Vancouver — Record fourth quarter production from its Kemess gold-copper mine propelled
Annual output from the north-central British Columbia mine was up about 3% over the previous year, at 303,475 oz. gold and 78.3 million lbs. copper. The company saw net earnings of over US$31 million in 2004, up a whopping 680% from the US$4 million posted in 2003. Average net cash costs of US$135 per oz. gold were incurred over the year.
Fourth quarter production of almost 95,000 oz. gold and 24 million lbs. copper at Kemess secured the record year for Northgate. Quarterly net cash costs were US$111 per oz. gold. Higher grades were encountered during the final quarter of 2004, averaging 0.88 gram gold per tonne, about 18% higher than in the corresponding period of 2003.
Higher realized metal prices greatly assisted the company in its record earnings, although a soaring Canadian dollar partially offset some of the gains.
Northgate is anxiously awaiting a formal announcement from a joint British Columbia-Canada review panel on the proposed development of the Kemess North project.
On the labour front, two days of strike action ended at the Kemess mine following a final settlement agreement reached with unionized workers.
A new 3-year agreement has been ratified by Kemess employees represented by the International Union of Operating Engineers Local 115. About 260 production and maintenance personnel at Kemess are represented by the Union.
The new agreement sees annual wage increases of 4.5%, 4% and 4% plus increases to the benefits package.
Northgate shares saw a greater than 10% rally, to the $2.00-2.10 level, following the strike settlement and record earnings announcement. With its 200 million shares outstanding, the company has a market capitalization of about $400 million.
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