BRITISH COLUMBIA

Aurizon Mines posts Q1 million loss, says output constrained during transition

05/15/2013 08:34 EDT | Updated 07/15/2013 05:12 EDT
VANCOUVER - Aurizon Mines Ltd. (TSX:ARZ) says it had a $2.9-million net loss in the first quarter — a contrast to the profit it reported a year earlier — as output and revenue fell and the company fended off a hostile takeover.

The loss, equivalent to two cents per share, came during a period when the Vancouver-based mining company battled a takeover by Alamos Gold Inc. (AGI) and arranging a successful friendly deal with Hecla Mining Co.

Aurizon also says its Casa Berardi mine will be in a transition phase for 15 months as it installs infrastructure to reach new areas to mine. It said the mine produced 24,444 ounces of gold during the quarter, in line with its budget.

Aurizon's revenue during the quarter ended March 31 was $43.2 million, down from $56.8 million a year earlier when Aurizon produced more ounces and sold them at higher prices.

In the first quarter of 2012,, Aurizon's net income was $8.6 million or five cents per share.

The average price received in the first quarter of 2013 was US$1,621 per ounce, with 26,200 ounces sold. A year earlier, it sold 33,364 ounces at an average realized price of US$1,621 per ounce.

Since the quarter ended, the price of gold has dropped substantially.