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NORTHGATE REPORTS STRONG THIRD QUARTER EARNINGS AND CASH FLOW
Monday October 30, 9:57 pm ET
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Oct 30, 2006 -- (All figures in US dollars except where noted) - Northgate Minerals Corporation (TSX:NGX.TO - News)(AMEX:NXG - News) today reported cash flow from operations before changes in working capital and other items of $25,370,000 or $0.11 per diluted common share and net earnings of $14,902,000 or $0.07 per diluted common share for the third quarter of 2006.
Third Quarter Highlights
- Production of 74,789 ounces of gold and 19.6 million pounds of copper.
- The quarterly net cash cost of gold production at the Kemess mine was a record low of negative $118 per ounce. Year-to-date Kemess has produced 228,549 ounces of gold at an average net cash cost of negative $44 per ounce.
- The diamond drilling program at the Young-Davidson property continued to significantly expand the areas of known gold mineralization.
- A large geophysical anomaly was identified to the east of the Kemess North Offset.
- The public hearing phase of Joint Federal-Provincial Panel Review for the Kemess North Project began today and is expected to conclude on December 15, 2006.
- Northgate repurchased an additional 18,000 ounces of its gold forward sales position during the quarter reducing its remaining position to only 66,000 ounces.
- So far this year Kemess has the distinction of being the safest metal mine in British Columbia.
- In early October, Northgate hedged approximately 47% of its estimated 2007 copper production at an average price of $3.15 per pound.
Ken Stowe, President and CEO, stated; "The Kemess Mine posted strong operating results during the third quarter, recording the lowest quarterly cash production cost in the history of the mine and adding over $55 million in cash to Northgate's balance sheet. The fourth quarter of 2006 is shaping up to be one of Northgate's best ever, with the Kemess Mine forecast to have its highest gold and copper production of the year in a very strong metal price environment. Our exploration team at Young-Davidson continues to achieve excellent results and we plan to complete our first resource update for the property by the end of November. Project activity is expected to accelerate in the fourth quarter with the collaring of the portal for the new exploration ramp. In addition to the excellent progress we are making on our internal growth initiatives at Young-Davidson and Kemess North, we continue to pursue a number of external opportunities which are consistent with our growth strategy."
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