NEWS - Resources & Energy
Northgate posts 3rd-qtr operating profit
Reuters
TORONTO - Canada's Northgate Minerals Corp has reported a turnaround third-quarter operating profit due to a 25 per cent increase in gold production and a higher realized price for the precious metal.
Excluding one-time items, the Vancouver-based company said it earned $US7.7 million, or three cents a share, compared with a year-ago loss of $US28.4 million, or 11 cents a share.
On a net basis, the company posted a loss of $US8.6 million, or three cents a share, down from a net loss of $US29.4 million, or 12 cents a share, in the corresponding quarter of 2008.
Quarterly revenue rose 21 per cent to $US120.2 million.
The company, which has operations in Canada and Australia, trimmed its 2009 gold production forecast to 365,000 ounces at a net cash cost of $US493 per ounce, due to lower production at its Stawell and Fosterville mines in Australia. It had earlier forecast production of 382,500 ounces of gold at a net cash cost of $US440 per ounce.
Northgate said the higher cash costs estimate is due to the stronger Canadian and Australian dollar relative to the US dollar and declining ore reserves at its Kemess mine in the Canadian province of British Columbia.
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