A writedown of the value of the Sleeping Giant gold mine in northwestern Quebec was the principal item in a $5.7-million loss posted by Aurizon Mines (ARZ-T) in 2004.
The $4.7-million writedown accounted for an expected increase in capital costs at Sleeping Giant, which would provide for investment in drifting and cross-cutting at the lower level of the mine. Aurizon also expects operating costs to increase because the mine is exploiting variably-dipping structures, which are slower to mine.
The carrying value of the mine was reduced to the estimated present value of future net cash flows.
Aurizon took in $18.4 million in revenue in 2004, up from $18.3 million the year before, and the $5.7-million loss works out to 6 per share. In 2003 Aurizon posted a loss of $301,154.
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