Recent increases in oil price brought on by the Persian Gulf crisis helped boost the earnings of Denison Mines (TSE) in the 3- month period ended Sept. 30. The company’s net earnings rose to $7.51 million (4 cents per share) in the third quarter, compared with a loss of $4.2 million (15 cents per share) in the year-earlier period. Revenue rose to $98.3 million from $80.1 million in the 1989 quarter. The per-share results are calculated after provision for preferred share dividends.
Denison Chief Executive Helen Roman-Barber attributed the company’s improved results to higher oil prices and better overall performance in its mining division.
The average oil price received by the company in the quarter rose to $21.93 per barrel, up from $12.24 in the second quarter and $14.87 in the third quarter of 1989.
For the first nine months of this year, Denison lost $94.3 million ($1.69 per share) on revenue of $268.9 million, compared with earnings of $5.3 million (25 cents loss per share) on revenue of $274.5 million a year ago.
At the company’s uranium mining division at Elliot Lake, Ont., workforce reductions were implemented on Aug. 1 with production reduced to an annual rate of 2.6 million lb. of uranium oxide. The mine’s output is sold on the basis of long-term supply contracts.
The third quarter also saw improvement at Denison’s potash operations in New Brunswick as prices remained stable, operating performance improved and the mine’s new hydraulic backfill system proved to be successful. Denison Mines (TSE) 3 months ended Sept. 30 1990 1989 Revenue $98,297 $80,115 Net earnings (loss) 7,515 (4,019)
per share 0.04 (0.15) 9 months ended Sept. 30 Revenue $268,899 $274,545 Net earnings (loss) (94,340) 5,325
per share (1.69) (0.25)
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