Taxes and increased sales costs eroded profit for Northgate Minerals Corp. (TSX:NGX) for the year ending December 31, but the Vancouver company boosted revenue and gold production during 2008.
Net income dropped to US$10.7 million from US$39.4 million in 2007 despite a 36% increase in revenue to US$461 million from US$337.5 million.
Future and current income taxes of US$29.6 million dug into the company's bottom line, compared with income tax recovery of US$6 million in 2007.
Last year, Northgate increased gold production 44% to a record 354,800 ounces. The company produced 245,631 ounces in 2007. It sold 311,580 ounces at an average per-ounce price of US$873 in 2008 compared with 259,182 at US$594 in 2007.
Northgate's share price range during the past week: between $1.45 and $1.53; 52-week high: $3.49; 52-week low: $0.67.