Gold and Silver Juniors, Mid-tiers and Producers Message Board

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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers

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To: tyc:> who wrote (67096)	9/11/2009 9:16:41 AM
From: loantech	1 Recommendation Read Replies (2) of 78419

Tyke I added back some NXG twice this past week or so. Northgate Minerals Corporation (NXG) is a small-cap, Canadian mining stock. With a market capitalization of nearly $700 million, the share price of NXG is closely tied to gold. NXG is a leveraged bet on rising gold prices. Northgate currently forecasts record production of 380,000 ounces of gold in 2009. With production spread between three operational mines in Australia and Canada, their risk is well-diversified. Senior management recently estimated production levels of 206,500 ounces of gold from the Fosterville & Stawell gold mines alone this year. These 2008 acquisitions are already paying off. After implementing a successful operational overhaul, Northgate expects a $100+ million net payday in 2009 just from these mines (at current prices). Northgate produces copper as well, harvesting 51.9 million pounds of copper in 2008. Spot copper prices have been climbing, and we like Northgate’s potential as copper continues its tear up the charts. Others seem to agree. Like gold, Northgate shares bottomed late last year. But unlike gold, NXG has jumped more than 400% since then. A combination of production improvements and underlying commodity prices have moved NXG to a dizzying $2.75. If gold continues to rise, we see NXG going along for the ride and then some. seekingalpha.com

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