News Release - Q2 results up
FOR FURTHER INFORMATION PLEASE CONTACT:
Denison Mines Limited
E. Peter Farmer
President and Chief Executive Officer
(416) 979-1991 Extension 231
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: DENISON MINES LIMITED
TSE, ME SYMBOL: DEN
JULY 29, 1997
Denison Reports Second Quarter Earnings of $12.8 Million
TORONTO, ONTARIO--Denison Mines Limited reported earnings of $12.8 million ($0.04 per share) for the three months ended June 30, 1997, compared with earnings of $9.0 million ($0.03 per share) in the second quarter of 1996. Earnings for the second quarter of 1997 included $8.5 million (1996-$5.4 million) from the purchase of long-term debt.
For the six months ended June 30, 1997, earnings were $20.4 million ($0.06 per share) compared to earnings of $12.2 million ($0.04 per share) in the corresponding period of 1996. Details of the results are attached.
Peter Farmer, Denison's President and Chief Executive Officer, said: "as a result of the repurchase of long-term debt during the second quarter, the Company now has free access to its ongoing non-uranium cash flow. The Company's only remaining debt consists of the McClean Lake uranium non recourse project loan for $40.0 million".
Denison's rebuilding efforts continued in the quarter with the acquisition of an additional 1.27 percent interest in the White
Rose oil field offshore Newfoundland and the identification of a
new oil exploration prospect in the Aegean Sea, 5 kilometers east
of the existing Prinos platform.
/T/
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Consolidated Statement of Earnings (Unaudited)
(In thousands except per share data)
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Six Months Ended
Second Quarter June 30
1997 1996 1997 1996
--------- --------- --------- ---------
Revenue $ 16,445 $ 18,471 $ 36,882 $ 37,420
--------- --------- --------- ---------
Operating and
exploration costs 11,389 13,787 22,669 28,655
General corporate
expenses 870 899 1,906 1,799
Amortization of
debt discount - 440 345 940
Gain on purchase
of long-term debt (8,495) (5,400) (8,495) (5,400)
Other income (609) (934) (1,108) (2,095)
--------- --------- --------- ---------
3,155 8,792 15,317 23,899
--------- --------- --------- ---------
Earnings before income
and mining taxes 13,290 9,679 21,565 13,521
Income and mining taxes 462 672 1,155 1,328
--------- --------- --------- ---------
Net earnings
for the period $ 12,828 $ 9,007 $ 20,410 $ 12,193
--------- --------- --------- ---------
--------- --------- --------- ---------
Net earnings
per common share $ 0.04 $ 0.03 $ 0.06 $ 0.04
--------- --------- --------- ---------
--------- --------- --------- ---------
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Consolidated Balance Sheet (Unaudited)
(In thousands)
--------------------------------------------------------------
June 30 December 31
1997 1996
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ASSETS
Cash and short-term deposits $ 44,534 $ 50,452
Restricted cash 6,147 8,647
Accounts receivable 25,140 20,842
Product inventory 4,677 2,865
Raw materials, supplies
and prepaid expenses 2,140 2,098
Net fixed assets 98,791 79,468
----------- -----------
$ 181,429 $ 164,372
----------- -----------
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LIABILITIES
Accounts payable and
accrued liabilities $ 24,117 $ 22,299
Income taxes due within one year 886 2,956
Income and mining taxes
due after one year 4,979 4,865
Long-term debt 39,987 42,197
Other long-term debt
repaid July 18,1997 4,770 -
Provision for post-employment
benefits 13,000 13,000
Provision for Elliot Lake
decommissioning and
reclamation costs 10,026 15,610
Provision for Greek
decommissioning costs 32,905 33,151
Deferred income and mining taxes 117 62
----------- -----------
130,787 134,140
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SHAREHOLDERS' EQUITY 50,642 30,232
----------- -----------
$ 181,429 $ 164,372
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