November 10, 2011 / 11:30 AM / 7 years ago

UPDATE 2-Aurizon profit lags; cuts capital budget for Quebec mine

* Expects 2011 capital budget of C$39.3 mln for Casa Berardi

* Q3 EPS C$0.08 vs est C$0.13

* Revenue up 71 pct at C$68 mln vs est C$72.0 mln (Adds details)

Nov 10 (Reuters) - Gold miner Aurizon Mines reported a nearly six-fold jump in third-quarter profit on robust gold prices, but missed market expectations, sending its shares down more than 2 percent.

Capital expenditure at Casa Berardi , its key producing mine in Quebec, is expected to be C$39.3 million partly due to delays in initiating shaft deepening at the site, the company said.

Aurizon had earlier forecast a capital budget of C$46.4 million for the mine.

Aurizon’s profit rose to C$13.1 million, or 8 Canadian cents a share, from C$2.3 million, or 1 Canadian cent a share, a year ago.

Analysts, on average, had expected earnings of 13 Canadian cents a share, according to Thomson Reuters I/B/E/S.

Revenue rose 71 percent to C$68 million, but lagged analysts’ expectations of C$72.0 million.

Gold production jumped 49 percent to 44,457 ounces.

Lower cash operating costs and surging gold prices boosted operating margins to $1,198 per ounce in the quarter, from $515 per ounce in the year-ago period, the company said.

Gold prices averaged more than $1,700 an ounce in the third quarter, up roughly 35 percent from a year earlier. It hit an all-time high of $1,920.30 an ounce in September.

Shares of the Vancouver, British Columbia-based company were trading down at C$5.87 on Thursday on the Toronto Stock Exchange. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Saumyadeb Chakrabarty and Sriraj Kalluvila)

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