The Vancouver Business Thread

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Northgate Minerals reports reduced first-quarter profit of US$4.9 million
By The Canadian Press

VANCOUVER - Northgate Minerals Corp. (TSX:NGX) says its first-quarter profit fell 77 per cent amid lower gold and copper production.

The Vancouver-based mining company, which reports in U.S. dollars, said Tuesday it earned $4.9 million or two cents per share in the first quarter, compared to $21.4 million or eight cents per share a year ago. Revenue was $125.3 million, slightly higher than $123.8 million in the same period of 2009 due to higher metals prices.

Northgate said it produced 73,362 ounces of gold at an average net cash cost of $654 per ounce in the quarter, compared to 107,477 ounces at a cost of $396 per ounce in the first quarter of 2009. The company produced 9.5 million pounds of copper compared to 15.0 million pounds a year ago.

Meanwhile, Northgate sold 75,128 ounces of gold at a realized price of $1,128 per ounce and 11.1 million pounds of copper at a realized price of $3.49 per pound. This compares to 106,684 ounces of gold at $934 per ounce and 13.0 million pounds of copper at $2.07 per pound in the same period last year.

Northgate expects to produce 310,000 ounces of gold at a cash cost of $553 per ounce in 2010.

The company, which has operations in Canada and Australia, said it expects to begin construction of its Young-Davidson project in northern Ontario this summer.

Shares in Northgate added 11 cents to $3.32 in morning trading on the Toronto Stock Exchange.

http://www.canadianbusiness.com/mark...ntent=T3325199