Lower income taxes and investments in associated companies resulted in a better earnings picture for Northgate Exploration (TSE). The Toronto-based company reported net income of $9.4 million or 42 cents per share for the year ended Dec. 31, compared with $2.3 million or 10 cents per share at the same time last year. Annual revenues from metal production and investments increased to $20.9 million from $17.8 million in 1988.
The Northgate group of companies produced 168,200 oz. gold in 1989 compared with 142,300 oz. a year earlier. Record output reported by Campbell Resources’ (TSE) Joe Mann mine in Chibougamau, Que., and Sonora Gold’s (TSE) Jamestown mine in California were largely responsible for the increase, Northgate said.
Also included in Northgate’s gold production figures is about 10,200 oz. from the 35% owned Choquelimpie mine in Chile which Northgate acquired from Westfield Minerals (TSE) last year.
Fourth-quarter net income was $926,000 or 4 cents per share in 1989, compared with $32,000 in the 1988 period. Fourth-quarter revenues increased to $8.2 million from $3.4 million in 1988.
Northgate said an increase in consolidated assets to $441 million in 1989, compared with $321.7 million last year, was due to the acquisition of Neptune Resources by ABM Gold (AMEX). Northgate holds 50% of the equity and 81% of the voting shares of ABM.
Northgate’s consolidated cash position has dropped to $102.6 million from $157.9 million in 1988 largely because of expenditures on ABM’s Colomac gold mine in the Northwest Territories, the company said. Northgate Exploration (TSE) Year ended Dec. 31 1989 1988 Revenue (000s) $20,967 $17,882 Net earnings (000s) 9,442 2,262 Net earnings
(per share) 0.42 0.10004
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