Founded in 1919, Northgate Minerals Corporation is a gold and copper mining company with corporate headquarters in Vancouver, British Columbia. The company lists on the American Stock Exchange under the symbol (NXG). They also list on the Toronto Stock Exchange under the symbol (NGX). They have mining operations, development projects, and exploration properties in Canada and Australia.
With a current market capitalization of $349.96 million, the company has forecast significant unhedged gold production for this year. Their plans for growth in the industry include further acquisition opportunities in politically stable mining regions around the world. On February 18, 2008, Northgate successfully completed their acquisition of Perseverance Corporation Ltd., an Australian gold producer with two operating mines with combined production of 200,000 ounces per year. This made Northgate a multi-mine gold producer, with three operating mines in Canada and Australia.
The company’s Kemess South mine project is in north-central British Columbia. Their Kemess North project is approximately five kilometers north of the Kemess South mine. Northgate’s objective for these two projects for this year is to generate substantial free cash flow.
With their acquisition of Perseverance Corporation Ltd., Northgate acquired two fully permitted operating mines located in Victoria, Australia. These are the Fosterville Gold Mine and the Stawell Gold Mine. The Fosterville Gold Mine is 150 kilometers north of Melbourne. The Stawell Gold Mine is 250 kilometers west of Melbourne.
Northgate’s Young-Davidson project is a gold property in the northern Ontario region of Canada. It is 60 kilometers west of Kirkland Lake. The company’s production for this project is currently scheduled for 2010. This year they are focusing on completing their Preliminary Assessment Report and feasibility study for this project. They are also working to increase their total resource base to approximately three million ounces.
In 2007, Northgate generated cash flow of $125 million, producing 245,631 ounces of gold and 68.1 million pounds of copper. Last year they increased their Young-Davidson total resource base to 2.34 million ounces. They also increased underground-indicated resources there by 137 percent.
This year Northgate focused on converting their Fosterville Mine in Australia to owner mining. They also focused their efforts in this area to improving gold recovery. At their Stawell Mine, they are concentrating on major exploration in numerous in-mine and near-mine targets to extend the mine’s life.
For this year, Northgate’s overall goals are to produce over 400,000 ounces of gold and 64 million pounds of copper. With their experienced management team and strong cash flow from operations, they are positioning themselves for future growth. Northgate’s reputation as one of the finest operators in the business is helping them achieve their own and their shareholder’s goals.
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