7. Northgate Minerals (NXG) is a Canadian producer of gold and copper. The company's assets include the Kemess mine, Fosterville, Stawell and Young-Davidson.
The company reported a record first-quarter 2011 net profit of $19.8 million, or 7 cents per share, as compared to $3.9 million, or 1 cent, a year earlier. Cash flow soared to $40.1 million from $12.1 million. Meanwhile, at the end of the first quarter, the company invested $130 million toward the construction of the Young-Davidson mine.
Going forward, the company reaffirmed its production guidance from its three mines in the range of 195,000 ounces to 205,000 ounces at a cash cost of $805-$845 per ounce. Meanwhile, commissioning of Young-Davidson is scheduled for the fourth quarter of 2011 with production targeted to start by the end of first-quarter 2012. The mine is estimated to produce an average 180,000 ounces of gold annually over an initial 15-year mine life.Of the eight analysts covering the stock, 75% recommend it as a buy while the remaining rate it as a hold. There are no sell ratings on the stock. As per analysts surveyed by Bloomberg, the average 12-month price target is $4.3, nearly 50.1% higher than the stock's current price.
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