Shares Listed: Toronto Stock Exchange - Ticker Symbol - ARZ NYSE
Amex: - Ticker Symbol - AZK U.S. Registration: (File 001-31893)
VANCOUVER, Aug. 14 /PRNewswire-FirstCall/ -- Aurizon is pleased to
announce record revenues and cash flow and other highlights of its
financial and operating results for the second quarter ended June
30, 2009, which have been prepared on the basis of available
information up to August 10, 2009. (To review the complete interim
unaudited financial statements and associated Management Discussion
and Analysis, which should be read in conjunction with the
Company's most recent audited annual financial statements, please
visit the Company's website at http://www.aurizon.com/ or view the
Company's SEDAR filings at http://www.sedar.com/). The second
quarter was highlighted by the following activities: - Record
revenues of $44.2 million. - Record cash flow from operating
activities of $22.5 million, up 19% compared to same quarter of
2008. - Earnings of $13.6 million, or $0.08 per share, and adjusted
earnings of $3.9 million, or $0.02 per share. - Gold production of
39,874 ounces, in line with plan. - Total cash costs of US$386 per
ounce, 11% lower than same quarter of 2008. - Equity financing in
April 2009 realized net proceeds of $47.3 million. At June 30,
2009, Aurizon had cash balances of $118.7 million, and working
capital of $84.1 million. Included in the cash balances is $30.2
million which is held in restricted accounts in respect of the Casa
Berardi project debt facility. "With cash balances of $118.7
million and working capital of $84.1 million, the Company is in a
strong financial position to pursue its growth strategy to increase
its reserve base and production profile" said David P. Hall,
President and Chief Executive Officer. "Strong profit margins and
operating cash flows from Casa Berardi should further strengthen
Aurizon's balance sheet, enabling the Company to fund its planned
exploration and development programs and pursue opportunities that
are attractive and accretive to Aurizon's stakeholders." FINANCIAL
RESULTS Second Quarter 2009 Earnings of $13.6 million, or $0.08 per
share, were achieved in the second quarter of 2009, compared to
earnings of $5.6 million, or $0.04 per share, in the same period of
2008. Results were positively impacted by non-cash derivative gains
of $9.7 million on an after tax basis. After adjusting for this
item, earnings for the quarter were $3.9 million, or $0.02 per
share, compared to adjusted earnings in the second quarter of 2008
of $1.1 million or $0.01 per share. In 2008, operating results were
positively impacted by a $3.2 million recovery of corporate
takeover defense costs and non-cash derivative gains of $1.4
million, on an after tax basis. Revenue from Casa Berardi
operations increased to $44.2 million in the second quarter of 2009
from the sale of 42,042 ounces of gold, compared to $36.3 million
from the sale of 41,217 ounces of gold in the same quarter of 2008,
primarily as a result of a weaker Canadian dollar and higher
realized gold prices. The average realized gold price was US$897
per ounce and the average Cad/US exchange rate was 1.17, compared
to realized prices of US$869 per ounce at an average exchange rate
of 1.01 in the same quarter of 2008. The 2009 average realized gold
price includes the sale of 16,042 ounces of gold at an average
price of US$874 per ounce from the exercise of call options,
compared to 18,717 ounces of gold sold at an average price of
US$839 per ounce from the exercise of call options in the second
quarter of 2008. Actual gold production in the quarter was 39,874
ounces, compared to 36,871 ounces in the same quarter of 2008.
Subsequent to June 30, 2009, the Company effectively reduced its
exposure to the gold call options sold by purchasing 16,614 ounces
of call options expiring in 2010 with an exercise price of US$863
per ounce. This purchase effectively reduces the ounces that are
subject to call options in 2010 by 25% and raises the average call
price in 2010 from US$908 per ounce to US$923 per ounce. The cost
of the purchase, totalling US$2.4 million, will be reflected on the
balance sheet as a derivative instrument asset and changes in the
fair value of the call options reflected in earnings. Operating
costs in the second quarter of 2009 totalled $19.1 million, while
depletion, depreciation and accretion ("DD A") totalled $9.3
million. On a unit cost basis, total cash costs per ounce of gold
sold were US$386(1) and DD A was US$189 per ounce, for a total
production cost of US$575 per ounce. In the second quarter of 2009,
lower gold option volatilities, a stronger Canadian dollar, the
expiry of gold call options and foreign exchange contracts,
partially mitigated by rising gold prices, resulted in a non-cash
gain of $13.9 million and a decrease in the net unrealized
derivative liabilities to $12.4 million at June 30, 2009. In the
same quarter of 2008, the non-cash gain was $1.7 million. There are
no margin requirements with respect to these derivative positions.
Administrative and general costs in the second quarter of 2009 were
lower than the same period of 2008 at $2.6 million compared to $3.3
million resulting from lower stock based compensation charges in
2009. Excluding these non-cash stock based compensation charges,
general and administrative costs were $2.0 million in 2009 compared
to $1.8 million in the same quarter of 2008. Exploration and
pre-feasibility expenditures of $0.7 million incurred in respect of
Joanna and Kipawa were charged to operations during the second
quarter of 2009, compared to $2.9 million in the same period of
2008. Interest costs associated with the project debt facility
dropped to $0.1 million from $0.6 million in the second quarter of
2008 as a result of lower debt and declining interest rates. Income
and resource taxes totalled $11.5 million, of which $3.3 million
are current Quebec mining taxes and $8.2 million are future income
taxes. The future income taxes are a result of temporary
differences between the tax and accounting bases of the Company's
assets and liabilities. Foreign exchange losses totalling $1.1
million were realized in the second quarter of 2009, compared to a
loss of $0.1 million in the same quarter of 2008. The primary cause
for the higher loss in the second quarter of 2009 is the delivery
of US$9.0 million dollars into foreign exchange contracts at rates
less favourable than the prevailing market rates. Cash flow from
operating activities increased 19% to $22.5 million in the second
quarter of 2009, compared to cash flow of $19.0 million in the same
period of 2008. A weaker Canadian dollar and higher realized US
dollar gold prices resulted in a 19% increase in realized Canadian
dollar gold prices and a wider operating profit margin in the
second quarter of 2009 compared to the same period last year. In
the second quarter of 2008 there was also a $4.0 million recovery
of takeover defense costs included in other income. Capital
expenditures totalled $10.1 million in the second quarter, of which
$7.4 million was on sustaining capital and $2.7 million was on
exploration activity at Casa Berardi. In accordance with the terms
of the project debt facility, restricted cash accounts are
maintained for Casa Berardi's operations. These restricted cash
balances increased by $4.0 million in the second quarter of 2009 as
a result of positive cash flow from Casa Berardi operations, net of
sustaining capital and the release of $13.0 million to the
Company's general account. Aggregate investing activities resulted
in cash outflows of $14.1 million during the second quarter of
2009, compared to outflows of $21.6 million in the same period of
2008. A bought deal equity financing in April 2009, at $5.15 per
share, resulted in net proceeds of $47.3 million. In addition, the
exercise of incentive stock options provided a further $0.8
million. These equity issuances, reduced by a repayment of
government assistance totalling $0.6 million, resulted in net cash
inflows of $47.5 million from financing activities during the
second quarter of 2009. In the same period of 2008, financing
activities resulted in a net cash inflow of $1.1 million. First
Half 2009 Earnings for the six months ended June 30, 2009, were
$18.6 million or $0.12 per share, compared to earnings of $1.9
million or $0.01 per share in the same period of 2008. Operating
results were impacted by non-cash derivative gains of $9.3 million
on an after tax basis. After adjusting for this item, earnings for
the first half were $9.3 million, or $0.06 per share, compared to
adjusted earnings in the same period of 2008 of $5.3 million or
$0.04 per share, which included the impact of the recovery of
defense costs of $3.2 million, on an after tax basis. Cash flow
from operating activities in the first half of 2009 totalled $42.3
million, compared to cash flow of $34.5 million for the same period
of 2008. Operating profit margin per ounce increased 15% to
US$511(2) per ounce for the six months ended June 30, 2009,
compared to US$444 per ounce in the same period of 2008. Investing
activities in the first half of 2009 totalled $29.6 million, of
which $20.6 million was incurred on capital and exploration
expenditures and $9.0 million was transferred to restricted cash
accounts. In the same period of 2008, investing activities totalled
$15.1 million of which $10.4 million was incurred on capital
expenditures, $4.1 million was transferred to restricted cash
accounts, and $0.5 million was paid as a reassessment of refundable
tax credits. Financing activities during the first half of 2009
resulted in a net cash inflow of $41.5 million due to the $47.3
million public equity financing and $3.0 million from the exercise
of incentive stock options, reduced by a principal debt repayment
of $8.2 million on March 31, 2009 and repayment of a $0.6 million
government assistance obligation. In the same period of 2008,
financing activities resulted in a net cash outflow of $24.5
million due to a principal debt repayment of $26.7 million, reduced
by the exercise of incentive stock options totalling $2.3 million.
CASH RESOURCES AND LIQUIDITY As at June 30, 2009, cash balances
increased to $118.7 million, compared to $55.6 million at the
beginning of the year. Included in these cash balances are
restricted cash amounts in respect of the Casa Berardi debt
facility totalling $30.2 million, compared to $21.2 million as at
December 31, 2008. Aurizon had working capital of $84.1 million as
at June 30, 2009, compared to $24.1 million at the end of 2008.
Reflected in working capital are the two final project debt
repayments due in September 2009 and March 2010 totalling $21.0
million and net derivative liabilities totalling $10.0 million
compared to $13.3 million at the end of 2008. Long-term debt
related to refundable government assistance totalled $0.7 million
at June 30, 2009, compared to long-term debt of $9.4 million at the
beginning of the year, which included project debt of $8.25
million. CASA BERARDI Casa Berardi produced 39,874 ounces of gold
in the second quarter of 2009, and 42,042 ounces were sold at an
average price US$897 per ounce. Since commissioning the mill in
November 2006, Casa Berardi has produced 414,870 ounces of gold.
Operations
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2009 2008
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H1 Q2 Q1 Q4 Q3 Q2 Q1
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Operating results Tonnes milled 337,913 170,429 167,484 169,291
161,358 160,054 163,694 Grade - grams/ tonne 7.88 7.84 7.93 7.70
8.58 7.73 8.63 Mill recoveries - % 92.0% 92.8% 91.3% 91.5% 93.3%
92.7% 92.6%
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Gold Production - ounces 78,840 39,874 38,966 38,363 41,522 36,871
42,074
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Gold sold - ounces 79,442 42,042 37,400 38,348 40,228 41,217 39,611
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Per ounce data - US$ Average realized gold price $893 $897 $888
$793 $845 $869 $877
------------------------------------------------------------- Total
cash costs(1) $382 $386 $379 $356 $405 $436 $422 Amortiza- tion(2)
186 189 183 226 211 210 191
------------------------------------------------------------- Total
production costs(3) $568 $575 $562 $582 $616 $646 $613
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Table footnotes: (1) Operating costs net of by-product silver
credits, divided by ounces sold, and divided by the average Bank of
Canada Cad$/US$ rate. (2) Depreciation, depletion and accretion
expenses divided by ounces sold, and divided by the average Bank of
Canada Cad$/US$ rate. (3) Total cash costs plus depreciation,
depletion and accretion expenses per ounce of gold sold. Ore
throughput in the mill during the second quarter of 2009 increased
to 170,429 tonnes from 160,054 tonnes in the same period of 2008 as
a stable daily production rate of 1,870 tonnes per day was
achieved. An average ore grade of 7.8 grams/tonne was achieved in
the second quarter of 2009, in line with plan. Mill recoveries
averaged 92.8% in the second quarter of 2009. This compares to ore
grades of 7.7 grams/tonne and mill recoveries of 92.7% in the
second quarter of 2008. Since March 2009, ore feed has been
provided by three different zones including the 113 Zone, the NW
Zone, and the newly developed Lower Inter Zone, thereby improving
flexibility in the mining operations. Total cash costs, on the
basis of gold sold, were US$386 per ounce in the second quarter of
2009, in line with plan, and compared to US$436 per ounce in the
second quarter of 2008. The weakness of the Canadian dollar in the
second quarter of 2009 was the primary factor for the lower unit
costs compared to those achieved in the same period of 2008. Unit
mining costs in the second quarter of 2009 were $112 per tonne, 7%
higher than the same quarter of 2008 costs of $105 per tonne, due
to increased stope preparation associated with the start-up of
mining the Lower Inter Zone in the quarter. Operating profit margin
per ounce increased 18% to US$511 per ounce from US$433 per ounce
in the same quarter of 2008. Casa Berardi Exploration Exploration
activities at Casa Berardi during the first half of 2009 have
focused on the completion of an exploration drift at the 810 metre
level, east of Zone 113 and south of the Casa Berardi fault. The
drift provides drill access to test the depth extension of Zone 113
and to test the continuity and extension of Zones 118 to 122 and
the 123-South Zone. Drilling in the vicinity of Zone 113 has
confirmed the previous geological interpretation of the Zone and
has extended the favourable gold trend 100 metres deeper to the 950
metre level. For the remainder of 2009, $10.5 million will be
invested at Casa Berardi for exploration activities, including $4.2
million on underground development and infrastructure. Underground
exploration will continue from the exploration drift at the 810
metre level of the West mine, to test the depth extension of Zone
113 and the continuity and extension of Zones 118 and 123-South. In
addition, an underground and surface drill program has recently
commenced to explore along the west extension of the Lower Inter
Zone, along the Principal Zone and along the dip extension of the
East Mine with the objective of delineating mineral resources. Nine
drill rigs are currently active at Casa Berardi. At the Casa
Berardi East Mine, the Company has decided to defer mining by open
pit, the crown pillar until closer to the end of the mine life and
focus on the opportunity to re-commence underground operations. The
technical assessment study on mining the upper portion of the
Principal Zones by open pit is in progress and is expected to be
completed in the fourth quarter of 2009. The study will be
completed in accordance with the Company's global development
principles supporting technical, economic, environmental and social
considerations. OTHER PROPERTIES Joanna Gold Property Exploration
activities in the first half of 2009 resulted in the discovery of
two new mineralized trends which were identified north and south of
the main Heva-Hosco gold bearing trend at Joanna. Both discoveries
remain open on strike and down dip. Work also included the testing
of a deep exploration target 400 to 700 metres down-plunge from the
Hosco mineral resource contour. Results obtained from the program
indicate the grade and thickness of the Hosco mineralization
continue. No gold enrichment was encountered. At Joanna, a
pre-feasibility study is currently in progress on the Hosco block,
incorporating the new measured and indicated resource estimate of
approximately 1.27 million ounces, together with the results of the
ongoing metallurgical tests. The pre-feasibility study will be
completed in accordance with the Company's global development
principles supporting technical, economic, environmental and social
considerations. It is anticipated that the study will be completed
in the fourth quarter, 2009. Kipawa Gold/Uranium Property
Exploration activity at Kipawa in the second quarter was focussed
primarily on the initiation of soil sampling in areas of interest
contiguous to gold showings identified in 2008, with the objective
of extending the known gold structures. This work follows the
analysis and interpretation of results from the surface programs
performed in 2008. OUTLOOK Based upon the first half results and
the 2009 mine plan, Casa Berardi remains on target to produce
between 150,000 to 155,000 ounces of gold. The recent strength of
the Canadian dollar has resulted in revised total cash costs of
US$433 per ounce for the second half of the year and US$405 per
ounce for the full year, assuming a Cad$/US$ exchange rate of 1.10
for the second half of 2009. Previous guidance for 2009 was US$390
per ounce, assuming a Cad$/US$ exchange rate of 1.20. Sustaining
capital costs at Casa Berardi for the remainder of 2009 are
estimated to total $9.7 million, including $5.0 million for the
development of the upper and lower portions of the 113 Zone and of
the Lower Inter Zone and $4.6 million on property, plant and mine
equipment improvements. In addition, a further $10.5 million will
be spent on exploration. The Company is in a strong financial
position at June 30, 2009, with cash balances of $118.7 million and
working capital of $84.1 million. The remaining project debt of $21
million, which is repayable in the next nine months, is reflected
in working capital. The outlook for gold remains positive which
should provide strong profit margins and operating cash flows from
Casa Berardi, which should further strengthen Aurizon's balance
sheet while continuing to fund its planned exploration and capital
programs. With the stability of operations at Casa Berardi
providing significant cash flow and a strong balance sheet, the
Company continues to actively pursue opportunities to enhance its
growth profile. NON-GAAP MEASURES a) Calculation of Adjusted
Earnings Adjusted earnings are calculated by removing the gains and
losses, net of income tax, resulting from the mark-to-market
revaluation of the Company's gold and foreign currency price
protection contracts and defense recovery costs, as detailed on the
table below. Adjusted earnings do not constitute a measure
recognized by generally accepted accounting principles (GAAP) in
Canada or the United States, and do not have a standardized meaning
defined by GAAP. The Company discloses this measure, which is based
on its financial statements, to assist in the understanding of the
Company's operating results and financial position.
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2nd 2nd 1st 1st Quarter Quarter Half Half 2009 2008 2009 2008
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(in thousands of Canadian dollars, except per share amounts)
Earnings as reported $13,585 $5,643 $18,633 $1,867 Add (deduct) the
after-tax effect of: Unrealized (gain) loss on derivative
instruments (9,723) (1,352) (9,305) 6,635 Recovery of defense costs
- (3,220) - (3,220)
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Adjusted earnings $3,862 $1,071 $9,328 $5,282
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Adjusted earnings per share $0.02 $0.01 $0.06 $0.04
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b) Total Cash Costs per Gold Ounce Aurizon has included a non-GAAP
performance measure of total cash costs per ounce of gold in this
report. Aurizon reports total cash costs on a sales basis. In the
gold mining industry, this is a common performance measure, but
does not have any standardized meaning, and is a non-GAAP measure.
The Company believes that, in addition to conventional measures,
prepared in accordance with GAAP, certain investors use this
information to evaluate the Company's performance and ability to
generate cash flow. Accordingly, it is intended to provide
additional information and should not be considered in isolation or
as a substitute for measures of performance prepared in accordance
with GAAP. Total cash costs per gold ounce are derived from amounts
included in the statements of earnings and include mine site
operating costs such as mining, processing and administration, but
exclude amortization, reclamation costs, financing costs and
capital development costs. These costs are reduced by silver
by-product sales and then divided by gold ounces sold and the
average Bank of Canada Cad$/US$ exchange rate to arrive at the
total cash operating costs per ounce. c) Unit Mining Costs per
Tonne Unit mining costs per tonne is a non-GAAP measure and may not
be comparable to data prepared by other gold producers. The Company
believes that this generally accepted industry measure is a
realistic indication of operating performance and is useful in
allowing year over year comparisons. Unit mining costs per tonne is
calculated by adjusting operating costs as shown in the Statements
of Earnings and Comprehensive Income for inventory adjustments and
then dividing by the tonnes of ore processed through the mill. d)
Operating Profit Margins per Ounce Operating profit margins per
ounce are a non-GAAP measure, and are calculated by subtracting the
total cash costs per ounce from the average realized gold price.
For the quarter ended June 30, 2009, the average realized gold
price was US$897 less total cash costs of US $386 for a operating
profit margin of US$511 per ounce, compared to an average realized
gold price of US$869 less total cash costs of US$436 for a
operating profit margin of US$433 per ounce for the second quarter
of 2008. Outstanding Share Data As of August 10, 2009, Aurizon had
158,825,232 common shares issued and outstanding. In addition,
7,652,475 incentive stock options, representing 4.8% of outstanding
share capital, are outstanding and exercisable into common shares
at an average price of $3.63 per share. Common Shares (TSX - ARZ
& NYSE Amex - AZK) --------------------------------------------
June 30, December 31, 2009 2008
-------------------------------------------- Issued 158,787,732
148,068,298 Fully-diluted 166,477,707 156,586,548 Weighted average
153,605,599 147,707,642
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-------------------------------------------- Qualified Person and
Quality Control Information of a scientific or technical nature was
prepared under the supervision of Michel Gilbert, P. Eng.,
Executive Vice-President, Operations of Aurizon and a qualified
person under National Instrument 43-101. Conference Call Aurizon
management will host a conference call and live webcast for
analysts and investors on Friday, August 14, 2009 at 8:00 a.m.
Pacific Standard Time (11:00 a.m. Eastern Standard Time) to review
the results. You may access the call by calling the operator at
416-644-3417 or toll free access at 1-800-732-9307 ten (10) minutes
prior to the scheduled start time. The call is being webcast and
can be accessed at Aurizon's website at http://www.aurizon.com/ or
enter the following URL into your web browser:
http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=2732180.
Those who wish to listen to a recording of the conference call at a
later time may do so by calling 416-640-1917 or 1-877-289-8525
(Passcode 21310490 followed by number sign). This playback version
of the call will be available until Friday, August 14, 2009.
Forward Looking Statements and Information This report contains
"forward-looking statements" and "forward-looking information"
within the meaning of applicable securities regulations in Canada
and the United States (collectively, "forward-looking
information"). The forward-looking information contained in this
report is made as of the date of this report. Except as required
under applicable securities legislation, the Company does not
intend, and does not assume any obligation, to update this
forward-looking information. Forward-looking information includes,
but is not limited to, statements with respect to anticipated rates
of recovery, timing and amount of future production, anticipated
total cash cost per ounce of gold to be produced at the Casa
Berardi Mine, currency exchange rates, the future price of gold and
the effects thereof, the estimation of mineral reserves and mineral
resources, the realization of mineral reserve and mineral resource
estimates and the economic viability thereof, the timing and amount
of estimated capital expenditures, costs and timing of the
development of new deposits, plans and budgets for and expected
timing and results of exploration activities, permitting
time-lines, requirements for additional capital, government
regulation of mining operations, environmental risks, reclamation
obligations and expenses, title disputes or claims, adequacy of
insurance coverage, the availability of qualified labour,
acquisition plans and strategies, and the payment of dividends in
the future. Often, but not always, forward-looking information can
be identified by the use of words such as "plans", "expects, "is
expected", "budget", "scheduled", "estimates", forecasts",
"intends", "anticipates", or "believes", or the negatives thereof
or variations of such words and phrases or statements that certain
actions, events or results "may", "could", "would", "might", or
"will" be taken, occur or be achieved. The forward-looking
information contained in this report is based on certain
assumptions that the Company believes are reasonable, including the
exchange rates of the U.S. and Canadian currency in 2009, that the
current price of and demand for gold will be sustained or will
improve, the supply of gold will remain stable, that the current
mill recovery rates at the Company's Casa Berardi Mine will
continue, that the Company's current mine plan can be achieved,
that the general business and economic conditions will not change
in a material adverse manner, that financing will be available if
and when needed on reasonable terms and that the Company will not
experience any material accident, labor dispute, or failure of
plant or equipment. However, forward-looking information involves
known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of the
Company to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking information. Such factors include, among others,
the risk that actual results of exploration activities will be
different than anticipated, that cost of labour, equipment or
materials will increase more than expected, that the future price
of gold will decline, that the Canadian dollar will strengthen
against the U.S. dollar, that mineral reserves or mineral resources
are not as estimated, that actual costs or actual results of
reclamation activities are greater than expected; that changes in
project parameters as plans continue to be refined may result in
increased costs, of lower rates of production than expected, of
unexpected variations in ore reserves, grade or recover rates, of
failure of plant, equipment or processes to operate as anticipated,
of accidents, labour disputes and other risks generally associated
with mining, unanticipated delays in obtaining governmental
approvals or financing or in the completion of development or
construction activities, as well as those factors and other risks
more fully described in Aurizon's Annual Information Form filed
with the securities commission of all of the provinces and
territories of Canada and in Aurizon's Annual Report on Form 40-F
filed with the United States Securities and Exchange Commission,
which are available on Sedar at http://www.sedar.com/ and on Edgar
at http://www.sec.gov/. Although the Company has attempted to
identify important factors that could cause actual actions, events
or results to differ materially from those described in
forward-looking information, there may be other factors that cause
actions, events or results not be as anticipated, estimated or
intended. There can be no assurance that forward-looking
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. Readers are cautioned not to place undue reliance on
forward-looking information due to the inherent uncertainty
thereof. Aurizon is a gold producer with a growth strategy focused
on developing its existing projects in the Abitibi region of
north-western Quebec, one of the world's most prolific gold and
base metal regions, and by increasing its asset base through
accretive transactions. Aurizon shares trade on the Toronto Stock
Exchange under the symbol "ARZ" and on the NYSE Amex under the
symbol "AZK". Additional information on Aurizon and its properties
is available on Aurizon's website at http://www.aurizon.com/.
Aurizon Mines Ltd. Balance Sheets (unaudited) - as at June 30
December 31 (in thousands of Canadian Dollars) 2009 2008
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$ $ ASSETS CURRENT Cash and cash equivalents 88,467 34,337
Restricted cash 30,207 21,225 Accounts receivable and prepaid
expenses 3,943 4,419 Refundable tax credits and mining duties 5,301
5,301 Derivative instrument assets 7 412 Inventories 10,505 10,145
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138,430 75,839 Derivative instrument assets 12 1,420 Other assets
1,896 1,553 Property, plant & equipment 56,509 54,761 Mineral
properties 125,701 124,378
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TOTAL ASSETS 322,548 257,951
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LIABILITIES CURRENT Accounts payable and accrued liabilities 19,689
15,067 Derivative instrument liabilities 10,014 13,727 Current
portion of long-term debt 21,577 21,663 Current provincial mining
taxes payable 3,067 1,302
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54,347 51,759 Derivative instrument liabilities 2,431 13,474
Long-term debt 708 9,430 Asset retirement obligations 21,322 20,905
Future income tax liabilities 28,054 17,442
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TOTAL LIABILITIES 106,862 113,010
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SHAREHOLDERS' EQUITY Share Capital 246,530 194,647 Contributed
Surplus 872 872 Stock based compensation 9,242 9,013 Deficit
(40,958) (59,591)
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TOTAL SHAREHOLDERS' EQUITY 215,686 144,941
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 322,548 257,951
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Aurizon Mines Ltd. Statements of Earnings and Comprehensive Income
(unaudited) Three months ended Six months ended (in thousands,
except per share June 30 June 30 amounts, of Canadian Dollars) 2009
2008 2009 2008
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$ $ $ $ REVENUE Mining operations 44,224 36,299 85,790 71,433
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EXPENSES Operating 19,085 18,120 36,752 34,989 Depreciation,
depletion and accretion 9,281 8,661 17,793 16,211 Administrative
and general 2,622 3,313 5,415 5,828 Exploration costs 738 2,906
1,970 5,231 Unrealized derivative (gains) losses (13,876) (1,680)
(12,943) 8,242 Interest on long-term debt 131 618 383 1,765 Foreign
exchange loss (gain) 1,118 62 2,814 (1,098) Capital taxes 195 (99)
398 126 Other income (137) (4,552) (454) (5,302)
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19,157 27,349 52,128 65,992
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Earnings for the period before income taxes 25,067 8,950 33,662
5,441 Current provincial mining taxes (3,250) (497) (4,417) (497)
Future income tax expense relating to provincial mining taxes (729)
(1,181) (1,151) (1,942) Future income tax expense (7,503) (1,629)
(9,461) (1,135)
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Earnings and comprehensive income for the period 13,585 5,643
18,633 1,867
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Earnings per share - basic and diluted 0.08 0.04 0.12 0.01
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Weighted average number of common shares outstanding (thousands)
158,716 147,712 153,606 147,412
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Aurizon Mines Ltd. Statements of Deficit (unaudited) Three months
ended Six months ended (in thousands of June 30 June 30 Canadian
Dollars) 2009 2008 2009 2008
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$ $ $ $ Deficit - Beginning of period as previously reported
(54,543) (68,288) (59,591) (69,006) Retrospective adoption of new
accounting standard - - - 4,494
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Deficit - as adjusted (54,543) (68,288) (59,591) (64,512) Earnings
for the period 13,585 5,643 18,633 1,867
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Deficit - end of period (40,958) (62,645) (40,958) (62,645)
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Aurizon Mines Ltd. Statements of Cash Flow (unaudited) Three months
ended Six months ended (in thousands of June 30 June 30 Canadian
Dollars) 2009 2008 2009 2008
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$ $ $ $ CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES Earnings
for the period 13,585 5,643 18,633 1,867 Adjustments for non-cash
items: Depreciation, depletion, and accretion 9,281 8,661 17,793
16,211 Refundable tax credits (129) (533) (343) (915) Loss (gain)
on sale of property, plant and equipment - - 34 (11) Stock based
compensation 641 1,532 1,565 1,893 Unrealized non-hedge derivative
(gains) losses (13,876) (1,680) (12,943) 8,242 Future income tax
expense relating to mining duties 729 1,181 1,151 1,942 Future
income tax expense 7,503 1,629 9,461 1,135
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17,734 16,433 35,351 30,364 Decrease in non-cash working capital
items 4,803 2,526 6,922 4,161
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22,537 18,959 42,273 34,525
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CASH USED IN INVESTING ACTIVITIES Property, plant and equipment
(4,198) (1,740) (7,723) (3,287) Mineral properties (5,937) (4,718)
(12,919) (7,110) Restricted cash funding (3,969) (15,169) (8,982)
(4,142) Refundable tax credits - - - (534)
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(14,104) (21,627) (29,624) (15,073)
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CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES Issuance of shares,
net of costs 48,086 1,406 50,348 2,332 Long-term debt (639) (349)
(8,867) (26,881)
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47,447 1,057 41,481 (24,549)
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INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 55,880 (1,611)
54,130 (5,097) CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD
32,587 21,350 34,337 24,836
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CASH AND CASH EQUIVALENTS - END OF PERIOD 88,467 19,739 88,467
19,739
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DATASOURCE: Aurizon Mines Ltd. CONTACT: AURIZON MINES LTD., David
P. Hall, President and C.E.O., Ian S. Walton, Executive Vice
President and C.F.O., Telephone: (604) 687-6600, Toll Free:
1-888-411-GOLD, Fax: (604) 687-3932, Web Site:
http://www.aurizon.com/, Email: ; or Renmark Financial
Communications Inc., 2080 Rene-Levesque Blvd. West, Montreal, QC,
H3H 1R6, Barry Mire: ; Henri Perron: ; Media - Vanessa Napoli: ,
Tel: (514) 939-3989, Fax: (514) 939-3717
Copyright