Shares Listed: Toronto Stock Exchange - Ticker Symbol - ARZ NYSE Amex: - Ticker Symbol - AZK U.S. Registration: (File 001-31893) News Release Issue # 32 - 2010
The third quarter of 2010 was highlighted by the following:
------------------------------------------------------------------------- - Cash flow from operations of $7.1 million. - Gold production of 29,905 ounces. - Net earnings of $2.4 million, or $0.02 per share. - Total cash costs of US$604 per ounce(1) and operating margins of US$515 per ounce. - $131 million in cash; working capital of $131.5 million, and no debt. - Final delivery of remaining gold call options. - Additional metallurgical tests initiated at Joanna - feasibility study targeted for mid-2011. - High grade mineralization discovered in 123 Zone at Casa Berardi. - Initial drill results at Fayolle confirm geological model. -------------------------------------------------------------------------
From the President and Chief Executive Officer,
"Although the third quarter operational results at Casa Berardi were below expectations, we are confident that the operational issues experienced will be resolved." said
FINANCIAL RESULTS
Third Quarter 2010
Net earnings of
Operating profit margins decreased to
After removing the positive impact of non-cash unrealized derivative gains of
Revenue for the quarter from Casa Berardi operations declined to
As at
Operating costs in the third quarter of 2010 totalled
Depletion, depreciation and accretion charges ("DD&A") decreased to
Administrative and general costs in the third quarter of 2010 rose to
A significant increase in exploration activities resulted in
Income and resource taxes totalled
Cash flow from operating activities in the third quarter of 2010 was
Investing activities totalled
Included in financing activities are proceeds from the exercise of incentive stock options and repayment of government assistance during the third quarter of 2010 which resulted in a net cash inflow of
Nine Months 2010
Net earnings for the nine months ended
Cash flows from operating activities in the first nine months of 2010 totalled
Investing activities in the first nine months of 2010 totalled
Financing activities during the first nine months of 2010 resulted in a net cash inflow of
CASH RESOURCES AND LIQUIDITY
As at
Aurizon continued to have no debt as at
CASA BERARDI Operations ------------------------------------------------------------------------- YTD 2010 Q3 2010 Q2 2010 ------------------------------------------------------------------------- Operating results Tonnes milled 531,048 169,913 182,487 Grade - grams/tonne 6.73 6.15 7.20 Mill recoveries - % 90.2% 89.07% 91.2% ------------------------------------------------------------------------- Gold production - ounces 103,620 29,905 38,527 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Gold sold - ounces 105,142 30,755 39,964 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Per ounce data - US$(4) Average realized gold price(i) $1,069 $1,119 $1,082 ------------------------------------------------------------------------- Total cash costs(ii) $544 $604 $504 Amortization(iii) 240 254 240 ------------------------------------------------------------------------- Total production costs(iv) $784 $858 $744 ------------------------------------------------------------------------- Bank of Canada exchange rate - Cad/US dollar 1.036 1.039 1.028 ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- Q1 2010 Q4 2009 Q3 2009 ------------------------------------------------------------------------- Operating results Tonnes milled 178,648 172,343 178,420 Grade - grams/tonne 6.79 7.16 8.14 Mill recoveries - % 90.2% 91.9% 94.2% ------------------------------------------------------------------------- Gold production - ounces 35,188 36,459 43,962 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Gold sold - ounces 34,423 36,183 43,650 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Per ounce data - US$(4) Average realized gold price(i) $1,010 $946 $929 ------------------------------------------------------------------------- Total cash costs(ii) $538 $459 $392 Amortization(iii) 228 224 212 ------------------------------------------------------------------------- Total production costs(iv) $766 $683 $604 ------------------------------------------------------------------------- Bank of Canada exchange rate - Cad/US dollar 1.041 1.056 1.097 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Table footnotes(4): (i) Realized gold prices net of realized derivative gains or losses divided by ounces sold. (ii) Operating costs net of by-product credits, divided by ounces sold, and divided by the average Bank of Canada Cad$/US$ rate. (iii) Depreciation, amortization and accretion expenses. (iv) Total cash costs plus depreciation, amortization and accretion expenses.
Gold production for the third quarter of 2010 totalled 29,905 ounces from the processing of 169,913 tonnes at an average grade of 6.15 grams of gold per tonne. Mill recoveries declined by 2% over the second quarter of 2010 to 89% as a result of lower ore grades. This compares to ore grades of 8.1 grams of gold per tonne and recoveries of 94.2% in the same quarter of 2009.
Challenging ground conditions in a localized area of Zone 113 resulted in changes to the mining sequencing, which adversely impacted expected ore grades. Additionally, as a result of the reduced availability of underground mining equipment due to mechanical issues, daily ore throughput decreased to 1,847 tonnes per day in the third quarter of 2010, compared to 2,005 tonnes per day in the second quarter of 2010 and 1,939 tonnes per day in the third quarter of 2009. An independent study of maintenance practices and an evaluation of equipment replacement has been initiated to address this issue. Additional mining equipment was acquired in
The anticipated sequencing of lower grade ore in 2010, together with lower mill recoveries and a strong Canadian dollar, resulted in total cash costs of
Modifications to the stope design of the Lower Inter Zone in late 2009 have resulted in mining a larger mineralized envelope containing lower grade ore. Approximately 43% of 2010 production will come from this Zone. Higher ore grades are anticipated in 2011 as more areas containing underground reserve grade material that average approximately 8 grams per tonne are included in the mine plan, which is expected to result in higher gold production and lower total cash costs per ounce.
Casa Berardi Exploration
In the third quarter of 2010, two surface drill rigs and seven underground drill rigs were active at Casa Berardi. The exploration focus during the third quarter was on the upper and depth extensions of the 123 Zone, located approximately 1.0 kilometre east of the West Mine shaft, with the objective of extending the known mineralization. As at
Recent drilling from the exploration drift on the 810 metre level indicate that there is a high grade core within the 123 Zone, extending over a strike distance in the order of 200 metres vertically by 50 metres horizontally and having an approximate thickness of 25 metres. The best results were 42.1 grams of gold per tonne over 21.5 metres; 10.0 grams of gold per tonne over 35.1 metres; and 9.1 grams of gold per tonne over 27.3 metres. The deepest hole to date in the 123 Zone is at 1,100 metres which intersected two structures: 5.5 grams of gold per tonne over 10 metres (true thickness) and 20.7 grams of gold per tonne over 0.7 metres (true thickness).
OTHER PROPERTIES
Joanna Gold Development Property
During the third quarter of 2010, feasibility study work continued with larger scale metallurgical test work on the Albion process, which we expected to be used to treat the Hosco ore at Joanna. The test work completed to date indicates that the estimated overall gold recoveries, utilizing the Albion process, would be 85.1%, compared to 86.8% estimated in the pre-feasibility study, with increased consumption of cyanide, oxygen and acid. These factors would have an adverse impact on operating costs.
For these reasons, while the Albion process is an acceptable choice for the Joanna project, the Company has decided to evaluate three alternative recovery processes, including the use of an autoclave, whilst continuing to review potential improvements to the Albion process. As a result of the additional metallurgical test work, completion of the Feasibility Study has been delayed until mid 2011.
Other aspects of the Feasibility Study are proceeding according to plan. Pit optimization modelling is progressing well and feasibility level engineering of the grinding, gravity, and floatation circuits is essentially complete. Geotechnical and hydrological studies have been received. The environmental impact study is well underway without any major issues being identified.
Drilling continues to test the potential of the Joanna project, particularly the area between the Hosco and satellite pits identified in the Pre-Feasibility Study.
Kipawa Gold Property
A 6,550 metre drill program, comprising 25 drill holes, has recently been completed to test gold targets identified from prior field activities. Drill results from this program are presently being compiled and results are expected shortly.
Fayolle Property
During the third quarter of 2010, 4,648 metres of drilling was completed as part of a 15,000 metre program aimed to test a new geological model on the Fayolle gold deposit and to explore the entire deformation corridor transecting the property along a strike length of more than 2 kilometres, for which costs totalling
Aurizon may earn up to a 65% interest in the Fayolle Property, comprising 39 mining claims covering 1,373 hectares across the Porcupine-Destor Break, one of the most productive gold bearing structures of the Abitibi Belt. The Fayolle Property is situated 10 kilometres north of Aurizon's Joanna Project in north-western
Rex South Property
At Rex South,
Aurizon may earn up to a 65% interest in the Rex South Property comprising 1,274 claims covering a surface area of 555 square kilometres, about 145 kilometres southeast of the community of
Marban Block Property
During the third quarter of 2010, Aurizon initiated a
Aurizon may earn up to a 65% interest in forty-two mining claims and three mining concessions covering 976 hectares in the heart of the
Duverny Property
At Duverny, an initial
Aurizon may earn a 100% interest in 14 mineral claims covering 2,700 hectares, 25 kilometres northeast of
Opinaca-Wildcat Properties
Consistent with Aurizon's strategy of assembling a portfolio of exploration properties at various stages of development to provide a strong pipeline for future growth, agreements have been entered into that allow Aurizon to earn up to a 60% interest in the Opinaca Property, comprising 649 mineral claims covering 338 square kilometres, and up to a 65% interest in the Wildcat Property, comprising 411 mineral claims covering 214 square kilometres. Both properties are situated in the
-------------------------- (1) See "Non-GAAP measures on page 9. (2) See "Non-GAAP measures on page 9. (3) See "Non-GAAP measures on page 8. (4) See "Non-GAAP measures on page 8. (5) See "Non-GAAP measures on page 8.
OUTLOOK
With cash balances of
The fundamentals for gold remain very strong as the US adopts further quantitative easing measures to combat uncertainties regarding the sustainability of their economic recovery. These measures will likely allow US real interest rates to remain low, which is supportive of gold prices. Continued sovereign debt issues in
As previously announced, based upon results for the first nine months and the revised mine plan for the balance of 2010, Casa Berardi production guidance has been lowered to 140,000 - 145,000 ounces, compared to previous guidance of 145,000 - 155,000 ounces of gold. Total cash costs for the full year are now estimated at approximately
Beginning in 2011 through 2013, annual gold production of 160,000 to 170,000 ounces is anticipated at total cash costs approximating
On-site mining, milling and administrative costs are expected to average
Sustaining capital expenditures at Casa Berardi for the fourth quarter of 2010 are estimated to be
In addition, the Board of Directors approved the deepening of the West Mine production shaft a further 320 metres to provide access to the lower portion of the 118 and 123 Zones. The shaft, currently at a depth of 760 metres, will be extended to approximately 1,080 metres below surface. This will provide a drift access at the 1,010 metre level from these zones to the shaft. The estimated cost of the shaft deepening, drift access to the 118 and 123 zones, and related infrastructure is approximately
At Casa Berardi, an updated resource estimate for the Principal Area was completed in October that resulted in a 94% increase of the in-pit measured and indicated gold resources to 5,435,000 tonnes at an average grade of 4.02 grams per tonne, or 690,000 ounces of gold. Outside of the open pit contour, there are further measured and indicated resources totalling 719,000 tonnes at an average grade of 6.99 grams per tonne, or 162,000 ounces of gold. The updated resource block model for the Principal Area is being used in the prefeasibility study of an open pit mining operation, by BBA inc.,
Elsewhere at Casa Berardi, underground drilling will continue with two rigs from the 810 metre exploration drift to define the down dip extensions of both the 118 and 123 Zones. The 123 Zone remains open to depth and along strike to the east; however, step out drilling is limited due to the orientation of the mineralization relative to the drill bases at the 810 metre exploration drift. The two drill rigs will primarily perform infill drilling of the 123 Zone in order to upgrade the resources identified in the campaign. An updated mineral resource estimate is expected to be completed by year-end.
The 600 metre extension of the 550 metre level exploration track drift was completed in
At Joanna, an additional
At Marban, approximately
At Fayolle, approximately
At Rex South, minimal costs will be incurred in the fourth quarter as the field work was substantially completed at the end of
At Duverny, approximately
Aurizon continues to evaluate various opportunities, particularly in
ADDITIONAL INFORMATION
Additional information about the Company's Casa Berardi Mine and Joanna Gold Development projects as required by NI 43-101, sections 3.2 and 3.3 and paragraphs 3.4 (a), (c) and (d) can be found in the Company's Annual Information Form for the year ended December 31, 2009, its news releases dated March 1, 2010 and July 5, 2010 and the latest Technical Reports on each project, copies of which can be found under Aurizon's profile on SEDAR at www.sedar.com and are also available on the Company's website at www.aurizon.com.
QUALIFIED PERSON AND QUALITY CONTROL
Information of a scientific or technical nature was prepared under the supervision of
NON-GAAP MEASURES
Realized gold price per ounce of gold
Realized gold price per ounce of gold is a non-GAAP measure and is calculated by adjusting revenue for all realized gains and losses on gold derivative instruments and then dividing that by the gold ounces sold.
Unit mining costs per tonne
Unit mining costs per tonne is a non-GAAP measure and may not be comparable to data prepared by other gold producers. The Company believes that this generally accepted industry measure is a realistic indication of operating performance and is useful in allowing year over year comparisons. Unit mining costs per tonne is calculated by adjusting operating costs as shown in the Statement of Earnings for inventory adjustments and then dividing that by the tonnes processed through the mill.
Calculation of Adjusted Earnings
Adjusted net earnings are calculated by removing the gains and losses, net of income tax, from the mark-to-market revaluation of the Company's gold and foreign currency price protection contracts, as detailed in the table below. Adjusted net earnings do not constitute a measure recognized by generally accepted accounting principles (GAAP) in
------------------------------------------------------------------------- 3rd 3rd Nine Nine Quarter Quarter Months Months 2010 2009 2010 2009 ------------------------------------------------------------------------- (in thousands of Canadian dollars, except per share amounts) Net earnings as reported $2,431 $8,211 $9,927 $26,844 Deduct the after-tax effect of: Unrealized derivative gains (2,933) (560) (6,109) (10,065) ------------------------------------------------------------------------- Adjusted net (loss) earnings ($502) $7,651 $3,818 $16,779 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Adjusted net (loss) earnings per share ($0.00) $0.05 $0.02 $0.11 ------------------------------------------------------------------------- -------------------------------------------------------------------------
Total cash costs per ounce of gold
Aurizon has included a non-GAAP performance measure of total cash costs per ounce of gold in this report. Aurizon reports total cash costs on a sales basis. In the gold mining industry, this is a common performance measure but does not have any standardized meaning, and is a non-GAAP measure. The Company believes that, in addition to conventional measures prepared in accordance with GAAP, certain investors use this information to evaluate the Company's performance and ability to generate cash flow. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Total cash costs per gold ounce are derived from amounts included in the statements of earnings and include mine site operating costs such as mining, processing and administration, but exclude amortization, reclamation costs, financing costs and capital development costs. The costs included in the calculation of total cash costs per ounce of gold are reduced by silver by-product sales and then divided by gold ounces sold and the average Bank of Canada Cad$/US$ exchange rate.
Operating profit margin per ounce
Operating profit margin per ounce is a non-GAAP measure, and is calculated by subtracting the total cash costs per ounce from the average realized gold price. For the third quarter of 2010, the average realized gold price was
OUTSTANDING SHARE DATA
As of
Common Shares (TSX - ARZ & NYSE Amex - AZK) --------------------------------------------------------------- September 30, December 31, 2010 2009 --------------------------------------------------------------- Issued 161,363,482 159,008,607 Diluted 169,316,457 166,957,707 Weighted average 160,518,482 156,265,947 --------------------------------------------------------------- ---------------------------------------------------------------
CONFERENCE CALL AND WEBCAST
Aurizon management will host a conference call and live webcast on
The call is being webcast by Vcall and can be accessed on Aurizon's website at www.aurizon.com or enter the following URL into your browser: www.investorcalendar.com/IC/CEPage.asp?ID=162119. Investors can also access the webcast at www.InvestorCalendar.com. Those who wish to listen to a recording of the conference call at a later time may do so by calling the Toll Free # at 1-877-660-6853 or International # at 1-201-612-7415 (Replay Passcodes: Account # 286 and Conference ID # 358998). A replay of the call will be available until
FORWARD LOOKING STATEMENTS AND INFORMATION
This report contains "forward-looking statements" and "forward-looking information" within the meaning of applicable securities regulations in
The forward-looking information contained in this report is based on certain assumptions that the Company believes are reasonable, including the exchange rates of the U.S. and Canadian currency in 2010, that the current price of and demand for gold will be sustained or will improve, the supply of gold will remain stable, that the current mill recovery rates at the Company's Casa Berardi Mine will continue, that the Company's current mine plan can be achieved, that the general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed on reasonable terms and that the Company will not experience any material accident, labour dispute, or failure of plant or equipment.
However, forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, the risk that actual results of exploration activities will be different than anticipated, that cost of labour, equipment or materials will increase more than expected, that the future price of gold will decline, that the Canadian dollar will strengthen against the U.S. dollar, that mineral reserves or mineral resources are not as estimated, that actual costs or actual results of reclamation activities are greater than expected; that changes in project parameters as plans continue to be refined may result in increased costs, of lower rates of production than expected, of unexpected variations in ore reserves, grade or recover rates, of failure of plant, equipment or processes to operate as anticipated, of accidents, labour disputes and other risks generally associated with mining, unanticipated delays in obtaining governmental approvals or financing or in the completion of development or construction activities, as well as those factors and other risks more fully described in Aurizon's Annual Information Form filed with the securities commission of all of the provinces and territories of
CAUTIONARY NOTE TO US READERS AND INVESTORS
As a
Cautionary Note to U.S. Readers and Investors Regarding Mineral Resources
The SEC allows mining companies, in their filings with the SEC, to disclose only those mineral deposits they can economically and legally extract or produce. The Company may use certain terms in this document, such as "mineral resources", "indicated mineral resources" and "inferred mineral resources" that are recognized and mandated by Canadian securities regulators but are not recognized by the SEC.
This document may use the term "indicated" mineral resources. U.S. readers are cautioned that while that term is recognized and required by Canadian regulations, the SEC does not recognize it. U.S. readers and investors are cautioned not to assume that any part or all of mineral deposits in this category will ever be converted into mineral reserves.
This document may also use the term "inferred" mineral resources. U.S. readers are cautioned that while this term is recognized and required by Canadian regulations, the SEC does not recognize it. "Inferred resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. U.S. readers and investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.
Aurizon is a gold producer with a growth strategy focused on developing its existing projects in the Abitibi region of north-western
Aurizon Mines Ltd. Balance Sheets (Unaudited) As at September 30 December 31 (expressed in thousands of Canadian Dollars) 2010 2009 ------------------------------------------------------------------------- ASSETS Current assets Cash and cash equivalents $ 130,933 $ 113,098 Marketable securities 933 - Accounts receivable and prepaid expenses 5,072 4,825 Tax credits receivable 1,790 2,587 Advances 1,376 - Derivative instrument assets 104 5,274 Inventories 9,970 11,897 ------------------------------------------------------------------------- 150,178 137,681 Non-current assets Other assets 17,218 14,551 Property, plant and equipment 49,531 53,691 Mineral properties 118,854 117,370 ------------------------------------------------------------------------- TOTAL ASSETS $ 335,781 $ 323,293 ------------------------------------------------------------------------- ------------------------------------------------------------------------- LIABILITIES Current liabilities Accounts payable and accrued liabilities $ 17,501 $ 16,451 Derivative instrument liabilities - 13,885 Current portion of long-term obligations 753 652 Current provincial resource taxes payable - 3,752 Current portion of future income tax liabilities 411 1,275 ------------------------------------------------------------------------- 18,665 36,015 Non-current liabilities Long-term obligations - 705 Asset retirement obligations 22,592 21,816 Future income and resource tax liabilities 35,439 29,120 ------------------------------------------------------------------------- TOTAL LIABILITIES 76,696 87,656 ------------------------------------------------------------------------- SHAREHOLDERS' EQUITY Share capital Common shares issued - 161,363,482 (2009 - 159,008,607) 259,302 247,365 Contributed surplus 1,022 979 Stock based compensation 11,286 10,178 Deficit (12,958) (22,885) Accumulated other comprehensive income 433 - ------------------------------------------------------------------------- TOTAL SHAREHOLDERS' EQUITY 259,085 235,637 ------------------------------------------------------------------------- TOTAL EQUITY AND LIABILITIES $ 335,781 $ 323,293 ------------------------------------------------------------------------- ------------------------------------------------------------------------- The attached notes form an integral part of these financial statements. Signed on behalf of the Board, (signed) (signed) Andre Falzon, Richard Faucher, Director, Chairman of Director, Audit Committee Member the Audit Committee Aurizon Mines Ltd. Statements of Earnings (Unaudited) (expressed in thousands of Three months ended Nine months ended Canadian Dollars, except September 30 September 30 per share data) 2010 2009 2010 2009 ------------------------------------------------------------------------- Revenue Mining operations $ 39,882 $ 45,549 $ 130,184 $ 133,585 ------------------------------------------------------------------------- Expenses Operating 19,470 18,989 59,727 55,739 Depreciation, depletion and accretion 8,104 10,147 26,115 27,940 Administrative and general 2,905 2,250 11,518 7,665 Exploration 5,471 729 10,271 2,699 Derivative losses (gains) (158) 667 4,317 (10,030) Interest on long-term debt - 159 - 542 Foreign exchange (gain) loss (539) (427) (1,557) 2,388 Capital taxes 69 270 (418) 668 Other income (271) (151) (565) (605) ------------------------------------------------------------------------- 35,051 32,633 109,408 87,006 ------------------------------------------------------------------------- Earnings for the period before income tax 4,831 12,916 20,776 46,579 Current income and resource taxes (2,160) (2,101) (5,394) (6,518) Future income and resource taxes (240) (2,604) (5,455) (13,217) ------------------------------------------------------------------------- NET EARNINGS FOR THE PERIOD $ 2,431 $ 8,211 $ 9,927 $ 26,844 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Weighted average number of common shares outstanding (thousands) 160,518 158,863 159,724 155,358 Earnings per share - Basic and diluted $ 0.02 $ 0.05 $ 0.06 $ 0.17 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Aurizon Mines Ltd. Statements of Comprehensive Income (Unaudited) (expressed in thousands of Three months ended Nine months ended Canadian Dollars, except September 30 September 30 per share data) 2010 2009 2010 2009 ------------------------------------------------------------------------- Net earnings for the period $ 2,431 $ 8,211 $ 9,927 $ 26,844 Other comprehensive income Unrealized gains on available-for-sale marketable securities 578 - 433 - ------------------------------------------------------------------------- COMPREHENSIVE INCOME FOR THE PERIOD $ 3,009 $ 8,211 $ 10,360 $ 26,844 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Aurizon Mines Ltd. Statements of Cash Flow (Unaudited) Three months ended Nine months ended (expressed in thousands of September 30 September 30 Canadian Dollars) 2010 2009 2010 2009 ------------------------------------------------------------------------- Operating activities Net earnings for the period $ 2,431 $ 8,211 $ 9,927 $ 26,844 Adjustment for non-cash items: Depreciation, depletion and accretion 8,104 10,147 26,115 27,940 Refundable tax credits (1,043) (127) (1,985) (472) Non refundable tax credits (653) - (1,237) - Stock based compensation 804 516 4,770 2,081 Unrealized derivative gains (4,185) (715) (8,715) (13,658) Future income taxes 240 2,604 5,455 13,217 Capital taxes 69 270 179 811 Other 168 - 273 34 ------------------------------------------------------------------------- 5,935 20,906 34,782 56,797 Decrease (increase) in non-cash working capital items (264) (3,339) (3,434) 3,043 Non refundable taxes 1,430 - 1,430 - ------------------------------------------------------------------------- Net cash provided by operating activities 7,101 17,567 32,778 59,840 ------------------------------------------------------------------------- Investing activities Property, plant and equipment (1,773) (1,751) (4,838) (9,473) Mineral properties (4,886) (6,571) (17,262) (19,489) Restricted cash proceeds - 30,208 - 21,225 Derivative instruments - (2,620) - (2,620) Refundable tax credits - 3,298 - 3,298 Purchase of marketable securities - - (500) - ------------------------------------------------------------------------- Net cash provided by (used in) investing activities (6,659) 22,564 (22,600) (7,059) ------------------------------------------------------------------------- Financing activities Issuance of shares 6,186 358 8,318 50,705 Long-term obligations (21) (20,951) (661) (29,818) ------------------------------------------------------------------------- Net cash provided by (used in) financing activities 6,165 (20,593) 7,657 20,887 ------------------------------------------------------------------------- NET INCREASE IN CASH AND CASH EQUIVALENTS 6,607 19,538 17,835 73,668 CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 124,326 88,467 113,098 34,337 ------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS - END OF PERIOD $ 130,933 $ 108,005 $ 130,933 $ 108,005 ------------------------------------------------------------------------- -------------------------------------------------------------------------
SOURCE Aurizon Mines Ltd.