VANCOUVER, B.C. - Northgate Minerals Corp. (TSX:NGX) said Tuesday the writedown of the value of an Australian gold mine was a major factor in the losses booked during the full year and fourth quarter of 2009.
The Vancouver-based miner, which keeps its books in U.S. dollars, reported a loss of US$67.8 million or 23 cents per share for the quarter ended Dec. 31, reversing year-earlier profits of $18.6 million or seven cents per share.
Quarterly revenue declined to $110.7 million from $136.7 million recorded in the corresponding quarter of 2008.
Losses for fiscal 2009 totalled $49.5 million or 19 cents per share, reversing from net earnings of $10.7 million or four cents a share booked the year before. Full-year revenue rose to $485 million from year levels of $461 million.
Northgate, attributed much of its fourth-quarter and full-year losses to a non-cash impairment charge of $83.5 million on its Fosterville Gold mine, as well as a negative mark-to-market hedging adjustment of $15.1 million on the company's copper forward sales contracts.
Northgate reported fourth-quarter production of 80,753 ounces of gold and 11.8 million pounds of copper.
"The strong operating and financial results delivered from our mines in the fourth quarter allowed Northgate to post record annual gold production and generate record annual cash flow from operations in 2009," Northgate president Ken Stowe said in a statement.
Full-year gold production reached a record of 362,398 ounces.