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UPDATE 1-Northgate profit falls as output declines
August 10, 2010 / 12:10 PM / 7 years ago

UPDATE 1-Northgate profit falls as output declines

* Q2 Adj loss $0.02/shr Vs yr-ago profit of $0.04/shr

* Q2 revenue down 5.8 pct to $122.7 mln (All figures in U.S. dollars)

TORONTO, Aug 10 (Reuters) - Junior gold miner Northgate Minerals NGX.TO said on Tuesday its second-quarter profit fell, as its gold production declined and average mining costs rose significantly in the period.

Net income in the quarter was $4.3 million, or 1 cent a share, down from $5.4 million, or 2 cents a share, a year earlier.

Excluding an unrealized gain relating to copper sales contracts, the company posted a loss of $7.1 million, or 2 cents a share, compared with a year-ago profit of $10.1 million, or 4 cents a share.

Vancouver-based Northgate said quarterly revenue fell 5.8 percent to $122.7 million.

Quarterly gold sales fell 34 percent to 65,943 ounces, primarily due to lower output from its Stawell mine in Australia and its Kemess mine in British Columbia, Canada.

Average production costs in the quarter rose nearly 50 percent to $693 an ounce and offset gains from a higher realized gold price in the quarter. (Reporting by Euan Rocha; Editing by Derek Caney)

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