Thursday, November 10, 2011

Aurizon (ARZ) Posts Q3 Strength: Record Revenue, 467 Rise in Profit

Aurizon, a gold producer focused on developing its projects in north-western Quebec, Canada, today posted its financial results for the third quarter of 2011. All figures are in Canadian dollars.

The company reported record revenue of $68 million for the third quarter of this year, up 71 percent compared to $39.9 million in the comparable quarter of 2010.

Net profit for the third quarter of 2011 was $13.1 million, or $0.08 per share, up 467 percent compared to $2.3 million, or $0.01 per share, reported in the third quarter of 2010.

Aurizon posted gross profit of $38.4 million for third quarter 2011 compared to $12.7 million for the same quarter of 2010.

The company increased its exploration expenditures in the third quarter of 2011 by 29 percent to $7.0 million, compared to $5.5 million for the comparable quarter of 2010, as it optioned new exploration properties as well as continued exploration and feasibility work at its Joanna gold development property.

George Paspalas, the company’s president and CEO, attributed the improved quarterly performance primarily to continued strength of its Casa Berardi gold mine operations. Gold production for the mine increased 49 percent compared to the production achieved in the third quarter of 2010.

“The operating performance at Casa Berardi continues to improve, and we are seeing greater margins as lower operating costs on a per ounce basis complement higher gold prices to realize an operating margin of US$1,198 per ounce for the quarter, an improvement of 233 percent over the corresponding period last year …,” Paspalas stated in the press release. “Our investment in the future of Casa Berardi is progressing well, with the shaft deepening in full swing and very encouraging exploration results from the 123 zone within the West Mine. We have also realized exploration success elsewhere at Fayolle and Marban, and are excited about the future potential for these projects. The optimization of the Joanna feasibility is progressing well, and a final study should be completed in second quarter 2012.”

For more information visit www.aurizon.com

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