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Denison Mines announces Q2 profit

The Canadian uranium miner said the swing to profit in the quarter was helped by a fall in certain expenses

Posted: Friday , 06 Aug 2010

(Reuters) - 

Canadian uranium producer Denison Mines Corp (DML.TO: Quote) (DNN.A: Quote) reported a quarterly profit, partly helped by a fall in certain expenses.

For the second quarter, the company posted net income of $16.7 million, or 5 cents a share, compared with net loss of $18.2 million, or 7 cents a share, a year earlier.

Revenue more than doubled to $27.2 million. Uranium sales also rose more than twice, to $19 million.

Analysts on average were expecting a loss of 2 cents a share, before special items, on revenue of $34.3 million, according to Thomson Reuters I/B/E/S.

The company said it expects 2010 capital expenditures of $18.4 million and sees mining revenue for the year to be $104.7 million.

Denison's mineral property exploration expenses were $1.8 million, down from $2.5 million a year ago, while its general and administrative expenses fell to $2.8 million from $3.5 million, a year earlier.

Shares of the company closed at C$1.51 Thursday on the Toronto Stock Exchange. (Reporting by Koustav Samanta in Bangalore; Editing by Maju Samuel)

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