Weakening dollar affects Denison

Low oil prices and a weakening U.S. dollar adversely affected Denison Mines’ (TSE) second-quarter earnings, the company said recently. They combined to offset higher potash prices and production gains at Denison’s potash and uranium operations in Elliot Lake, Ont., and New Brunswick.

The Toronto-based resource giant reported net earnings of $26.2 million on revenues of $106.6 million for the six months ended June 30, up from $4.9 million on revenues of $108 milllion at the same time last year.

Denison’s first half results include an extraordinary gain of $25.9 million from the sale of a 44.8% interest in Standard Trustco to Roman Corp.

The Standard Trustco sale brought Denison’s net earnings for the first six months of 1988 to $31.3 million on revenues of $221.3 million from $9 million on revenues of $220 million in 1987.

After a provision for preferred share dividends, the net earnings per Class A and Class B participating share were 36 cents for the second quarter and 31 cents for the first six months of 1988. That compares with losses of 5 cents and 12 cents respectively in 1987.

Regular preferred share dividends were declared, payable Sept 15, to shareholders of record on Aug 31.

The sale of Denison’s interest in Standard Trustco in May, 1988, enabled the company to strengthen its cash position, said Chairman Helen Roman-Barber.

“As a result, Denison was able to eliminate its non-project-related debt and place itself in a more advantageous position to pursue its core business of acquiring, developing and operating natural resource properties,” she said.