(RTTNews) - Northgate Minerals Corp. (NXG: News ) Tuesday reported a narrower loss for the third quarter, reflecting higher gold and copper production and realized prices. On an adjusted basis, earnings per share, however, missed Street view by a penny.

Net loss for the third quarter narrowed to US$ 8.56 million or US$ 0.03 per share from US$ 29.44 million or US$ 0.12 per share in the previous year. Results for the quarter include a US$ 10.4 million write-down of investments in auction rate securities and a US$ 5.8 million mark-to-market loss on Northgate's copper forward sales contracts.

On an adjusted basis, net earnings were US$ 7.66 million or US$ 0.03 per share, compared to a loss of US$ 28.38 million or US$ 0.11 per share last year.

On average, six analysts polled by Thomson Reuters expected the company to report earnings of $0.04 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenue for the quarter increased to US$ 120.16 million from US$ 99.27 million last year.

Total expenses for the quarter declined to US$ 127.59 million from US$ 133.38 million in the previous year. Exploration expenses declined to US$ 3.13 million from US$ 10.25 million. Write-down of auction rate securities for the quarter was US$ 10.44 million, down from US$ 16.91 million a year ago.
Total gold production for the quarter rose to 80,791 ounces from 64,588 ounces last year. Gold sales increased to 85,397 ounces from 64,685 ounces a year ago. Realized gold price for the quarter was US$ 982 per ounce, compared to US$ 868 per ounce in the previous year.

Copper production rose to 11,934 pounds from 9,195 pounds and copper sales rose to 12,816 pounds from 8,633 pounds last year. Realized copper price for the quarter was US$ 3.39 per pound, compared to US$ 2.04 per pound a year ago.

For the nine-month period, net earnings were US$ 18.25 million or US$ 0.07 per share, compared to a loss of US$ 7.93 million or US$ 0.03 per share in the same period of the previous year. Total revenue for the period rose to US$ 374.28 million from US$ 324.24 million a year ago.

Looking forward, the company expects to produce 365,000 ounces of gold at a net cash cost of US$ 493 per ounce, down from the previous forecast of 382,500 ounces.

NXG is currently trading at $2.54, down 0.08 or 3.05%, on a volume of 141K shares on the AMEX.

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by RTT Staff Writer

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