision for Greek
oil field decommissioning (7,872) -- (13,939) --
Write down of Greek oil property -- -- -- 11,500
Gain on sale of White Rose oil field -- -- (7,735) --
Loss (gain) on sale of other assets 178 (26) -- (46)
Increase (decrease) in taxes payable
after July 1, 2000 and deferred
income and resource taxes (963) 97 81 209
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(9,113) 3,008 (7,866) 8,358
Decrease (increase) in operating
working capital 15,805 (1,263) 10,591 2,949
Spending on Greek oil field
decommissioning costs 272 (8,376) (8,685) (8,376)
Funding of Elliot Lake mine
decommissioning and reclamation
costs (575) (567) (1,593) (567)
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Net cash generated by (used in)
operating activities 6,389 (7,198) (7,553) 2,364
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Financing Activities
Borrowing on loan facility 5,471 1,852 18,468 10,381
Repayment of loan facility from
net uranium sales (6,705) -- (6,705) --
Extension of Common Share
Purchase Warrants 28 -- 28 --
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(1,206) 1,852 11,791 10,381
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Investing Activities
Proceeds on sale of assets (178) 26 13,137 46
Additions to property, plant
and equipment (3,446) (9,885) (16,165) (34,722)
Sale (purchase) of marketable
securities (322) 6,266 (4,936) 8,633
Decrease in restricted cash -- 239 3,045 786
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(3,946) (3,354) (4,919) (25,257)
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Decrease in Cash and Cash
Equivalents 1,237 (8,700) (681) (12,512)
Cash and Cash Equivalents
- Beginning of Period 21,897 32,515 23,815 36,327
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Cash and Cash Equivalents
- End of Period (a) $ 23,134 $ 23,815 $ 23,134 $ 23,815
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(a) Cash and cash equivalents comprise cash and short-term deposits. |
