May 11, 2010 / 12:23 PM / 9 years ago

UPDATE 2-Northgate Minerals posts in-line Q1 profit

* Q1 adj EPS $0.03 meets estimates

* Q1 revenue $125.3 mln vs $123.8 mln yr ago

* Sees 2010 gold production of 310,000 ounces

* Shares up as much as 6 pct (Recasts, adds details and share movement)

May 11 (Reuters) - Canadian gold miner Northgate Minerals Corp NGX.TO posted an adjusted quarterly profit that was in line with market estimates, helped by higher realized gold and copper prices.

Shares of the company rose 6 percent to C$3.39 in morning trade Tuesday.

The company said it expects 2010 gold production of 310,000 ounces at a cash cost of $553 per ounce.

For the first quarter, the company posted a net income of $4.9 million, or 2 cents a share, compared with $21.4 million, or 8 cents a share, a year earlier.

The company, which has operations in Canada and Australia, posted an adjusted quarterly earnings of 3 cents a share.

Revenue for the quarter rose to $125.3 million from $123.8 million, a year ago.

Analysts on average were expecting earnings of 3 cents a share, before special items, on revenue of $119 million, according to Thomson Reuters I/B/E/S.

Total gold production during the quarter fell 32 percent to 73,362 ounces, while copper production was also down 37 percent at 9.5 million pounds.

The company also expects to begin construction of surface facilities at its Young-Davidson site at Matachewan, Ontario, in the forthcoming summer.

“At Young-Davidson, we will wrap up a near-surface diamond drill program, where results to date have indicated the potential to add to current open pit reserves,” Chief Executive Ken Stowe said in a statement.

Shares of the Vancouver, British Columbia-based company were up 4 percent, or 13 Canadian cents, at C$3.34 Tuesday afternoon on the Toronto Stock Exchange. (Reporting by Koustav Samanta in Bangalore; Editing by Ratul Ray Chaudhuri)

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