Shares Listed: Toronto Stock Exchange - Ticker Symbol - ARZ NYSE
Amex: - Ticker Symbol - AZK U.S. Registration: (File 001-31893)
VANCOUVER, Nov. 5 /PRNewswire-FirstCall/ -- Aurizon reports
financial results for the third quarter of 2009, which have been
prepared on the basis of available information up to November 2,
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.ocm/ or view the Company's SEDAR
filings at http://www.sedar.com/). The third quarter was
highlighted by the following activities: - Project debt of $21
million repaid in full and $28 million released from restricted
accounts. - Revenues of $44.2 million, matching second quarter's
record revenues. - Cash flow from operating activities of $17.6
million, up 24% compared to same quarter of 2008. - Earnings of
$8.2 million, or $0.05 per share, and adjusted earnings of $7.7
million, or $0.05 per share. - Gold production of 43,962 ounces,
10% higher than plan and 6% higher than the same quarter of 2008. -
Total cash costs of US$392 per ounce, 3% lower than same quarter of
2008. At September 30, 2009, Aurizon had cash balances of $108
million, working capital of $95.4 million, and no bank debt.
"Aurizon produced another strong quarter of excellent operational
performance and significant cash flow. This is due to the
commitment of our strong Quebec team, which has experienced minimal
turnover during the past year." said David P. Hall, President and
Chief Executive Officer. "As a result we are now debt free and are
in a strong financial position to pursue internal and external
growth initiatives." FINANCIAL RESULTS Third Quarter 2009 Earnings
of $8.2 million, or $0.05 per share, were achieved in the third
quarter of 2009, compared to earnings of $7.1 million, or $0.05 per
share, in the same period of 2008. Results were positively impacted
by non-cash derivative gains of $0.6 million on an after tax basis.
After adjusting for this item, earnings for the quarter were $7.7
million, or $0.05 per share, compared to adjusted earnings in the
third quarter of 2008 of $4.3 million or $0.03 per share. In 2008,
operating results were positively impacted by non-cash derivative
gains of $2.8 million, on an after tax basis. Revenue from Casa
Berardi operations increased to $44.2 million in the third quarter
of 2009 from the sale of 43,650 ounces of gold, compared to $35.5
million from the sale of 40,228 ounces of gold in the same quarter
of 2008, as a result of more gold ounces sold, a weaker Canadian
dollar and higher realized gold prices. The average realized gold
price was US$929 per ounce and the average Cad/US exchange rate was
1.084, compared to realized prices of US$845 per ounce at an
average exchange rate of 1.04 in the same quarter of 2008. The 2009
average realized gold price includes the sale of 20,026 ounces of
gold at an average price of US$886 per ounce from the exercise of
call options, compared to 11,525 ounces of gold sold at an average
price of US$832 per ounce from the exercise of call options in the
third quarter of 2008. Actual gold production in the quarter was
43,962 ounces, compared to 41,522 ounces in the same quarter of
2008. Operating costs in the third quarter of 2009 totalled $19.0
million, while depletion, depreciation and accretion ("DD&A")
totalled $10.1 million. On a unit cost basis, total cash costs per
ounce of gold sold were US$392(1) and DD&A was US$212 per
ounce, for a total production cost of US$604 per ounce. In the
third quarter of 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 by 25% the Company's
ounces that are subject to call options in 2010 and raises the
average call price in 2010 from US$908 per ounce to US$923 per
ounce. The cost of the purchase, totalling $2.6 million, has been
reflected on the balance sheet as a derivative instrument asset and
changes in the fair value of the call options are reflected in
earnings. In the third quarter of 2009, a stronger Canadian dollar;
the expiry of gold call options and foreign exchange contracts; and
the purchase of call options to allow the participation in higher
gold prices, partially mitigated by rising gold prices; resulted in
a non-cash derivative gain of $0.7 million. Including the fair
value of the gold call options purchased, the net unrealized
derivative liabilities at September 30, 2009, totalled $9.1 million
compared to net unrealized derivative liabilities of $25.4 million
at December 31, 2008. In the same quarter of 2008, the non-cash
gain was $3.5 million. There are no margin requirements with
respect to these derivative positions. Administrative and general
costs in the third quarter of 2009 were higher than the same period
of 2008 at $2.3 million, compared to $1.9 million. Excluding
non-cash stock based compensation charges, general and
administrative costs were $1.7 million in 2009 compared to $1.5
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 third
quarter of 2009, compared to $3.1 million in the same period of
2008. Income and resource taxes totalled $4.7 million, of which
$2.1 million are current Quebec mining taxes and $2.6 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 gains totalling
$0.4 million were realized in the third quarter of 2009, compared
to a gain of $0.8 million in the same quarter of 2008. The primary
cause for the exchange gains in the third quarter of 2009 was the
delivery of US$15.0 million dollars into foreign exchange contracts
at rates more favourable than the prevailing market rates. Cash
flow from operating activities increased 24% to $17.6 million in
the third quarter of 2009, compared to cash flow of $14.2 million
in the same period of 2008. A weaker Canadian dollar and higher
realized US dollar gold prices resulted in a 14% increase in
realized Canadian dollar gold prices and a wider operating profit
margin in the third quarter of 2009, compared to the same period
last year. Capital expenditures totalled $8.3 million in the third
quarter, of which $4.0 million was on sustaining capital and $4.3
million was on exploration activity at Casa Berardi. A decision to
repay the project debt in full in the third quarter resulted in the
release of restricted cash of $30.2 million which had been
maintained in accordance with the terms of the debt facility. The
Company received $3.3 million of Quebec refundable mining credits
during the third quarter of 2009. Aggregate investing activities
resulted in cash inflows of $22.6 million during the third quarter
of 2009, compared to outflows of $6.1 million in the same period of
2008. The project debt totalling $21.0 million was repaid in full
on September 30, 2009. The exercise of incentive stock options
provided $0.4 million, resulting in a net cash outflow of $20.6
million from financing activities during the third quarter of 2009.
In the same period of 2008, financing activities resulted in net
cash outflows of $12.8 million.
--------------------------------------- (1) See "Non-GAAP measures"
on page 6. Nine Months 2009 Earnings for the nine months ended
September 30, 2009, were $26.8 million or $0.17 per share, compared
to earnings of $9.0 million or $0.06 per share in the same period
of 2008. Results were impacted by non-cash derivative gains of
$10.1 million on an after tax basis. After adjusting for this item,
earnings for the first nine months were $16.8 million, or $0.11 per
share, compared to adjusted earnings in the same period of 2008 of
$9.6 million or $0.07 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 nine months of
2009 totalled $59.8 million, compared to cash flow of $48.7 million
for the same period of 2008. Operating profit margin per ounce
increased 13% to US$521(2) per ounce for the nine months ended
September 30, 2009, compared to US$462 per ounce in the same period
of 2008. Investing activities in the first nine months of 2009
resulted in a net cash outflow of $7.1 million, of which $29.0
million was incurred on capital and exploration expenditures, $2.6
million spent purchasing gold call options, whilst cash inflows
were generated from the release of the restricted cash balances
totalling $21.2 million and $3.3 million from refundable mining
credits. In the same period of 2008, investing activities resulted
in a net cash outflow of $21.1 million of which $19.1 million was
incurred on capital expenditures, $3.7 million was transferred to
restricted cash accounts, and $1.6 million was received from
refundable mining credits. Financing activities during the first
nine months of 2009 resulted in a net cash inflow of $20.9 million
due to the $47.3 million public equity financing and $3.4 million
from the exercise of incentive stock options, reduced by principal
debt repayments of $29.2 million 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 $37.4
million due to principal debt repayments of $39.9 million, reduced
by the exercise of incentive stock options totalling $2.5 million.
CASH RESOURCES AND LIQUIDITY As at September 30, 2009, cash
balances increased to $108 million, compared to $55.6 million at
the beginning of the year. Included in the December 31, 2008 cash
balances are restricted cash amounts in respect of the Casa Berardi
debt facility totalling $21.2 million. In order to release the
restricted cash balances and eliminate further annual
administrative fees associated with the project debt, the Company
decided to repay the project debt in full in September 2009 in
advance of the final scheduled payment in March 2010. The final
principal payment of $21 million was made in September thereby
allowing the release of $28 million to the Company's general
account in the third quarter. Aurizon had working capital of $95.4
million as at September 30, 2009, compared to $24.1 million at the
end of 2008. Reflected in working capital are net derivative
liabilities totalling $9.1 million compared to $13.3 million at the
end of 2008. Long-term debt related to refundable government
assistance and capital leases totalled $0.7 million at September
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. --------------------------------------- (2) See "Non-GAAP
measures" on page 6. CASA BERARDI Casa Berardi produced 43,962
ounces of gold in the third quarter of 2009, and 43,650 ounces were
sold at an average price US$929 per ounce. Since commissioning the
mill in November 2006, Casa Berardi has produced 458,832 ounces of
gold.
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Operations 2009
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YTD Q3 Q2 Q1
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Operating results Tonnes milled 516,333 178,420 170,429 167,484
Grade - grams/tonne 7.97 8.14 7.84 7.93 Mill recoveries - % 92.8%
94.2% 92.8% 91.3%
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Gold Production - ounces 122,802 43,962 39,874 38,966
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Gold sold - ounces 123,092 43,650 42,042 37,400
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Per ounce data - US$ Average realized gold price $906 $929 $897
$888 --------------------------------------- Total cash costs(1)
$385 $392 $386 $379 Amortization(2) 194 212 189 183
--------------------------------------- Total production costs(3)
$579 $604 $575 $562
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Operations 2008
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Q4 Q3 Q2 Q1
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Operating results Tonnes milled 169,291 161,358 160,054 163,694
Grade - grams/tonne 7.70 8.58 7.73 8.63 Mill recoveries - % 91.5%
93.3% 92.7% 92.6%
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Gold Production - ounces 38,363 41,522 36,871 42,074
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Gold sold - ounces 38,348 40,228 41,217 39,611
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Per ounce data - US$ Average realized gold price $793 $845 $869
$877 --------------------------------------- Total cash costs(1)
$356 $405 $436 $422 Amortization(2) 226 211 210 191
--------------------------------------- Total production costs(3)
$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 third quarter of 2009 increased
to 178,420 tonnes from 161,358 tonnes in the same period of 2008 as
a stable daily production rate of 1,939 tonnes per day was
achieved. An average ore grade of 8.1 grams/tonne was achieved in
the third quarter of 2009, in line with plan. Mill recoveries
averaged 94.2% in the third quarter of 2009. This compares to ore
grades of 8.6 grams/tonne and mill recoveries of 93.3% in the third
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$392 per ounce in the third quarter of 2009, in line with
plan, compared to US$405 per ounce in the third quarter of 2008. A
slightly weaker Canadian dollar in the third 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 third
quarter of 2009 were $103 per tonne, similar to the same quarter of
2008 costs of $101 per tonne. Operating profit margin per ounce
increased 22% to US$537 per ounce from US$440 per ounce in the same
quarter of 2008. Casa Berardi Exploration An aggressive exploration
program is in progress at Casa Berardi, following completion of the
exploration drift at the 810 metre level, east of Zone 113 and
south of the Casa Berardi fault. Drilling is in progress to test
the depth extension of Zone 113, the continuity and extension of
zones previously discovered by surface drilling in the Principal
Zone area, the west extension of the Lower Inter Zone, and along
the dip extension of the East Mine with the objective of
delineating mineral resources. Ten surface and underground drill
rigs are currently active on site. Recent drilling from the 280
metre level drift has targeted two parallel zones, 124-1 and 124-2,
approximately 20 to 30 metres apart, that have over 100 metres of
strike length between a depth of 100 metres and 350 metres. The
drill results indicate high grade trends within the zones, with
intersections such as 59.4 grams of gold per tonne over 7.0 metres
in Zone 124-1, and 16.2 grams of gold per tonne over 4.2 metres in
Zone 124-2. In addition, recent drilling from the new 810 metre
level drift has returned high grade intersections such as 16.8
grams of gold per tonne over 5.3 metres and 18.9 grams of gold per
tonne over 4.0 metres in Zone 120, located 650 metres east of the
current production shaft. For the remainder of 2009, $5.0 million
will be invested at Casa Berardi for exploration activities,
including $ 2.2 million on underground development and
infrastructure. 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. A winter program comprising
17,000 metres of drilling to test the aforementioned targets and to
optimise the mineral resources in the Hosco block has been
initiated. Two drill rigs are currently active and a third rig is
expected to be added before year end. The pre-feasibility study on
the Hosco block is nearing completion and is subject to review by
management. The study will incorporate the measured and indicated
resources of approximately 1.27 million ounces of gold, together
with the results of recently completed metallurgical tests. The
study will also be completed in accordance with the Company's
global development principles supporting technical, economic,
environmental and social considerations. During the quarter,
various informational meetings were held with all stakeholder
groups in order to listen and understand their views. The feedback
was positive and recommendations have been incorporated into the
pre-feasibility study, results of which will be released shortly.
Kipawa Gold Property A program of soil sampling in areas of
interest contiguous to gold showings identified in 2008 was
completed in order to extend the known gold structures, and better
define gold targets. Upon analysis and evaluation of the results of
this program, a winter drill program may be initiated. OUTLOOK
Based upon the first nine month results and the mine plan for the
fourth quarter, Casa Berardi remains on target to produce at the
upper range of the 150,000 to 155,000 ounces of gold forecast at
the beginning of the year. The continued strength of the Canadian
dollar and expected sequencing of lower ore grades in the fourth
quarter has resulted in a revision to the forecast total cash costs
of US$414 per ounce for the full year, assuming a Cad$/US$ exchange
rate of 1.05 in the fourth quarter 2009. Previous guidance for 2009
was US$405 per ounce assuming a Cad$/US$ exchange rate of 1.10 for
the second half of 2009. Sustaining capital costs at Casa Berardi
for the remainder of 2009 are estimated to total $4.1 million,
including $3.6 million for the development of the upper and lower
portions of the 113 Zone and of the Lower Inter Zone and $0.5
million on property, plant and mine equipment improvements. In
addition, a further $5.0 million will be spent on exploration. The
Company is in a strong financial position at September 30, 2009,
with cash balances of $108 million, working capital of $95.4
million, and no bank debt. The outlook for gold remains positive
which should provide strong profit margins and operating cash flows
from Casa Berardi and 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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3rd 3rd Nine Nine Quarter Quarter Months Months 2009 2008 2009 2008
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(in thousands of Canadian dollars, except per share amounts)
Earnings as reported $8,211 $7,108 $26,844 $8,975 Add (deduct) the
after-tax effect of: Unrealized (gain) loss on derivative
instruments (560) (2,778) (10,065) 3,858 Recovery of defense costs
- - - (3,220)
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Adjusted earnings $7,651 $4,330 $16,779 $9,613
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Adjusted earnings per share $0.05 $0.03 $0.11 $0.07
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b) Total Cash Costs per Gold Ounce Aurizon has included a non-GAAP
performance measure of total cash costs per ounce of gold in this
report. Aurizon reports total cash costs on a sales basis. In the
gold mining industry, this is a common performance measure, but
does not have any standardized meaning, and is a non-GAAP measure.
The Company believes that, in addition to conventional measures,
prepared in accordance with GAAP, certain investors use this
information to evaluate the Company's performance and ability to
generate cash flow. Accordingly, it is intended to provide
additional information and should not be considered in isolation or
as a substitute for measures of performance prepared in accordance
with GAAP. Total cash costs per gold ounce are derived from amounts
included in the statements of earnings and include mine site
operating costs such as mining, processing and administration, but
exclude amortization, reclamation costs, financing costs and
capital development costs. These costs are reduced by silver
by-product sales and then divided by gold ounces sold and the
average Bank of Canada Cad$/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 September 30, 2009, the average realized gold
price was US$929 less total cash costs of US$392 for a operating
profit margin of US$537 per ounce, compared to an average realized
gold price of US$845 less total cash costs of US$405 for a
operating profit margin of US$440 per ounce for the third quarter
of 2008. For the nine months ended September 30, 2009, the average
realized gold price was US$906 less total cash costs of US$385 for
a operating profit margin of US$521 per ounce, compared to an
average realized gold price of US$880 less total cash costs of
US$418 for a operating profit margin of US$462 per ounce for the
same period of 2008. Outstanding Share Data As of November 2, 2009,
Aurizon had 158,978,482 common shares issued and outstanding. In
addition, 7,979,225 incentive stock options, representing 5% of
outstanding share capital, are outstanding and exercisable into
common shares at an average price of $3.75 per share. Common Shares
(TSX - ARZ & NYSE Amex - AZK)
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September 30, December 31, 2009 2008
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Issued 158,937,732 148,068,298 Fully-diluted 166,757,707
156,586,548 Weighted average 158,862,732 147,707,642
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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 Thursday, November 5, 2009 at
11:00 a.m. Pacific Standard Time (2:00 p.m. Eastern Standard Time)
to review the results. You may access the call by calling the
operator at 416-644-3418 or toll free access at 1-800-587-1893 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=2847020.
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 4173202 followed by the number sign). This playback
version of the call will be available until Thursday, November 12,
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 September
December (in thousands of Canadian dollars) 30 2009 31 2008
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$ $ ASSETS CURRENT Cash and cash equivalents 108,005 34,337
Restricted cash - 21,225 Accounts receivable and prepaid expenses
4,755 4,419 Refundable tax credits and mining duties 2,003 5,301
Derivative instrument assets 3,666 412 Inventories 10,130 10,145
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128,559 75,839 Derivative instrument assets - 1,420 Other assets
2,025 1,553 Property, plant & equipment 54,940 54,761 Mineral
properties 125,545 124,378
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TOTAL ASSETS 311,069 257,951
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LIABILITIES CURRENT Accounts payable and accrued liabilities 16,743
15,067 Derivative instrument liabilities 12,757 13,727 Current
portion of long-term debt 658 21,663 Current provincial mining
taxes payable 3,048 1,302
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33,206 51,759 Derivative instrument liabilities - 13,474 Long-term
debt 700 9,430 Asset retirement obligations 21,733 20,905 Future
income tax liabilities 30,659 17,442
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TOTAL LIABILITIES 86,298 113,010
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SHAREHOLDERS' EQUITY Share capital 247,048 194,647 Contributed
surplus 979 872 Stock based compensation 9,491 9,013 Deficit
(32,747) (59,591)
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TOTAL SHAREHOLDERS' EQUITY 224,771 144,941
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 311,069 257,951
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Aurizon Mines Ltd. Statements of Earnings and Comprehensive Income
(unaudited) Three months ended Nine months ended September 30
September 30 (in thousands, except per share amounts, of Canadian
dollars) 2009 2008 2009 2008
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$ $ $ $ REVENUE Mining operations 44,167 35,502 129,957 106,935
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EXPENSES Operating 18,989 17,025 55,739 52,015 Depreciation,
depletion and accretion 10,147 8,835 27,940 25,045 Administrative
and general 2,250 1,866 7,665 7,656 Exploration costs 729 3,133
2,699 8,401 Unrealized derivative (gains) losses (715) (3,451)
(13,658) 4,792 Interest on long-term debt 159 568 542 2,333 Foreign
exchange (gain) loss (427) (789) 2,388 (1,887) Capital taxes 270
136 668 262 Other income (151) (501) (605) (5,803)
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31,251 26,822 83,378 92,814
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Earnings for the period before income taxes 12,916 8,680 46,579
14,121 Current provincial mining taxes (2,101) (339) (6,518) (836)
Future income tax recovery (expense) relating to provincial mining
taxes 189 175 (963) (1,767) Future income tax expense (2,793)
(1,408) (12,254) (2,543)
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Earnings and comprehensive income for the period 8,211 7,108 26,844
8,975
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Earnings per share - basic and diluted 0.05 0.05 0.17 0.06
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Weighted average number of common shares outstanding (thousands)
158,863 147,986 155,358 147,604
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Aurizon Mines Ltd. Statements of Deficit (unaudited) Three months
ended Nine months ended September 30 September 30 (in thousands of
Canadian dollars) 2009 2008 2009 2008
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$ $ $ $ Deficit - Beginning of period as previously reported
(40,958) (62,645) (59,591) (69,006) Retrospective adoption of new
accounting standard - - - 4,494
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Deficit - as adjusted (40,958) (62,645) (59,591) (64,512) Earnings
for the period 8,211 7,108 26,844 8,975
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Deficit - end of period (32,747) (55,537) (32,747) (55,537)
-------------------------------------------------------------------------
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Aurizon Mines Ltd. Statements of Cash Flow (unaudited) Three months
ended Nine months ended September 30 September 30 (in thousands of
Canadian dollars) 2009 2008 2009 2008
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$ $ $ $ CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES Earnings
for the period 8,211 7,108 26,844 8,975 Adjustments for non-cash
items: Depreciation, depletion, and accretion 10,147 8,835 27,940
25,045 Refundable tax credits (127) (554) (472) (1,469) Loss (gain)
on sale of property, plant and equipment - - 34 (11) Stock based
compensation 516 401 2,081 2,295 Unrealized non-hedge derivative
(gains) losses (715) (3,451) (13,658) 4,792 Future income tax
expense (recovery) relating to mining duties (189) (175) 963 1,767
Future income tax expense 2,793 1,408 12,254 2,543
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20,636 13,572 55,986 43,937 Decrease (increase) in non-cash working
capital items (3,069) 605 3,854 4,767
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17,567 14,177 59,840 48,704
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CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES Property, plant and
equipment (1,751) (1,849) (9,473) (5,137) Mineral properties
(6,571) (6,842) (19,489) (13,952) Restricted cash proceeds
(funding) 30,208 450 21,225 (3,692) Refundable tax credits 3,298
2,175 3,298 1,640 Derivative instruments (2,620) - (2,620) -
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22,564 (6,066) (7,059) (21,141)
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CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES Issuance of shares,
net of costs 358 149 50,705 2,481 Long-term debt (20,951) (12,985)
(29,818) (39,866)
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(20,593) (12,836) 20,887 (37,385)
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INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 19,538 (4,725)
73,668 (9,822) CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD
88,467 19,739 34,337 24,836
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CASH AND CASH EQUIVALENTS - END OF PERIOD 108,005 15,014 108,005
15,014
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DATASOURCE: Aurizon Mines Ltd. CONTACT: AURIZON MINES LTD., Suite
3120, 666 Burrard Street, Park Place, Vancouver, British Columbia,
V6C 2X8, David P. Hall, President, or Ian S. Walton, Chief
Financial Officer, at 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: ; Maurice Dagenais: ; Media: Valerie Lacasse:
, Tel: (514) 939-3989, Fax: (514) 939-3717
Copyright