The second quarter was not kind to gold producer Aurizon Mines (ARZ-T), which took a $1.4 million net loss (4 per share) on revenues of $3.4 million, a loss that included a one-time restructuring charge of $783,000.
The loss compares with a profit of $763,000 in the second quarter of 2000, when revenues were $7.2 million. In the first half of 2001, Aurizon is running at a loss of $2.7 million on revenues of $6.8 million; during the comparable period last year, the company was showing earnings of $1.4 million on revenues of $14.6 million.
The sale of Aurizon’s 50% interest in the Beaufor mine in northwestern Quebec to Richmont Mines (RIC-T), which closed during the quarter, brought in $1.65 million in cash but left Aurizon with care-and-maintenance costs of $76,000.
The Sleeping Giant mine in northwestern Quebec produced 16,203 oz. gold in the quarter, shared between partners Aurizon and Cambior (CBJ-T). For the first half, the mine has produced 32,765 oz., down from 40,094 oz. in the first six months of 2000. Costs increased, to US$223 per oz. from US$187 per oz. in the first half of 2000, as grades decreased to 9.7 grams per tonne from 11.5 grams.
The weak gold market has left Aurizon with limited cash flow, with the result that the company had to reschedule payments on the Casa Berardi mine, which it purchased from TVX Gold (TVX-T) in 1998.
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