August 5, 2011 / 12:27 PM / 7 years ago

UPDATE 1-Northgate Minerals' loss widens, cuts 2011 production outlook

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Aug 5 (Reuters) - Canada’s Northgate Minerals reported a wider quarterly net loss on lower production and higher costs, and it lowered its full-year production forecast.

For the second quarter, it reported net loss of $13.0 million, or 4 cents a share, compared with net loss of 333,000, or breakeven per share, a year ago.

On an adjusted basis, the company, which has development and exploration projects in Canada and Australia, lost 5 cents a share. Revenue fell 45 percent to $67.4 million.

Gold production declined 36 percent to 43,798 ounces, at an average cash cost of $944 per ounce. In the year-ago quarter, cash cost was $693 per ounce.

For 2011, the company expects total production of 190,000-200,000 ounces at a cash cost of $825-$860 per ounce. It had earlier forecast 2011 production of 195,000-205,000 ounces, at a cash cost of $805-$845 per ounce.

The annual forecast for the Stawell gold mine in southern Australia has been lowered, the company said.

In July, Northgate Minerals said it would buy Primero Mining to enter the Mexican market and boost cash flow to repay its debt. [ID: nL3E7ID27Y]

The Vancouver-based company’s shares closed at C$3.15 on Thursday on the Toronto Stock Exchange. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Viraj Nair)

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