Denison Reports A Loss Of $3.3 Million
TORONTO, ONTARIO--Denison Mines Limited today reported a loss of
$3.3 million for the year ended December 31, 1998 compared with
earnings of $25.7 million for the year ended December 31, 1997.
The 1998 loss reflects the write down of oil and gas properties by
$11.5 million reported in the third quarter. Earnings in the
previous year included a gain of $8.5 million from the repurchase
of long-term debt. Earnings for the three months ended December
31, 1998 were $2.9 million compared with $1.1 million in 1997.
Revenue in 1998 was $52.4 million compared with $73.1 million in
the previous year. The loss per share in 1998 was $0.01 compared
with earnings per share in 1997 of $0.08.
At the McClean Lake uranium project, construction of the Tailings
Management Facility is continuing. Final approval of the
construction by the Atomic Energy Control Board is now scheduled
for March 25, 1999, as is initial consideration of the McClean
operating license. The earliest date final approval of the
facility operating license could be obtained is May 19, 1999, with
production commencing shortly thereafter.
Denison has given notice, effective March 31, 1999, of
relinquishment of its license to operate the Prinos oil field in
Greece. Discussions with the Greek State on the procedures and
schedule of the decommissioning of the project, the costs of which
are shared equally with the Greek State, are continuing.
/T/
Consolidated Balance Sheets
Denison Mines Limited as at December 31
---------------------------------------------------------------
(Unaudited and in thousands) 1998 1997
---------------------------------------------------------------
ASSETS
Cash and short-term deposits $ 23,815 $ 36,327
Restricted cash 3,045 3,831
Marketable securities - 8,633
Accounts receivable 38,375 31,304
Product inventory 4,964 11,463
Raw materials, supplies and prepaid
expenses 1,652 1,588
Net property, plant and equipment 135,961 112,755
--------- ---------
$ 207,812 $ 205,901
--------- ---------
--------- ---------
LIABILITIES
Accounts payable and accrued
liabilities $ 46,343 $ 40,440
Income taxes due within one year 120 1,912
Income and mining taxes due after
one year 4,758 4,689
Long-term debt 56,354 45,973
Provision for post-employment
benefits 12,475 13,000
Provision for Elliot Lake mine
reclamation costs 9,137 9,704
Provision for Greek oil field
decommissioning costs 24,624 33,000
Deferred income and mining taxes 563 423
--------- ---------
154,374 149,141
SHAREHOLDERS' EQUITY 53,438 56,760
--------- ---------
$ 207,812 $ 205,901
--------- ---------
--------- ---------
Consolidated Statements of Earnings (Loss)
Denison Mines Limited for the Periods Ended December 31
---------------------------------------------------------------
(Unaudited and in thousands Twelve Months Ended
except per share data) Fourth Quarter December 31
---------------------------------------------------------------
1998 1997 1998 1997
------------------ --------------------
Revenue $ 12,101 $ 16,586 $ 52,428 $ 73,116
------------------ --------------------
Operating and exploration
costs 9,427 15,353 43,430 52,422
Write down of Greek oil
property - - 11,500 -
General corporate expenses 878 443 3,475 3,199
Investment income (449) (600) (2,723) (2,104)
Amortization of debt
discount - - - 345
Gain on purchase of long-term
debt - - - (8,495)
------------------ --------------------
9,856 15,196 55,682 45,367
------------------ --------------------
Earnings (loss) before
income and mining taxes 2,245 1,390 (3,254) 27,749
Income and mining taxes (675) 338 68 2,014
------------------ --------------------
Net earnings (loss) for
the period $ 2,920 $ 1,052 $ (3,322) $ 25,735
------------------ --------------------
------------------ --------------------
Net earnings (loss) per
common share $ 0.01 $ 0.00 $ (0.01) $ 0.08
------------------ --------------------
------------------ --------------------
Consolidated Statements of Cash Flow
Denison Mines Limited for the Periods ended December 31
---------------------------------------------------------------
Twelve Months Ended
(Unaudited and in thousands) Fourth Quarter December 31
---------------------------------------------------------------
1998 1997 1998 1997
----------------- --------------------
Operating Activities
Net earnings (loss) for the
period $ 2,920 $ 1,052 $ (3,322) $ 25,735
Items not requiring an
outlay of cash
Depreciation, depletion
and amortization 17 760 17 3,339
Write down of Greek oil
property - - 11,500 -
Amortization of debt
discount - - - 345
Gain on purchase of
long-term debt - - - (8,495)
Loss (gain) on sale of
assets (26) 81 (46) (741)
Increase (decrease) in
taxes payable after one
year and deferred income
and mining taxes 97 (84) 209 185
----------------- --------------------
3,008 1,809 8,358 20,368
Decrease (increase) in
operating working
capital (1,263) 4,752 2,949 (1,759)
Spending on Greek oil
field decommissioning
costs (8,376) (8) (8,376) (151)
Funding of Elliot Lake
mine reclamation costs (567) - (567) (5,600)
----------------- --------------------
Net cash generated by
operating activities (7,198) 6,553 2,364 12,858
----------------- --------------------
Financing Activities
Borrowings on loan
facility 1,852 2,319 10,381 25,846
Issue of Common Share
Purchase Warrants net
of costs - - - 793
Purchase of long-term debt - - - (13,920)
----------------- --------------------
1,852 2,319 10,381 12,719
----------------- --------------------
Investing Activities
Proceeds on sale of assets 26 (75) 46 829
Additions to property, plant
and equipment (9,885) (8,674) (34,722) (36,714)
Sale (purchase) of
marketable securities 6,266 963 8,633 (8,633)
Decrease in restricted
cash 239 (498) 786 4,816
----------------- --------------------
(3,354) (8,284) (25,257) (39,702)
----------------- --------------------
Increase (decrease) in
Cash and Short-term
Deposits (8,700) 588 (12,512) (14,125)
Cash and Short-term
Deposits - Beginning
of Period 32,515 35,739 36,327 50,452
------------------ --------------------
Cash and Short-term
Deposits - End of
Period $ 23,815 $ 36,327 $ 23,815 $ 36,327
------------------ --------------------
------------------ -------------------- |
