November 10, 2010 / 1:32 PM / 9 years ago

UPDATE 1-Northgate Minerals posts Q3 loss as production drops

* Q3 loss/shr $0.03 vs loss/shr $0.03 year ago

* Q3 adj EPS $0.01

* Q3 gold prod 64,999 oz vs 80,791 oz year ago

* Sees Q4 gold prod at 67,500 oz

* Says cost of production rises 20 pct

Nov 10 (Reuters) - Canada’s Northgate Minerals Corp’s NGX.TO quarterly net loss widened marginally as the junior miner witnessed a drop in gold and copper production, hurt by lower production and higher production costs.

For the July-September period, the company produced 64,999 ounces of gold and 10.9 million pounds of copper at an average net cash cost of $645 per ounce.

This compares with the year-ago quarterly production of 80,791 ounces of gold and 11.9 million pounds of copper at an average net cash cost of $539 per ounce.

Northgate, which has development and exploration projects in Canada and Australia, reported a loss of $8.9 million, or 3 cents a share, for the quarter, compared with a loss of $8.6 million, or 3 cents a share, a year ago.

The company said its quarterly results included a an unrealized loss of $14.8 million related to copper forward sales contracts. Excluding special items, it earned $1.7 million, or 1 cent per share.

Revenue fell 26 percent to $88.3 million.

Northgate expects to produce about 67,500 ounces of gold during the October-December quarter and sees 2010 total production at 274,000 ounces of gold.

Shares of the company, which have lost about 7 percent this year, closed at C$2.96 Tuesday on the Toronto Stock Exchange. (Reporting by Ashutosh Joshi in Bangalore; Editing by Gopakumar Warrier)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below