Vancouver A one-time gain from the sale of its South American properties pushed Northgate Explorations (NGX-T) into the black for the second quarter of 2001.
The $1.8-million after-tax gain, comprising $400,000 in cash plus a $7.6 million promissory note before tax , propelled the company to record net income of $988,000, or 3 per share, for the three months ended June 30. Excluding this one-time gain, Northgate would have had a net loss of $794,000, about the same as reported in the first quarter of 2001.
Revenues came in at $37.7 million for the second quarter of the year and $80.1 million for the first half.
At its 95%-owned Kemess copper-gold mine in northern British Columbia, production in the second quarter hit 68,023 oz. gold and 14.3 million lbs. copper. This marked a significant improvement over the 57,700 oz. gold and 10,950 tonnes copper produced in the corresponding period of 2000.
Driving the gains were higher grades, which averaged 0.9 gram gold per tonne and 0.24% copper, up from 0.88 gram gold and 0.23% copper in the second quarter of 2000.
Recoveries also improved, raising to 65% for gold and 72% for copper. For the first six months of the year, the operation cranked out 141,383 oz. gold and 32.9 million lbs. copper. Cash operating costs over the first six months tallied US$185 gold per oz, net of byproduct credits. The average metal prices received on sales in the second quarter of 2001, before hedging gains, came in at US$268 per oz. gold and US$0.75 per lb. copper.
For the year, the operation is slated to produce over 265,000 oz. gold and approximately 70 million lbs. copper at an estimated cash operating cost of US$190 per oz. gold, net of byproduct credits.
On the exploration front, a 10-hole drill program has been completed over Kemess North. Assay results are expected shortly. Kemess North hosts a resource of 360 million tonnes grading 0.154% copper and 0.3 gram gold.
Be the first to comment on "Northgate rides out low prices"