Northgate Minerals Q1 profit rises on gold prices

Tue May 10, 2011 9:21am EDT
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(Reuters) - Canadian gold miner Northgate Minerals Corp reported a higher quarterly profit on higher metal and gold prices.

January-March net income rose to $19.8 million, or 7 cents a share, from $3.9 million, or 1 cent a share, a year earlier.

Revenue for the quarter was $123.0 million, slightly down from $125.3 million.

Gold production fell 30 percent to 51,210 ounces, while copper production fell 31 percent at 6.5 million pounds.

The company said average realized gold prices rose 23 percent to $1,386 an ounce.

Northgate backed its 2011 gold production view of 195,000-205,000 ounces at a cash cost of $805-$845 per ounce.

Shares of the Vancouver, British Columbia-based company closed at $2.64 on Monday on the Toronto Stock Exchange.

(Reporting by Amruta Sabnis in Bangalore; Editing by Don Sebastian)