Aurizon Mines lowers gold production forecast for full year

Thu Aug 9, 2012 9:02am EDT
 
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(Reuters) - Aurizon Mines Ltd ARZ.TO cut its gold production outlook after a review of its only producing mine in Quebec but said profit rose in the second quarter on higher gold price.

The company said it lowered its 2012 production outlook to 150,000 ounces of gold from a range between 155,000 ounces and 160,000 ounces after reviewing its Casa Berardi mine.

Gold production fell 9 percent to 37,820 ounces in the second quarter on lower-grade ores while cash costs rose 23 percent to $671 per ounce, the company said.

Aurizon, which focuses on projects in the Abitibi region of north-western Quebec, also raised 2012 cash costs forecast by 7.5 percent to $645 per ounce.

The net income rose to C$8.6 million, or 5 Canadian cents per share, in the second quarter from C$6.6 million, or 4 Canadian cents per share, a year earlier.

Revenue rose 7 percent to C$60.9 million.

Gold prices rose 7 percent during April-June from a year earlier to average $1,611 per ounce.

Shares of British Columbia-based Aurizon closed at C$4.38 on Wednesday on the Toronto Stock Exchange.

(Reporting by Krithika Krishnamurthy in Bangalore; Editing by Don Sebastian)