Aur Resources doubles net income in 2006

Aur Resources (AUR-T) production may have dropped in 2006 but a spike in copper prices allowed the company to more than double its net income to US$293.7 million.

Aur produced 223 million lbs. of copper in 2006 17 million fewer lbs. than 2005 when the companys net income was US$142.3 million.

But copper peaked at US$3.99 per lb. last May and averaged US$3.06 per lb. for the year. Aurs average realized price was US$3.30 per lb.

The company paid US$25.5 million in dividends in 2006, or US$1.20 per share. Shareholders equity increased 47% in 2006 to US$646.9 million.

Mining revenues were 65% higher in 2006 at US$738.3 million but cash operating costs were US11 higher at US$78 per lb. a result of lower production and higher energy, reagent and labour costs.

Production rose at Aurs Quebrada Blanca mine in Chile to 181.6 million lbs. copper compared to 177 million lbs. in 2005 while production dropped at the Andacollo mine, also in Chile, to 41.4 million lbs. from 51.6 million lbs. the year before.

Another 11.4 million lbs. the decrease in copper production was from shutting the Louvicourt mine in Val dOr, Que. last July.

Looking ahead, Aur plans to increase production by more than 100% over the next three years. The company has allocated US$8 million for exploration and US$3 million to identify acquisition opportunities for advanced stage projects in 2007.

The Duck Pond copper-zinc deposit in Newfoundland was supposed to be completed during the last quarter of 2006 but weather and concentrator commissioning delays pushed commercial production to February this year. Duck Pond is expected to produce 30 million lbs. of copper and 56 million lbs. of zinc in 2007 and the project is expected to run for 6 to 8 years.

Production at the 90%-owned Andacollo hypogene Copper-Gold deposit in Chile is expected to start by late 2009. The company spent US$19 million on the project in 2006. The company has started on basic engineering, geotechnical studies related to mine design and environmental permitting. Aur expects the equipment fleet orders to begin arriving in the summer. The mine is expected to produce 155 million lbs. copper and 58,000 oz. gold per year over 21 years.

Aur spent US$8.1 million on exploration in 2006 compared to US$7.4 million in 2005. The drill program at the Eldorado gold-silver property in southern Argentina is ongoing and two other drill programs will start by early 2007: the Macuchi massive sulphide property in Ecuador where 435,000 tonnes of ore grading 11.5 grams gold per tonne and 4.7% copper was mined during the 1940s; and the Coyote porphyry copper property in central Chile.