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Denison Q3/97 results
Third quarter earnings $4.3m
Denison Mines Ltd DEN
Shares issued 317,871,201 Oct 28 close $0.385
Wed 29 Oct 97 News Release
Mr E. Peter Farmer reports
Denison Mines had earnings of $4.3 million ($0.02 per share) for the three
months ended September 30 1997 compared with earnings of $11.9 million
($0.04 per share) for the third quarter of 1996. For the nine months ended
September 30 1997, earnings were $24.7 million ($0.08 per share) compared
to earnings of $24.1 million ($0.08 per share) in the corresponding period
of 1996. Year to date earnings include gains of $8.5 million (1996 - $5.4
million) from purchase of long term debt.
The drop in earnings is a result of lower production and prices from the
company's Greek oil field and increased exploration and uranium costs.
Efforts to restore production rates are continuing and a new 3D seismic
program has commenced.
The new 3D seismic program covers a 155 sq km area to the west and south of
the Greek oil field. This program will include the prospect which is less
than 5km west of the Prinos production platform. The processing and
interpretation of the new seismic, which will take several months, must be
completed before any exploration prospects can be identified and a decision
taken to commence a drilling program.
Cogema, operator of the McClean Lake uranium project, expects to have filed
all information necessary for its application to licence the construction
of the tailings management facility with the licencing authorities before
November 1 1997.
Reclamation of the Stanrock tailings management area in Elliot Lake is
proceeding on budget and ahead of schedule. Denison's application to the
Atomic Energy Control Board to finalize all outstanding licencing matters
has been submitted. All remaining capital works, including the last dam at
the Stanrock site, are scheduled to be completed in 1998.
Field work on the Sagar project was completed on schedule and was
successful in identifying a number of gold and uranium drill targets which
will be examined during the next phase of exploration scheduled for 1998.
Denison is earning a 25% interest in this project.
Denison has a 3% cash flow royalty interest in an oil exploration permit in
Ecuador. Development of the field has now begun and royalty payments could
commence in early 1999. The maximum amount payable is US$7.8 million.
STATEMENT OF EARNINGS
Three months ended September 30
($ 000s)
1997 1996
Revenue $ 19,648 $ 25,323
--------- ---------
Operating and
exploration costs 14,400 11,893
General corporate
expenses 850 618
Amortization of
debt discount - 345
Gain on purchase
of long term debt - -
Other income (396) (687)
--------- ---------
14,854 12,169
--------- ---------
Earnings before
income and
mining taxes 4,794 13,154
Income and
mining tax 521 1,294
--------- ---------
Net earnings $ 4,273 $ 11,860
========= =========
Net earnings
per share $ 0.02 $ 0.04
STATEMENT OF EARNINGS
Nine months ended September 30
($ 000s)
1997 1996
Revenue $ 56,530 $ 62,743
--------- ---------
Operating and
exploration costs 37,069 40,548
General corporate
expenses 2,756 2,417
Amortization of
debt discount 345 1,285
Gain on purchase
of long term debt (8,495) (5,400)
Other income (1,504) (2,782)
--------- ---------
30,171 36,068
--------- ---------
Earnings before
income and
mining taxes 26,359 26,675
Income and
mining tax 1,676 2,622
--------- ---------
Net earnings $ 24,683 $ 24,053
========= =========
Net earnings
per share $ 0.08 $ 0.08
(c) Copyright 1997 Canjex Publishing Ltd. canada-stockwatch.com |
