Shares Listed: Toronto Stock Exchange - Ticker Symbol - ARZ
NYSE Amex: - Ticker Symbol - AZK
U.S. Registration: (File 001-31893)
News Release Issue # 7 - 2011
VANCOUVER,
March 16 /PRNewswire-FirstCall/ -
Aurizon Mines Ltd. (TSX: ARZ; NYSE Amex: AZK) is pleased to
announce its financial results for the year ended December 31, 2010. All dollar amounts are in
Canadian dollars unless otherwise stated.
HIGHLIGHTS
Fourth Quarter highlights
- Cash flow from operations of $17.4
million.
- Gold production of 37,496 ounces.
- Net earnings of $6.2 million, or
$0.04 per share.
- Total cash costs of US$531 per
ounce(1).
2010 Annual Financial Highlights
- Record revenues of $179
million.
- Net earnings of $16 million, or
$0.10 per share, and adjusted net
earnings of $10
million(1), or $0.06 per share were impacted by a significant
increase in exploration and feasibility activities.
- Cash flow from operating activities of $50.2 million, 30% lower than 2009, impacted by
lower earnings and increases in non-cash working capital items.
- Operating profit margin per ounce increased 18% to US$604, due to higher realized gold
prices.(1)
- Working capital of $149 million,
including $139 million cash, and no
debt.
- No remaining gold derivative hedges.
2010 Annual Operational Highlights
- Gold production of 141,116 ounces compared to 159,261 ounces in
2009, primarily due to anticipated sequencing of lower grade
ore.
- Ore throughput increased 5% to 722,745 tonnes compared to
2009.
- Total cash costs of US$541 per
ounce, 35% higher than 2009, due to lower ore grades, lower mill
recoveries, and a stronger Canadian dollar.
- Casa Berardi mine life extended from six years to ten
years.
- An increase of 44% in Casa Berardi mineral reserves to
1,457,000 ounces of gold.
- Joanna mineral resources in the area of the Hosco pit increased
by 35%.
(1) See non-GAAP measures on pages 4 and 5.
"2010 was both challenging and exciting for
Aurizon." said David Hall, President
and Chief Executive Officer. "Challenging, as we worked our way
through a low grade area of the Casa Berardi mine with a
short-term, adverse impact on operating and financial performance.
Exciting, as we had exploration success at both Casa Berardi and
Joanna, and also in optioning six new properties, increasing our
property portfolio to ten. Aurizon exited the year with strong
fundamentals firmly in place. With our strong production base and
increased exploration on various fronts, we are well positioned to
benefit from strong long-term gold prices, and to continue to build
value for our shareholders."
FINANCIAL RESULTS
Financial review of the fourth quarter
2010
Net earnings of $6.2
million, or $0.04 per share,
were achieved in the fourth quarter of 2010, compared to net
earnings of $9.9 million, or
$0.06 per share in the same period of
2009. The comparative fourth quarter results in 2009 were
positively impacted by the recognition of $4.5 million of non-refundable tax credits.
Fourth quarter 2010 results were impacted by a significant increase
in exploration activities resulting in $5.4
million being charged to earnings compared to $1.1 million in 2009. In addition, non-cash
stock based compensation charges totalling $3.2 million impacted results compared to
$0.8 million of charges in 2009.
Operating profit margins increased dramatically
in the fourth quarter of 2010 to US$845 per ounce from US$487 per ounce in the same period of 2009 as
the Company benefited from the combination of higher realized gold
prices and the elimination of gold delivery into call options at
below market prices. Fourth quarter 2010 total cash costs dropped
to US$531 per ounce from the third
quarter costs of US$604 per ounce as
a result of improved ore grades. Daily ore throughput of
2,084 tonnes per day was achieved in the fourth quarter of 2010,
allowing unit operating costs on a Canadian dollar basis to drop to
$106 per tonne compared to
$108 per tonne for the full
year.
Adjusted net earnings for the fourth quarter
were $6.3 million, or $0.04 per share compared to adjusted net earnings
of $13.8 million, or $0.09 cents per share, in the same quarter of
2009. In the fourth quarter of 2009, earnings were negatively
impacted by non-cash derivative losses of $3.9 million on an after tax basis.
Cash flow from operating activities in the
fourth quarter of 2010 increased 45% to $17.4 million, compared to $12.0 million in 2009. The Company's aggregate
operating, investing and financing activities during the fourth
quarter of 2010 resulted in net cash inflows of $8.4 million.
Financial review of the year ended
December 31, 2010
Net earnings in 2010 totalled $16.1 million, or $0.10 per share, compared to net earnings of
$36.7 million, or $0.23 per share in 2009. Results were
impacted by a significant increase in exploration activities at
Aurizon's newly optioned properties, together with continued
exploration and feasibility work at Joanna, resulting in
$15.6 million being charged to
earnings compared to $3.8 million in
2009. In addition, non-cash stock based compensation charges
totalling $8.0 million impacted
results compared to $2.9 million of
charges in 2009. Operating profit margins increased in 2010
as higher realized gold prices mitigated higher cash operating
costs resulting from the anticipated sequencing of lower than
average ore grades and general inflationary pressures.
After removing the positive impact of non-cash
derivative gains of $6.0 million on
an after tax basis, adjusted net earnings were $10.1 million or $0.06 per share in 2010, compared to adjusted net
earnings of $32.9 million, or
$0.21 per share in 2009.
Cash flows from operating activities in 2010
totalled $50.2 million compared to
cash flows of $71.8 million in
2009. Cash flow was adversely impacted by lower earnings and
increases in non-cash working capital items. An 18% increase
in operating profit margins to US$604
per ounce from US$514 per ounce in
2009 was partially offset by a 12% decrease in ounces of gold sold
in 2010 compared to the prior year.
(1) See "Non-GAAP measures" on pages 4 and 5.
Revenues from Casa Berardi operations rose to
$178.7 million in 2010 from the sale
of 139,950 ounces of gold, compared to $175.6 million from the sale of 159,275 ounces of
gold in 2009. Net of realized derivative losses, revenues
were $165.1 million compared to
$165.8 million in 2009 as lower gold
sales and a stronger Canadian dollar were almost offset by 25%
higher realized U.S. dollar gold prices. After adjusting for
the impact of net derivative losses, the average realized gold
price was US$1,145 per ounce and the
average Cad/US exchange rate was 1.03, compared to realized prices
of US$915 per ounce and an exchange
rate of 1.14 in 2009. The gold average London afternoon fixing in 2010 was
US$1,225 per ounce.
As at December 31,
2010, the Company has no remaining gold hedges.
However, in 2006, as a condition of establishing a $75 million debt facility for the development of
Casa Berardi, the Company was required to establish gold derivative
contracts. As a result, during 2010, 65,814 ounces of gold,
representing 47% of gold sales, were delivered against gold call
options at an average price of US$908
per ounce, 26% lower than the average London fixing. Partially offsetting this
opportunity cost, the Company exercised 16,614 ounces of gold call
options at US$863 per ounce that were
purchased in 2009 and then sold the gold at an average price of
US$1,178 per ounce.
Balance Sheet
As at December 31,
2010, cash and cash equivalents increased to $139.3 million, compared to $113.1 million in 2009. At the end of 2010,
Aurizon had working capital of $149.2
million compared to $101.7
million at the end of 2009. The increase in cash and
working capital was primarily attributable to cash flows generated
from Casa Berardi's mining operations.
Aurizon continued to have no debt as at
December 31, 2010.
As at the date of this report, Aurizon had
162,256,702 common shares issued and outstanding. In
addition, 9.6 million incentive stock options are outstanding that
are exercisable into common shares at an average price of
$5.05 per share.
Operating review of the year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of Key Operational Statistics |
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
2010 |
|
2009 |
|
2008 |
|
2007 |
Operating results |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tonnes milled |
|
178,648 |
|
182,487 |
|
169,913 |
|
191,697 |
|
722,745 |
|
688,676 |
|
654,397 |
|
545,258 |
Grade - grams/tonne |
|
6.79 |
|
7.20 |
|
6.15 |
|
6.86 |
|
6.75 |
|
7.77 |
|
8.16 |
|
9.78 |
Mill recoveries - % |
|
90.2% |
|
91.2% |
|
89.1% |
|
88.6% |
|
89.8% |
|
92.6% |
|
92.5% |
|
93.0% |
Gold Production - ozs |
|
35,188 |
|
38,527 |
|
29,905 |
|
37,496 |
|
141,116 |
|
159,261 |
|
158,830 |
|
159,469 |
Gold sold - ozs |
|
34,423 |
|
39,964 |
|
30,755 |
|
34,808 |
|
139,950 |
|
159,275 |
|
159,404 |
|
160,600 |
Per ounce data - US$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average realized gold price1 |
|
$1,010 |
|
$1,082 |
|
$1,119 |
|
$1,376 |
|
$1,145 |
|
$915 |
|
$847 |
|
$696 |
Total cash costs 2 |
|
$538 |
|
$504 |
|
$604 |
|
$531 |
|
$541 |
|
$401 |
|
$399 |
|
$331 |
Amortization 3 |
|
$228 |
|
$240 |
|
$254 |
|
$263 |
|
$245 |
|
$201 |
|
$209 |
|
$172 |
Total production costs 4 |
|
$766 |
|
$744 |
|
$858 |
|
$794 |
|
$786 |
|
$602 |
|
$608 |
|
$503 |
Table footnotes: (See "NON-GAAP MEASURES")
1 Realized gold prices net of derivative gains
or losses divided by ounces sold.
2 Operating costs net of by-product credits,
divided by ounces sold, and divided by average Bank of Canada
Cad$/US$ rate.
3 Depreciation, amortization and accretion
expenses.
4 Total cash costs plus depreciation,
amortization and accretion expenses.
Casa Berardi performed in line with expectations
in 2010 despite a revised mine plan resulting from challenging
ground conditions in a localized area of Zone 113 and reduced
availability of underground mining equipment. Gold production
was approximately 6% lower than plan and unit operating costs were
4% higher than plan. Gold production for the year totalled 141,116
ounces, 11% lower than the 159,261 ounces produced in 2009 as a
result of the anticipated sequencing of lower grade ore in
2010. The average ore grade of 6.75 grams per tonne achieved
in 2010 matched expectations. Increased daily ore throughput
of 1,980 tonnes per day in 2010 compared to 1,887 tonnes per day in
2009 was offset by lower ore grades and mill recoveries, resulting
in the decrease in gold production in 2010.
Total cash costs(1) in 2010 were
US$541 per ounce, 10% higher than
plan and compared to the US$401 per
ounce costs in 2009, as lower ore grades, lower mill recoveries,
and a strong Canadian dollar impacted costs. Unit operating
costs(1) in 2010 were stable on a Canadian dollar basis
at $108 per tonne, matching the prior
year's costs as higher ore throughput offset higher mining costs
resulting from additional ground support and lower productivity
from mining equipment. Operating profit margins increased by
18% to US$604 per ounce from
US$514 per ounce in 2009, due to
higher realized gold prices.
NON-GAAP MEASURES
a) Calculation of Adjusted Net Earnings
Adjusted net 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, as detailed in the table
below. Adjusted net 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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|
|
|
|
|
Q4 2010 |
|
Q4 2009 |
|
2010 |
|
2009 |
(in thousands of Canadian dollars, except per
share amounts) |
|
|
|
|
|
|
|
|
Net earnings as reported |
|
$6,205 |
|
$9,862 |
|
$16,133 |
|
$36,706 |
Add (deduct) the after-tax effect of: |
|
|
|
|
|
|
|
|
Derivative (gain) loss |
|
73 |
|
3,937 |
|
(6,036) |
|
(3,830) |
Adjusted net earnings |
|
$6,278 |
|
$13,799 |
|
$10,097 |
|
$32,876 |
Adjusted net earnings per share (basic and
diluted) |
|
$0.04 |
|
$0.09 |
|
$0.06 |
|
$0.21 |
b) Realized gold price per ounce of
gold
Realized gold price per ounce of gold is a
non-GAAP measure and is calculated by adjusting revenue for all
gains and losses on gold derivative instruments and silver
by-product sales and then dividing that by the gold ounces sold and
the average Bank of Canada Cad$/US$ exchange rate. For 2010,
gold derivative losses were $13.0
million and silver sales totalled $0.6 million compared to gold derivative losses
of $9.2 million and silver sales
totalling $0.5 million in 2009.
(1) See non-GAAP measures on pages 4 and 5.
c) Total cash costs per ounce of gold
Aurizon has included a non-GAAP performance
measure, total cash costs per ounce of gold in this report.
Aurizon reports total cash costs on a sales basis. In the
gold mining industry, this is a common performance measure but does
not have any standardized meaning, and is a non-GAAP measure.
The Company believes that, in addition to conventional measures
prepared in accordance with GAAP, certain investors use this
information to evaluate the Company's performance and ability to
generate cash flow. Accordingly, it is intended to provide
additional information and should not be considered in isolation or
as a substitute for measures of performance prepared in accordance
with GAAP. Total cash costs per gold ounce are derived from
amounts included in the statements of earnings and include mine
site operating costs such as mining, processing and administration,
but exclude amortization, reclamation costs, financing costs and
capital development costs. The costs included in the
calculation of total cash costs per ounce of gold are reduced by
silver by-product sales and then divided by gold ounces sold and
the average Bank of Canada Cad$/US$ exchange rate.
d) 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 are calculated by adjusting operating costs
as shown in the Statements of Earnings for inventory adjustments
and then dividing that by the tonnes processed through the
mill. For 2010, operating costs were increased by inventory
adjustments of $0.4 million compared
to an operating cost decrease of $1.1
million in 2009 resulting from inventory adjustments.
e) Operating profit margin per ounce
Operating profit margin per ounce is a non-GAAP
measure, and is calculated by subtracting the total cash costs per
ounce from the average realized gold price. For 2010, the
average realized gold price was US$1,145 less total cash costs of US$541 for an operating profit margin of
US$604, compared to an average
realized gold price of US$915 less
total cash costs of US$401 for an
operating profit margin of US$514 in
2009.
For the fourth quarter ended December 31, 2010, the average realized gold
price was US$1,376 less total cash
costs of US$531 for an operating
profit margin of US$845 compared to
an average realized gold price of US$946 less total cash costs of $459 for an operating profit margin of
US$487 in 2009.
OUTLOOK
With cash balances of $139 million and no debt as at December 31, 2010, Aurizon intends to utilize its
strong operating cash flows and balance sheet to continue upgrading
its mineral resources to mineral reserves at both Casa Berardi and
Joanna and to aggressively explore its new portfolio of exploration
properties in Quebec.
It is estimated that Casa Berardi will produce
between 165,000 to 170,000 ounces of gold in 2011 at an average
grade of 8.0 grams of gold per tonne. Average daily ore
throughput is estimated at 1,965 tonnes per day, similar to
2010. The increase in gold production for 2011 is
attributable to the average gold grades returning to the average
underground reserve grade of the mine following a year of mine
sequencing lower grade ore. Approximately 44% of production
will come from Zone 113, 39% from the Lower Inter Zone, and the
residual 17% from smaller zones and development material.
Assuming a Canadian/U.S. dollar exchange rate at
parity, total cash costs per ounce for the year are anticipated to
approximate US$495 per ounce in
2011. Onsite mining, milling and administration costs are
expected to average $117 per tonne,
up 8% from the 2010 costs as a result of reduced development ore,
smaller stopes, and longer haulage distances.
Capital expenditures at Casa Berardi are
estimated to total $51.1 million in
2011, of which approximately 50% comprises expenditures that will
allow access to the lower portion of Zone 113 as well as the
recently discovered gold mineralization at depth in Zones 118 and
123, east of the West mine production shaft.
An additional $13.4
million will be invested on exploration at Casa Berardi in
2011 which will include approximately 115,000 metres of surface and
underground diamond drilling. Up to 4 surface and 8
underground drill rigs will be active during the course of
2011. The Company expects to capitalize these costs as the
primary objective of the drilling will be to improve the quality of
the known reserves and resources as well exploring for extensions
of these structures.
Feasibility study work on the Hosco open pit
deposit will continue in 2011 with completion of the study
anticipated by during the third quarter 2011. Results from
the step out drill program, performed in 2010, in the area of the
Hosco pit will be incorporated into an updated mineral resource
estimate and block model for inclusion in the study.
The evaluation and optimization of alternate
metallurgical processes to treat the Hosco ore will continue
through the first quarter of 2011. A detailed evaluation of
the use of an autoclave is being conducted while continuing to
optimize the Albion technology to improve recoveries and reduce
reagents consumption. Concurrently, detailed engineering, pit
optimization, and environmental impact studies are underway.
The Company has budgeted $5.4 million
for these activities in 2011 and expects the majority of these
costs to be expensed.
In addition, an initial $3.7 million exploration program, comprising
26,000 metres of surface drilling, will concentrate on the
Heva deposit, approximately 3 kilometres west of the proposed Hosco
pit. The objective of the 2011 drill campaign is to perform
step-out drilling on 50 metre spacing along the 2.5 kilometre
strike length of the Heva deposit and potential satellite zones,
down to 150 metres, in order to extend the mineral resources
contour and to increase the quality of the existing indicated and
inferred mineral resources. Two to three drill rigs will be
active during the first five months of 2011.
Aggressive exploration programs are also planned
at the Company's other Quebec
properties totalling $21.2 million
(before tax credits) during 2011.
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 2011, 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 www.sedar.com and on
Edgar at 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 favourable mining
jurisdictions and 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 www.aurizon.com. |
Aurizon Mines Ltd.
Balance Sheets (Unaudited)
As at December 31, |
|
(expressed in thousands of Canadian
Dollars) |
|
2010 |
2009 |
ASSETS |
|
|
|
Current
assets |
|
|
|
|
Cash and cash equivalents |
|
$ 139,341 |
$ 113,098 |
|
Marketable securities |
|
1,129 |
- |
|
Accounts receivable and prepaid
expenses |
|
7,258 |
4,825 |
|
Tax credits |
|
12,398 |
2,587 |
|
Derivative instrument assets |
|
- |
5,274 |
|
Inventories |
|
12,085 |
11,897 |
|
|
|
172,211 |
137,681 |
Non-current assets |
|
|
|
|
Other assets |
|
8,100 |
14,551 |
|
Property, plant and equipment |
|
40,841 |
53,691 |
|
Mineral properties |
|
119,534 |
117,370 |
TOTAL ASSETS |
|
$ 340,686 |
$ 323,293 |
LIABILITIES |
|
|
|
Current liabilities |
|
|
|
|
Accounts payable and accrued
liabilities |
|
$ 18,904 |
$ 16,451 |
|
Derivative instrument
liabilities |
|
- |
13,885 |
|
Current portion of long-term
obligations |
|
756 |
652 |
|
Current provincial resource taxes
payable |
|
- |
3,752 |
|
Current portion of future income and
resource tax liabilities |
|
3,389 |
1,275 |
|
|
23,049 |
36,015 |
Non-current liabilities |
|
|
|
|
Long-term obligations |
|
- |
705 |
|
Asset retirement obligations |
|
11,532 |
21,816 |
|
Future income and resource tax
liabilities |
|
34,488 |
29,120 |
TOTAL LIABILITIES |
|
69,069 |
87,656 |
SHAREHOLDERS' EQUITY |
|
|
|
|
Share capital |
|
|
|
|
|
Common shares issued - 162,256,702 (2009 -
159,008,607) |
|
263,169 |
247,365 |
|
Contributed surplus |
|
1,022 |
979 |
|
Stock based compensation |
|
13,799 |
10,178 |
|
Deficit |
|
(6,752) |
(22,885) |
|
Accumulated other comprehensive
income |
|
379 |
- |
TOTAL SHAREHOLDERS'
EQUITY |
|
271,617 |
235,637 |
TOTAL EQUITY AND
LIABILITIES |
|
$ 340,686 |
$ 323,293 |
Aurizon Mines Ltd.
Statements of Earnings (Unaudited)
For the periods, |
|
|
|
|
Three months ended
December 31, |
Year ended
December 31, |
(expressed in thousands of Canadian Dollars,
except for share and per share amounts)
|
2010 |
2009 |
2010 |
2009 |
Revenue
|
|
|
|
|
|
Mining operations |
$ 48,559 |
$ 41,975 |
$ 178,743 |
$ 175,560 |
Expenses
|
|
|
|
|
|
Operating |
18,936 |
17,740 |
78,663 |
73,479 |
|
Depreciation, depletion and accretion |
9,319 |
8,574 |
35,434 |
36,514 |
|
Administrative and general |
5,660 |
3,186 |
17,177 |
10,851 |
|
Exploration |
5,372 |
1,070 |
15,643 |
3,769 |
|
Derivative losses (gains) |
85 |
5,084 |
4,402 |
(4,946) |
|
Interest on long-term debt |
- |
(57) |
- |
485 |
|
Foreign exchange loss (gain) |
15 |
25 |
(1,541) |
2,413 |
|
Capital taxes (recoveries) |
75 |
169 |
(343) |
837 |
|
Non refundable tax credits |
- |
(4,468) |
- |
(4,468) |
|
Other income |
(426) |
(181) |
(991) |
(786) |
|
39,036 |
31,142 |
148,444 |
118,148 |
Earnings for the period before income
taxes |
9,523 |
10,833 |
30,299 |
57,412 |
Current income and resource taxes |
(1,290) |
(1,235) |
(6,684) |
(7,753) |
Future income and resource taxes |
(2,028) |
264 |
(7,482) |
(12,953) |
Net earnings for the period |
$ 6,205 |
$ 9,862 |
$ 16,133 |
$ 36,706 |
Weighted average number of common
shares outstanding (thousands) - Basic |
161,827 |
158,990 |
160,250 |
156,266 |
Earnings per share - Basic |
0.04 |
0.06 |
0.10 |
0.23 |
Weighted average number of common
shares outstanding (thousands) - Diluted |
164,804 |
161,134 |
162,149 |
158,230 |
Earnings per share - Diluted |
0.04 |
0.06 |
0.10 |
0.23 |
Statements of Comprehensive
Income (Unaudited)
For the years ended December 31, |
|
|
|
|
Three months ended
December 31, |
Year ended
December 31, |
(expressed in thousands of Canadian
Dollars) |
|
2010 |
|
2009 |
|
2010 |
|
2009 |
|
|
|
|
|
|
|
|
|
Net earnings for the period |
|
$ 6,205 |
|
$ 9,862 |
|
$ 16,133 |
|
$ 36,706 |
Other comprehensive income |
|
|
|
|
|
|
|
|
|
Unrealized gains on available-for-sale marketable
securities |
|
(54) |
|
- |
|
379 |
|
- |
COMPREHENSIVE INCOME FOR THE
PERIOD |
|
$ 6,151 |
|
$ 9,862 |
|
$ 16,512 |
|
$ 36,706 |
Aurizon Mines Ltd.
Statements of Cash Flow (Unaudited)
For the periods ended December 31, |
|
|
|
|
Three months ended
December 31, |
Year ended
December 31, |
(expressed in thousands of Canadian Dollars)
|
2010 |
2009 |
2010 |
2009 |
|
|
|
|
|
OPERATING ACTIVITIES
|
|
|
|
|
|
Net earnings (loss) for the period |
$
6,205 |
$ 9,862 |
$
16,133 |
$ 36,706 |
|
Adjustment for non-cash items: |
|
|
|
|
|
Depreciation, depletion and accretion |
9,319 |
8,575 |
35,434 |
36,514 |
|
Stock based compensation |
3,210 |
784 |
7,981 |
2,865 |
|
Derivative (gains) losses |
104 |
(481) |
(8,611) |
(14,139) |
|
Future income tax expense (recovery) |
2,028 |
(264) |
7,482 |
12,953 |
|
Other |
(61) |
(60) |
51 |
(25) |
|
20,805 |
13,386 |
58,470 |
69,372 |
|
Decrease (increase) in non-cash working capital
items |
(3,427) |
(1,404) |
(8,313) |
2,450 |
Net cash provided by operating
activities |
17,378 |
11,982 |
50,157 |
71,822 |
INVESTING ACTIVITIES
|
|
|
|
|
|
Mineral properties |
(4,591) |
(7,322) |
(21,854) |
(26,811) |
|
Property, plant and equipment |
(5,942) |
(1,949) |
(10,780) |
(11,422) |
|
Other investing activities |
(2) |
2,492 |
(502) |
5,790 |
Net cash used in investing
activities |
(10,535) |
(7,000) |
(33,136) |
(14,059) |
FINANCING ACTIVITIES |
|
|
|
|
|
Issuance of shares, net |
1,569 |
220 |
9,887 |
50,925 |
|
Long-term obligations |
(4) |
(109) |
(665) |
(29,927) |
Net cash provided by financing
activities |
1,565 |
111 |
9,222 |
20,998 |
INCREASE IN CASH AND CASH
EQUIVALENTS |
8,408 |
5,093 |
26,243 |
78,761 |
CASH AND CASH EQUIVALENTS - BEGINNING
OF PERIOD |
130,933 |
108,005 |
113,098 |
34,337 |
CASH AND CASH EQUIVALENTS - END OF
PERIOD |
$ 139,341 |
$ 113,098 |
$ 139,341 |
$ 113,098 |
SOURCE Aurizon Mines Ltd.