May 8, 2009 / 12:43 PM / in 9 years

UPDATE 1-Northgate Minerals Q1 profit better than expected

* Q1 EPS $0.09 excluding items vs est $0.05

* Q1 rev up 44 pct * Q1 gold production 107,477 ounces

May 8 (Reuters) - Canada’s Northgate Minerals Corp NGX.TO reported a better-than-expected quarterly profit, driven by higher production of copper and gold.

“Strong financial results were achieved from our operations during the first quarter, as we beat the forecast for both gold and copper production, generating excellent cash flow from operations of $45 million,” Chief Executive Officer Ken Stowe said.

For the first quarter, the company reported net earnings of $21.4 million, or 8 cents a share, compared with $20.4 million, or 8 cents a share, a year ago.

Excluding items, it earned 9 cents a share, while cash flow from operations, after changes in working capital and other items, was 18 Canadian cents a share.

Revenue rose 44 percent to $123.8 million.

Analysts expected earnings of 5 cents a share, excluding items, for the quarter, according to Reuters Estimates.

The company said it produced 107,477 ounces of gold during the quarter, which was above its first-quarter estimates.

The average net cash cost of production rose to $396 per ounce, which was lower than its forecast.

Northgate Minerals said total gold sales for the quarter were 111,850 ounces at a price of $935 per ounce.

Shares of the company closed at C$1.92 Thursday on the Toronto Stock Exchange. (Reporting by Ashutosh Joshi in Bangalore; Editing by Anil D‘Silva)

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