Denison back in the black

With the McClean Lake uranium mine now in commercial production, Denison Mines (DEN-T) returned to the black last year, posting net earnings of $12.3 million, compared with a loss of $3.3 million in 1998.

Situated in northern Saskatchewan, the mine averaged 81% of design capacity during the last two months of 1999 and, since then, has been operating above its nominal capacity of 6 million lbs.

Denison holds a 22.5% interest in McClean Lake, which is operated and 70%-owned by Cogema Resources of France. OURD Canada holds a 7.5% stake.

The McClean reserves, together with those of the adjacent Midwest property, total 85 million lbs. uranium. The high-grade reserves are sufficient for a 14-year project life.

Denison’s share of production in the first year is 2.1 million lbs. of the first 4.5 million lbs. After the first year, the company will receive its pro rata share.