Aurizon Mines - What it Says on the Tin

LONDON - Unusually among gold producers, Aurizon has already achieved what it set out to do, in that its quarterly production and cost numbers already correlate closely with those of its mining plan. Having now effectively ramped up its underground mine to the target rate, it only remains for the company to do the same at its open pit operation. As such, its shares already trade at a premium to the absolute value implied by discounting dividend flows to investors over the formal life of the mine. With just a small amount of exploration investment however, we believe that it is entirely feasible for Aurizon to extend its mine life considerably.

Aurizon Mines Ltd is a Canadian gold company with three major assets in the Abitibi region of Canada. Its ambition is to become an intermediate producer focused on favourable geological trends, close to infrastructure, in politically stable, pro-mining jurisdictions

Year Revenue PBT* EPS* DPS P/E Yield End (C$m) (C$m) (c) (c) (x) (%) 12/07 119.2 19.5 14.2 0.0 36.3 N/A 12/08 144.5 32.5 17.5 0.0 29.4 N/A 12/09e 149.7 29.0 14.9 0.0 34.5 N/A 12/10e 162.3 35.7 14.7 15.0 34.9 2.9

Note: *PBT and EPS are normalised, excluding goodwill amortisation and exceptional items.

If you would like to view the full report then please click on the following link www.edisoninvestmentresearch.co.uk/researchreports/aurizon080909outlook.pdf

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Source: Edison Investment Research

Charles Gibson - +44(0)2030775724