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UPDATE 1-Aurizon Mines profit boosted by non-cash gain
August 14, 2009 / 1:07 PM / in 8 years

UPDATE 1-Aurizon Mines profit boosted by non-cash gain

* Q2 adj EPS C$0.02/shr vs consensus C$0.05/shr

* Takes C$9.7 mln non-cash gain on derivatives

* Revenue up 22 pct on higher prices, lower costs (In U.S. dollars, unless noted)

TORONTO, Aug 14 (Reuters) - Canada’s Aurizon Mines (ARZ.TO) said on Friday its second-quarter profit more than doubled, due to higher realized gold prices, lower costs and C$9.7 million ($9 million) in non-cash derivative gains.

The gold miner earned C$13.6 million, or 8 Canadian cents per share, in the quarter ended June 30. That was up from a net profit of C$5.6 million, or 4 Canadian cents a share in the same period in 2008.

Stripping out the derivatives gains, the company earned C$3.9 million, or 2 Canadian cents per share.

That missed the profit of 5 Canadian cents expected by analysts polled by Reuters.

Revenue from the Casa Berardi mine in Quebec -- the company’s sole producing asset -- rose 22 percent to C$44.2 million, as gold sales climbed to 42,042 ounces from a year-earlier 41,217 ounces.

Realized gold prices during the quarter were $897 an ounce, up from $869 per ounce.

Cash costs per ounce fell to $386 an ounce from $436 an ounce. Total production costs, which include depreciation, depletion and accretion expenses, retreated to $575 per ounce from $646 per ounce.

Aurizon, which closed a C$47.3 million equity financing in April, maintained its full-year production guidance of 150,000 ounces to 155,000 ounces of gold at a cash cost of $405 per ounce for the year.

The company said in a statement it is actively pursuing “opportunities to enhance its growth profile”.

Aurizon’s cash balance increased to C$118.7 million on June 30 from C$55.6 million at the beginning of the year.

Its shares closed at C$4.36 on the Toronto Stock Exchange on Thursday. ($1=$1.08 Canadian) (Reporting by Cameron French; Editing by Derek Caney)

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