Aurizon posts loss on improved output

Despite higher gold production and realized prices for the yellow metal, Aurizon Mines (ARZ-T) incurred a loss of $1 million (or 2 per share) during the recent second quarter.

By comparison, the company posted a loss of $1.4 million (4 per share) for the second quarter of 2001. Revenue between the two periods grew to $4.2 million from $3.4 million. Operating cash improved to negative $190,000 from negative $874,000.

For the first half of the year, the loss amounted to $1.3 million (3 per share) on revenue of $8.7 million, compared with a year-earlier shortfall of $2.7 million (7 per share) on $6.8 million. Cash flow was $200,000 to the good, a turnaround from the $1.1 million bled in the first half of 2001.

The Sleeping Giant mine in Quebec, co-owned with Cambior (CBJ-T), produced 16,854 oz. gold (8,427 oz. for Aurizon’s account) in the recent quarter, just below expectations. Cash costs totalled US$238 per oz., or US$12 higher than a year earlier.

The company realized an average of US$302 per oz. for its quarterly production, and US$297 per oz. for the half-year.

The partners are studying the feasibility of deepening the main shaft, and will announce a decision in the fourth quarter.

During the recent quarter, Aurizon wrapped up two private placements for net proceeds of $12.4 million. It then acquired TVX Gold‘s (TVX-T) residual interest in the Casa Berardi property in northwestern Quebec, where a $2-million exploration program is under way.

At the end of June, Aurizon was debt-free and had working capital of more than $7 million.