Aurizon Mines Posts Big 3Q Profit Increase

Vancouver-based Aurizon Mines Ltd. said Thursday its third-quarter profit rose dramatically as higher prices and output offset increased costs, more taxes and foreign exchange losses.

Net income climbed to $13.1 million, or eight cents per share, from $2.3 million, or one cent per share, in the 2010 third quarter, said Aurizon, which operates numerous projects in Quebec, Canada.

As a result of new Quebec resource tax legislation in 2011 and higher taxable profits in the quarter of 2011, income and resource taxes totaled $10.6 million, up from $2.7 million for the same period of 2010, the company said.

Revenue jumped 71 percent to a company record of $68.1 million from $39.9 million.

Gold production were 49 percent higher to 44,457 ounces from 40,257 ounces.

The average realized gold price increased to $1,695 per ounce from $1,119 in last year's third quarter.

We are seeing greater margins as lower operating costs on a per-ounce basis complement higher gold prices to realize an operating margin of $1,198 per ounce for the quarter, an improvement of 233 percent over the corresponding period last year, said CEO George Paspalas in a statement.

Aurizon backed its 2011 production guidance of 165,000 ounces of gold and cash costs of $535 per ounce.