Northgate Minerals Comments on Recent Market Activityadmin
Northgate Minerals Corporation 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.