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Gold/Mining/Energy : denison mines -- Ignore unavailable to you. Want to Upgrade?

To: bruce m who wrote (128)	10/29/1997 6:19:00 PM
From: Lalit Jain	Respond to of 301

bruce, 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