Improvements at Denison Mines’ (TSE) uranium operations at Elliot Lake, Ont., were offset by a number of other factors including lower oil and gas production during the three months ended March 31. As a result, Denison reported a first-quarter loss of $4.7 million on revenues of $86.4 million compared with net earnings of $1.3 million on revenues of $96 million in the same period last year.
After providing for preferred share dividends paid March 15, the loss per share was 15 cents for the first quarter compared with a loss of 11 cents per share in the corresponding 1989 period.
“The first quarter of 1990 was marked by better than planned performance at Elliot Lake and higher oil prices,” said Jake Fowler, president and chief operating officer.
The average oil price received by Denison rose by 5% to US$15.40 per barrel during the first three months of 1990 from US$14.72 a year earlier.
“However, these positive developments were insufficient to offset lower oil and gas production volumes, a stronger Canadian dollar, weaker potash prices and reduced potash production caused by a 3-week strike at 60% owned Denison-Potacan Potash Co. in New Brunswick,” he said. Since the resolution of the strike in early February, production has returned to normal levels.
As part of a plan to sell non- strategic assets, Denison is still attempting to unload its remaining oil and gas interests in Greece, Egypt, Spain and Italy. The company has agreed conditionally to sell all of its Canadian coal interest with the exception of its interest in Quintette Coal Ltd. for $25 million.006 Denison Mines (TSE) $000s except per-share items Quarter ended Mar. 31 1990 1989 Revenue $86,427 $95,951 Net earnings (loss) (4,771 ) 1,377
per share (0.15 ) (0.11)
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