Northgate Minerals Posts 3rd Quarter Loss

Tuesday, November 06, 2007 03:52 AM

Northgate Minerals, which owns and operates the Kemess South mine has reported a 3rd quarter net loss of $11,937,000 US.

The net loss can be blamed on the non-cash write down of the carrying value of the Kemess North Project which has been scrapped because the joint enviromental review panel said the project, in its current form, should not be approved.

Meantime, Kemess South was a star performer, says Ken Sotwe, President and CEO,"The Kemess South mine postedstrong operating results in the third quarter while recording the lowest quarterly net cash cost of production in the history of the mine and generating $30 million in operating cash flow."

Stowe says the dollars from Kemess South have helped the company make new aquisitions " After a long search for the right asset, we were very pleased to announce our friendly proposal to acquirePerseverance, which currently operates two gold mines in the state of Victoria, Australia. We expect that the all-cash transaction will close next year in February and when it does, Northgate’s 2008 gold production will be over 430,000 ounces."

Stowe also says, Kemess south is producing enough cash to allow Northgate to make other aquisitions.

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Posted on Tuesday, November 06, 2007 03:52 AM in News by 250 News

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Comments

Posted by: Moses on November 6 2007 8:58 AM

Congratulations to the bear-whisperers for encouraging Northgate to move their operations to Australia.

Plenty of jobs for everyone, aboriginal and non-aboriginal.

Posted by: northman on November 6 2007 9:31 AM

Kemess north will be a go, its too high of a profile deposit to be swept under the rug. Its not a question of "if" but "when" it reaches production weather norgate mines it or not is the question. It can aquired by another company that has the right business model for it.

Posted by: Andyfreeze on November 6 2007 12:58 PM

As an ex shareholder in Northgate, I only agree that there is a POSSIBILITY that Kemess north will go ahead but it is not looking good so far!

Posted by: Chadermando on November 6 2007 1:51 PM

In light of the melt down of the American dollar I wouldn't be surprised if Kemess North goes ahead in a responsible manor with the right business model at some point in the future. If not then we find other sources of employment....