Denison Mines Q4, full-year net losses balloon on impairment charges

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TORONTO – Denison Mines Corp. (TSX:DML) has cited big impairment charges for dipping deeply into the red ink last year.

The Toronto-based uranium miner said Thursday that its net loss from continuing operations in the fourth quarter was $30.5 million or six cents per share, up from $4.6 million or a penny per share in same period a year ago.

Revenue was $2.41 billion, down from $2.59 billion.

For the full year, Denison says its net loss from continuing operations totalled $83.8 million or 19 cents per share on revenue of $10.4 billion, compared with a net loss from continuing operations of $25.8 million or seven cents per share on revenue of $11.12 billion in 2012.

The prior year also included a net loss from discontinued operations of $92.5 million in its U.S. mining division that was equivalent to 24 cents per share.

The net loss from continuing operations for the year ended Dec. 31 included a non-cash impairment charge of $47.1 million to reduce the carrying value of its mineral properties, primarily the company’s Mutanga project in Zambia, to the estimated recoverable amount.

It also included a one-time non-cash deferred tax expense of $18.4 million as a result of changes to Crown mineral royalty regulations in Saskatchewan.

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