August 11, 2011 / 2:57 PM / 7 years ago

UPDATE 3-Aurizon profit misses; delays Quebec mine study

* Delay takes study into sometime next year

* Aims to cut costs at Hosco deposit site

* Q2 EPS C$0.04 vs est C$0.08

* Revenue up 17 pct to C$59 mln

* Shares down 6 pct on the TSX (Adds details from CEO interview; updates share price)

TORONTO, Aug 11 (Reuters) - Gold miner Aurizon (ARZ.TO) said on Thursday it would delay a feasibility study on a project in Quebec and reported a quarterly profit that fell short of expectations, sending its shares down 6 percent.

The feasibility study on the Hosco deposit at its Joanna project had been expected to end by the third quarter of this year, but the company has delayed it as it examines ways to cut both projected capital and operating costs at the site.

“Some of the cost issues are not going to go away, because inflation is fairly rampant in the mining and construction sector these days. So the challenge for us is to mitigate that by looking at the design of things, optimizing the mining sequence and optimizing the surface infrastructure,” Chief Executive David Hall told Reuters.

“I can’t put a specific timeframe on the delay in the feasibility study, but it is going to be several months,” said Hall. “It’s unlikely that we will have anything by the end of the year. This feasibility study is running into sometime next year.”


For the April-June period, Aurizon earned C$6.3 million ($6.4 million), or 4 Canadian cents a share, compared with C$5.4 million, or 3 Canadian cents a share, a year ago. Analysts had forecast earnings of 8 Canadian cents a share, according to Thomson Reuters I/B/E/S.

Revenue grew 17 percent to C$59 million.

The company, which has exploration activities at its Joanna Fayolle and Marban properties, revised down its capital expenditures at Casa Berardi, its only producing mine, by 9 percent to C$46.4 million. All the properties are in Quebec.

Aurizon cut the top end of its full-year production forecast in May to about 165,000 ounces of gold from a range of 165,000-170,000 ounces,

Shares of the Vancouver-based miner were down 42 Canadian cents at C$6.48 on Thursday afternoon on the Toronto Stock Exchange.

$1=$0.99 Canadian Reporting by Euan Rocha in Toronto and Gowri Jayakumar in Bangalore; editing by Rob Wilson

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below