November 3, 2009 / 1:10 PM / 8 years ago

UPDATE 1-Northgate posts 3rd-qtr operating profit

* Excluding items, Q3 EPS $0.03 vs yr-ago loss of $0.11

* Q3 revenue up 21 pct to $120.2 mln (All figures in U.S. dollars)

TORONTO, Nov 3 (Reuters) - Canada’s Northgate Minerals Corp NGX.TO reported a third-quarter operating profit on Tuesday due to a 25 percent increase in gold production and a higher realized price for the precious metal.

Excluding one-time items, the Vancouver-based company said it earned $7.7 million, or 3 cents a share, compared with a year-ago loss of $28.4 million, or 11 cents a share.

On a net basis, the company posted a loss of $8.6 million, or 3 cents a share, down from a net loss of $29.4 million, or 12 cents a share, in the corresponding quarter of 2008.

Quarterly revenue rose 21 percent to $120.2 million.

The company, which has operations in Canada and Australia, trimmed its 2009 gold production forecast to 365,000 ounces at a net cash cost of $493 per ounce, due to lower production at its Stawell and Fosterville mines in Australia. It had earlier forecast production of 382,500 ounces of gold at a net cash cost of $440 per ounce.

Northgate said the higher cash costs estimate is due to the stronger Canadian and Australian dollar relative to the U.S. dollar and declining ore reserves at its Kemess mine in the Canadian province of British Columbia. (Reporting by Euan Rocha, editing by Dave Zimmerman)

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