Northgate’s quarterly profit fails to offset 6-month loss

While gold production within the Northgate Exploration (TSE) group was up during the first six months of this year, the Toronto-based firm was forced to break out the red ink.

Northgate reported a net loss of $1.1 million or five cents a share in the six months ended June 30, compared to a gain of $547,000 or two cents a share in the same period last year.

Six-month revenue declined to $12 million from $15.9 million in the 1990 period even through gold output climbed to 188,000 oz. from 109,688 oz. during the first half of last year. Northgate attributed the increase to higher output at three mines — the Joe Mann at Chibougamau, Que., the Jamestown mine in California and (former) Colomac mine in the Northwest Territories.

“The decline in net income was principally due to lower investment income which was partially offset by a reduction in expenses,” Northgate said. The Toronto company reported second-quarter earnings of $164,000 or one cent a share on revenues of $6.2 million, compared to a loss of $2.7 million or 13 cents a share on revenues of $5.5 million in the same period last year. Having produced 74,000 oz. this year, before it was shut down in June, Colomac is being held on care and maintenance. The operation is owned by Northgate’s 52% held affiliate NorthWest Gold (AMEX) which reported a first-half loss of $2.6 million or seven cents a share compared to a loss of $1.4 million or four cents a share in the same period last year. NorthWest also had a second-quarter loss of $1.1 million or three cents a share compared to a loss of $923,000 or three cents a share in the same 1990 period.