Northgate Minerals Comments on Recent Market Activity
NGX - TSX
NXG - NYSE ALTERNEXT
VANCOUVER, Dec. 22 /CNW/ - Northgate Minerals Corporation (TSX: NGX, NYSE
ALTERNEXT US/AMEX: NXG) today commented on the large trading volume of the
Company's shares and subsequent share price decline, which took place during
market trading hours on Friday, December 19, 2008, on both the Toronto Stock
Exchange and the NYSE Alternext. The company believes that the noted market
activity was due to its deletion from the S&P/TSX Composite Index, resulting
in a large sell-off by index-based investment funds. As part of its quarterly
review, the S&P/TSX Composite Index announced the removal of more than 20
companies from its index, effective after the close of trading on Friday,
December 19.
Northgate believes that the current share price is considerably
undervalued and does not reflect the recent and significant developments of
the company, which includes the doubling of its gold resource base to over 4.0
million ounces at the Young-Davidson property, the 18-month mine-life
extension at the Stawell Gold Mine and the dramatic improvement of operations
at the Fosterville Gold Mine, which is expected to contribute to the record
quarterly gold production in the fourth quarter.
Northgate Minerals Corporation is a mid-tier gold and copper producer
with mining operations, development projects and exploration properties in
Canada and Australia. The company is forecasting approximately 365,000 ounces
of unhedged gold production in 2008 and is targeting growth through further
acquisition opportunities in stable mining jurisdictions around the world.
Northgate is listed on the TSX under the symbol NGX and on the NYSE Alternext
US (formerly AMEX) under the symbol NXG.
Forward-Looking Statements:
This news release contains certain "forward-looking statements" and
"forward-looking information" under applicable Canadian and U.S. securities
laws. Forward-looking statements generally can be identified by the use of
forward-looking terminology such as "may," "will," "expect," "intend,"
"estimate," "anticipate," "believe," or "continue" or the negative thereof or
variations thereon or similar terminology. Forward-looking statements are
necessarily based on a number of estimates and assumptions that are inherently
subject to significant business, economic and competitive uncertainties and
contingencies. Certain of the statements made herein, including any
information as to the future activities of and developments related to the
business activities of Northgate Minerals Corporation (Northgate) and its
subsidiaries, the market position, and future financial or operating
performance of Northgate, are forward-looking and subject to important risk
factors and uncertainties, many of which are beyond the corporation's ability
to control or predict. Known and unknown factors could cause actual results to
differ materially from those projected in the forward-looking statements. Such
factors include, among others: gold price volatility; impact of any hedging
activities, including margin limits and margin calls; discrepancies between
actual and estimated production, between actual and estimated reserves and
resources and between actual and estimated metallurgical recoveries; costs of
production, capital expenditures, costs and timing of construction and the
development of new deposits, success of exploration activities and permitting
time lines; changes in national and local government legislation, taxation,
controls, regulations and political or economic developments in any of the
countries in which the corporation does or may carry out business in the
future; risks of sovereign investment; the speculative nature of gold
exploration, development and mining, including the risks of obtaining
necessary licenses and permits; dilution; competition; loss of key employees;
additional funding requirements; and defective title to mineral claims or
property. In addition, there are risks and hazards associated with the
business of gold exploration, development and mining, including environmental
hazards, industrial accidents, unusual or unexpected formations, pressures,
cave-ins, flooding and gold bullion losses (and the risk of inadequate
insurance or inability to obtain insurance, to cover these risks), as well as
the factors described or referred to in the section entitled "Risk Factors" in
Northgate's Annual Information Form for the year ended December 31, 2007 or
under the heading "Risks and Uncertainties" in Northgate's 2007 Annual Report,
both of which are available on SEDAR at www.sedar.com, and which should be
reviewed in conjunction with this document. Accordingly, readers should not
place undue reliance on forward-looking statements. The corporation does not
undertake any obligation to update publicly or release any revisions to
forward-looking statements to reflect events or circumstances after the date
of this document or to reflect the occurrence of unanticipated events, except
in each case as required by law.
For further information: Ms. Keren R. Yun, Director, Investor Relations, Tel:
(416) 363-1701 ext. 233, Email: ngx@northgateminerals.com; Website:
www.northgateminerals.com
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Northgate Minerals Corporation
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PRODUCER |
CODE : NGX.TO |
ISIN : CA6664161024. |
CUSIP : 666416102 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Northgate Minerals is a gold and copper producing company based in Canada. Northgate Minerals develops gold, copper and silver in Canada, and holds various exploration projects in Canada. Its main assets in production are STAWELL MINE and FOSTERVILLE MINE in Australia and KEMESS SOUTH in Canada, its main asset in development is YOUNG - DAVIDSON in Canada and its main exploration properties are BOULEVARD, KEMESS UNDERGROUND, MATACHEWAN MINE and AWAKENING GOLD in Canada. Northgate Minerals is listed in Canada. Its market capitalisation is CA$ 943.3 millions as of today (US$ 928.4 millions, € 655.4 millions). Its stock quote reached its lowest recent point on January 28, 2000 at CA$ 0.60, and its highest recent level on May 12, 2006 at CA$ 5.29. Northgate Minerals has 254 245 479 shares outstanding. |