Potash prices, lower output impact on Denison earnings

Weakened potash markets and reduced production in its oil and gas divisions had a negative impact on the financial results reported by Toronto-based Denison Mines (TSE). The company had a loss of $3.4 million on revenues of $367.1 million for the year ended Dec. 31, compared with earnings before unusual and extraordinary items of $4.7 million on revenues of $424.2 million in 1988.

A $125-million writedown of oil and gas properties and a $25.9- million gain on the sale of the company’s interest in Standard Trustco Ltd. resulted in a net loss of $94.3 million for 1988. There were no unusual extraordinary items in 1989.

After provision for preferred share dividends, the loss per participating share was 46 cents in 1989, compared with a per share loss, before extraordinary item of $2.71 in 1988. The 1988 per share loss after the extraordinary item was $2.25.

“Earnings in 1989 were adversely affected by weakened potash markets and reduced production volumes in both the mining and oil and gas divisions, which more than offset higher average oil prices.” said Chairman Helen Roman- Barber.

As part of Denison’s longterm strategic plans, the company is attempting to sell its oil and gas properties in Greece, Egypt, Italy and Spain, said Barber.

Denison has also declared quarterly preferred share dividends, payable March 15 to shareholders of record on Feb. 28. The dividends amount to $0.61 for the preferred shares Series A and $0.59 for the preferred shares Series B.006 0500,0211,0307 Denison Mines (TSE) Year ended Dec. 31 1989 1988 Revenue (000s) $367,144 $424,215 Net loss (000) 3,378 94,324 Net loss

(per share) 0.46 2.25004