Here's the latest from ARZ. Things aren't looking so good these days.
Aurizon Mines Ltd - News Release
Aurizon Mines loses $10,260,067 in Q4
Aurizon Mines Ltd ARZ
Shares issued 38,413,859 2001-04-09 close $0.56
Tuesday Apr 10 2001 News Release
Mr. David Hall reports
Gold production for 2000 was 56,100 ounces, compared with 60,162 ounces in 1999. Lower production resulted from the temporary suspension of operations at the Beaufor mine at the end of August, offset in part by record gold production achieved at the Sleeping Giant mine. Aurizon had operating cash flow of $4.5-million, or 12 cents per share and after accounting for an $8.6-million non-cash charge against the carrying value of certain mining assets, recorded a net loss of $8.4-million, or 22 cents per share. Total cash costs per ounce decreased to $203 (U.S.), compared with $217 (U.S.) in 1999, due to a higher proportion of production from Sleeping Giant mine where economies were achieved due to higher mill throughput.
Financial results
The shortfall in gold production, combined with a 7-per-cent decrease in the average gold price realized, resulted in lower revenue from mining operations in 2000 of $24-million, compared with $27.8-million in 1999. The average gold price realized during 2000 was $287 (U.S.) per ounce, compared with $302 (U.S.) per ounce in 1999. This realized gold price represents a per ounce premium of $8 (U.S.) over the average spot gold price in 2000 of $279 (U.S.) per ounce. Operating cash flow for 2000 was $4.4-million, or 12 cents per share, compared with $6.2-million, or 16 cents per share in 1999. The 2000 results included an $8.6-million non-cash charge against the carrying value of producing and non-producing mineral properties. Reflected in this charge are writedowns of $1.5-million and $1.7-million, against the carrying values of the Beaufor and Sleeping Giant mines, and a $5.4-million write-off in respect of the Douay exploration project in Quebec. Consequently, Aurizon incurred a net loss of $8.4-million, or 22 cents per share, compared with net earnings of $3.1-million, or eight cents per share in the previous year.
Revenue for the fourth quarter of 2000 decreased to $3.7-million, compared with $7.2-million in the fourth quarter of 1999, due to the temporary suspension of operations at Beaufor. Care and maintenance costs at Beaufor of $0.7-million were expensed during the quarter, resulting in negative operating cash flow of $0.4-million, or one cent per share, compared with cash flow of $1.3-million, or three cents per share, in the corresponding period of 1999. The $8.6-million non-cash charge to mineral properties affected the loss for the quarter of $10.3-million, or 27 cents per share, compared with earnings of $0.5-million, or one cent per share, in the fourth quarter of 1999.
Outlook
As at Dec. 31, 2000, Aurizon had cash of $3.2-million and bullion settlements of $1.1-million. However, there was a working capital deficiency of $2-million, resulting from the reclassification of a $3.8-million long-term debt as a current liability. This amount, which is non-interest-bearing and unsecured, represents the discounted value of a $4-million debt payable on Aug. 27, 2001, under the terms of the Casa Berardi property acquisition. Since Dec. 31, 2000, cash flow from operations has not been sufficient to meet the company's continuing obligations and therefore working capital will continue to deteriorate unless additional financing is obtained and/or the price of gold improves. Aurizon management is actively pursuing additional sources of capital, including the issuance of equity, mergers with other companies, and the sale of property interests to provide working capital and advance the development of its Casa Berardi property. As a result of these initiatives, management has negotiated the sale of the Beaufor mine and Perron property, from which Aurizon is expected to realize $1.65-million cash on or before April 30, 2001, subject to due diligence and all required regulatory approvals.
In 2001, all of Aurizon's gold production will come from the Sleeping Giant mine with the establishment of a production target of 31,500 ounces at a total cash cost of $230 (U.S.) per ounce, compared with actual production of 56,100 ounces and total cash costs of $203 (U.S.) per ounce achieved in 2000. The 2001 reduction reflects the temporary suspension of operations at Beaufor and pending sale, and includes a forecast 19-per-cent reduction at Sleeping Giant due to lower expected grades and reduced mill throughput.
HIGHLIGHTS
Three months ended Dec. 31
2000 1999
Operating
results
Sleeping Giant
production
Tonnes milled 57,636 55,452
Ore grade
(grams/tonne) 9.6 12.2
Gold production --
100% (ounces) 18,255 21,568
Aurizon's share
of gold production 9,128 10,784
Total cash costs/
ounce -- U.S.$ $212 $212
Depreciation and
amortization/ounce
-- U.S.$ $86 $49
-------- --------
Total production
costs/ounce
-- U.S.$ $298 $261
-------- --------
Beaufor production
Tonnes milled - 48,688
Ore grade
(grams/tonne) - 7.1
Gold production --
100% (ounces) - 10,934
Aurizon's share
of gold production - 5,467
Total cash
costs/ounce
-- U.S.$ - $255
Depreciation and
amortization/ounce
- U.S.$ - $6
-------- --------
Total production
costs/ounce --
U.S.$ - $261
-------- --------
Gold production
Number of ounces 9,128 16,251
Total cash
costs/ounce
-- U.S.$ $212 $226
Depreciation and
amortization/ounce
-- U.S.$ $94 $35
-------- --------
Total production
costs/ounce
-- U.S.$ $306 $261
-------- --------
Realized gold
selling price
U.S.$ $265 $297
Cdn.$ $394 $441
Financial
Revenue $ 3,735,629 $ 7,192,058
Net earnings
(loss) (10,260,067) 486,758
Operating
Cash flow (364,172) 1,256,558
Earnings (loss)
per share
Basic (0.27) 0.01
Fully diluted - 0.01
Cash flow
per share
Basic (0.01) 0.03
Fully diluted (0.01) 0.02
HIGHLIGHTS
Year ended Dec. 31
2000 1999
Operating
results
Sleeping Giant
production
Tonnes milled 221,250 208,408
Ore grade
(grams/tonne) 11.1 12.0
Gold production --
100% (ounces) 77,961 75,482
Aurizon's share
of gold production 38,980 37,741
Total cash costs/
ounce -- U.S.$ $191 $211
Depreciation and
amortization/ounce
-- U.S.$ $61 $50
-------- --------
Total production
costs/ounce
-- U.S.$ $252 $261
-------- --------
Beaufor production
Tonnes milled 143,457 176,394
Ore grade
(grams/tonne) 7.5 8.0
Gold production --
100% (ounces) 34,239 44,842
Aurizon's share
of gold production 17,120 22,421
Total cash
costs/ounce
-- U.S.$ $230 $226
Depreciation and
amortization/ounce
- U.S.$ $24 $17
-------- --------
Total production
costs/ounce --
U.S.$ $254 $243
-------- --------
Gold production
Number of ounces 56,100 60,162
Total cash
costs/ounce
-- U.S.$ $203 $217
Depreciation and
amortization/ounce
-- U.S.$ $50 $38
-------- --------
Total production
costs/ounce
-- U.S.$ $253 $255
-------- --------
Realized gold
selling price
U.S.$ $287 $302
Cdn.$ $424 $459
Financial
Revenue $ 24,407,977 $ 27,880,121
Net earnings
(loss) (8,377,362) 3,112,568
Operating
Cash flow 4,461,921 6,245,625
Earnings (loss)
per share
Basic (0.22) 0.08
Fully diluted - 0.06
Cash flow
per share
Basic 0.12 0.16
Fully diluted 0.08 0.11
(c) Copyright 2001 Canjex Publishing Ltd. canada-stockwatch.com |
