Copper And Gold Production Boost Northgate

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On May 8, 2009, Northgate Minerals(NXG Quote) reported that its Q1 FY09 earnings increased 8.9%, helped by higher gold and copper production. Net income for the quarter stood at $21.41 million to $19.67 million in the prior year's quarter. On a per share basis, earnings remained flat at $0.08 per share. Excluding one-time items, net income soared 26.9% to $23.98 million or $0.09 per share from $18.90 million or $0.07 per share. The latest quarterly earnings beat the most recent consensus estimate of $0.04 per share.

Total revenue advanced 43.8% to $123.82 million from $86.09 million a year ago. Total gold production surged 21.6% to 107,477 ounces from 88,386 ounces, while realized gold price declined 2.8% to $935.00 per ounce from $962.00 ounce in Q1 FY08. Copper production spiked 4.4% to 15.01 million pounds from 14.38 million pounds, while realized copper price dipped to $2.07 per pound from $3.68 per pound in the year-ago quarter. Property-wise, revenue from the Fosterville Gold Mine increased several times to $23.78 million from $4.40 million as gold production more than doubled to 25,779 ounces from 10,440 ounces. Revenue from the Stawell Gold Mine soared 90.9% to $22.42 million from $11.74 million, while gold production declined 21.1% to 22,392 ounces from 28,363 ounces a year ago. Finally, revenue from the Kemess South Mine diminished 17.2% to $86.15 million from $104.02 million. Gold production swelled 19.6% to 59,306 ounces from 49,583 ounces a year earlier. Geographically, revenue from Canadian operations climbed 11.0% to $77.62 million from $69.96 million, while that from Australian operations more than doubled to $46.20 million from $16.14 million on a year-over-year basis.

During Q1 FY09, Northgate Minerals incurred capital expenditure of $17.58 million, up 147.7% from $7.10 million in Q1 FY08.

Looking forward to FY09, the company expects gold production of 392,000 ounces and copper production of 54.00 million pounds.