Because
we’re
different.
We have a portfolio of operating mines and development projects in Canada and Australia and a dedicated and experienced management team with industry-leading expertise and a track record for delivering strong results. We believe these are the keys to sustainable growth and value creation for our shareholders.
Robust.
Proven.
Stable.
Responsible.
Young-Davidson, Ontario, Canada
100% owned property acquired in November 2005. Currently building a financially robust, long-life gold mine in northern Ontario, located approximately 60 kilometres ("km") west of Kirkland Lake. The mine is targeting average annual production of 180,000 ounces per year at a net cash cost of $400 per ounce. The first gold pour is scheduled for 2012.
180,000 oz
$2.0 million
2011 exploration budget in support
of organic reserve growth
Fosterville Gold Mine, Victoria, Australia
100% owned and operated, the Fosterville mine is an underground gold mine that produces approximately 100,000 ounces of gold annually. The mine is located just east of Bendigo, 150 km north of Melbourne and is currently the largest gold producer in the state of Victoria. This year, the mine will produce its half- millionth ounce of gold.
100,000 oz
$3.8 million
2011 exploration budget in support
of organic reserve growth
Stawell Gold Mine, Victoria, Australia
100% owned and operated, the Stawell mine is an underground gold mine located 250 km west of Melbourne. With modern production spanning 27 years, the mine has an excellent track record of resource conversion at 80%. Stawell produced its two millionth ounce of gold in 2010 and is the second largest gold producer in the state of Victoria, behind Fosterville.
88,000 oz
$7.7 million
2011 exploration budget in support
of organic reserve growth
Kemess Underground,
British Columbia, Canada
100% owned property located 430 km northwest of Prince George and
5.5 km from our Kemess South mine. The Kemess Underground project contains an Indicated Resource of 136.5 million tonnes with 2.6 million ounces of gold and 861 million pounds of copper. The Kemess camp is home to existing milling facilities and permitted areas for tailings storage.
2,610,000 oz
860.6 million lbs
Indicated copper resources
Robust production
growth profile.
We are well positioned for long-term sustainable growth, with exciting projects in our development pipeline.
Targeting our first gold pour in late March 2012, the first leg of production will come from a small open pit scheduled to produce approximately 85,000 ounces in 2012 and 135,000 ounces in 2013. Once underground, production is expected to ramp up to approximately 175,000 ounces in 2014 and 220,000 ounces in 2015.
2012
First gold pour; open pit production of 85,000 ounces of gold.
2013
Open pit production of 135,000 ounces of gold.
Average annual gold production of 180,000 ounces over a 15-year mine-life.
In 2011, we will continue to focus on the development of infrastructure for the Harrier orebody. Substantial progress was made in 2010 as the development decline exceeded plan for the year. By the end of last year, the main Harrier ventilation rise was completed. This will help establish primary ventilation and secondary access for the Harrier orebody in the first half of 2011 in preparation for production by mid-year.
The net cash of production at Stawell is also expected to decline significantly from 2010. This year, the net cash cost is forecast to be approximately $800 – $850 per ounce and is expected to further decline to around $650 per ounce in years 2012 and 2013.
A budget of $1.4 million has been allocated in 2011 to fund a variety of technical studies. We expect to complete a Preliminary Assessment by the summer, which will outline the economics and timeline for mining the current resources.
The Kemess Underground project represents significant value for the company: possibly 10 years of additional mining at the Kemess camp, which would add to our robust growing production profile and significantly reduce Northgate's average net cash cost of production.
Since 2000, we have owned and operated the Kemess South mine. Looking back on the journey, our dedicated workforce has transformed Kemess South into one of the most successful mines ever built in Canada.
2.7 million ounces of gold
Kemess South recorded its highest annual gold production of 310,296 ounces in 2006.
700 million pounds of copper
Kemess South recorded its highest annual copper production of 81.2 million pounds in 2006.
$170 per oz life-of-mine cash cost
In 2006 and 2007, the mine recorded a negative cash cost of $56 and $22 per ounce.
50,000 tonnes of ore milled per day
190 million tonnes of ore milled since 2000.
$750 million of free cash flow *
We have generated excellent free cash flow over the past ten years.
50,000 tonnes of ore milled per day
190 million tonnes of ore milled since 2000.
Awards & recognition
Edward Prior Award for Safety (2002)
Edgar A. Scholtz Medal for Excellence in Mine Development (2002)
Citation for Metal Mine Reclamation (2002, 2008 and 2009)
Over two dozen top place finishes in mine rescue competitions (2000–2010)
* Free cash flow is a non-GAAP measure, calculated as cash flow from operations less capital expenditures.
Focused
The gold industry has changed dramatically in recent years. Today's record high gold prices have propelled many new companies onto the scene, eager to take advantage of the present commodity boom. But it's a race: due to the historically cyclical nature of the industry, many need to get to the production stage as quickly as possible before the next downturn hits. Operations with high price tags and soaring costs will be exposed if metal prices fall.
At Northgate, we have taken a different approach. Having been around for awhile, we know what works. Our focus is on operating mines effectively and efficiently. We have the hands-on experience and expertise to ensure success. Granted, success in the gold mining industry is dependent upon several factors. The key is to strive for operational excellence today and for the long-term, so at any point in the commodity cycle, we're still in business and producing gold in a cost-effective manner.
Deliver
While the gold business has changed dramatically over the years, our vision has remained the same: to be a leading intermediate gold producer by building a strong portfolio of profitable, long-life mining mining properties. Committed to our vision, we have been able to create sustainable value for our shareholders and deliver results.
Stable jurisdictions.
Location, location, location. We choose to do business in politically and socially predictable, mining-friendly jurisdictions with historically low regulatory risk.
The right location
We choose to do business in politically and socially predictable, mining-friendly jurisdictions. Our mines and projects are located in the Americas and Australia — areas with a prolific mining history. More importantly, these regions are rich in natural resources, where mining continues to be a significant primary industry.
Risk vs. reward
All business decisions carry risk. It's our job to carefully identify and manage risk while pursuing our objectives. For Northgate, our business approach focuses on operating high-quality assets in mining-friendly jurisdictions. While we applaud the successes of those companies who operate in more challenging regions of the world, that is not our focus. We believe the greatest benefit for our stakeholders, employees and the communities in which we operate is realized by creating sustainable value through disciplined growth and operational excellence — goals that can only be achieved by choosing the right location.
Our Young-Davidson mine is located in northern Ontario; the
province is Canada's leading producer of gold, accounting for
over half of the national total. The region is attractive because
of its excellent infrastructure, safety and low development costs.
The site is accessible by paved highways and roads and is
situated only a short distance from the town of Matachewan,
where there is enthusiastic support for the project.
History paying dividends
The old adage remains true: the best place to find new gold is
where gold has already been found. Today, the next generation
of gold discoveries is benefiting from newer technology to detect
deeper deposits, making it worthwhile to take a fresh look at
previously mined areas. Along with technological advances, we
have the added benefit of record gold prices. This provides an
opportunity for companies to turn old mineral properties into
new mines provided they have the vision and expertise to
make it work. And we do.
Approximately 60 km west of Kirkland Lake, Young-Davidson
is located in the gold-rich Abitibi greenstone belt. The Abitibi
is one of the largest greenstone belts in the world and has
generated tremendous dividends: 160 million ounces of gold,
of which the Kirkland Lake gold camp is the second largest
contributor. At Young-Davidson, mining during the 1930s to
1950s generated gold production of one million ounces.
Choosing the right location is integral in any business. While we consider the political and social climate of our jurisdictions, we have an additional advantage of operating in areas with a proven history of multi-million ounce gold discoveries. And as history has a way of repeating itself, we are confident that we will benefit from past performance and will continue to yield new discoveries, paying significant dividends.
Responsible mining practices.
At Northgate, we value honesty, accountability, transparency and teamwork above all else. These values drive our planning and decision making at every stage of the business — from exploration to operation and to eventual closure of the mine. Except it's not only about the mining; we strive for excellence in creating a safe workplace, minimizing our environmental footprint and contributing to the communities we operate in.
And we've been pretty good at what we do.
2009 Reclamation Citation awarded to Kemess South
For the second year in a row, Kemess South was awarded the Metal Mining Reclamation Citation
from the BC Technical & Research Committee for outstanding achievements in reclamation at a
metal mine in British Columbia.
Mine Rescue Competition won by Stawell
The Stawell Gold Mine Emergency Response Team took home first place at the 18th Annual Victorian Mine
Rescue Competition. This is Stawell's ninth win in the past 18 years.
Development & Closure Plan accepted for Young-Davidson
Sets out the framework for the development, operation and ultimate closure of the Young-Davidson mine.
In-pit tailings storage granted for Fosterville
First government approval granted for a gold mine in Victoria, allowing for the use of in-pit tailings storage.
At Northgate, we work diligently with our employees, their families and the local communities in which we operate to improve the quality of life in a way that is both good for local economic development and our stakeholders. Sound environmental practices are a priority in the design and operation of our facilities through all phases of the mining life cycle.
Minimizing our footprint
Our objective is to minimize our environmental footprint
through implementing environmentally responsible
practices through all phases of the mine-life cycle and
to provide protection for the environment today and for
future generations. We view effective management of the
environmental effects of our operations as critical to our
success as an organization.
Making safety our top priority
Creating a safe workplace for all our employees is a core value at
Northgate. As an organization, we work to establish and maintain
standards, procedures and management controls to ensure that
appropriate health and safety considerations are integrated into
all aspects of our business in order to minimize workplace risks.
Vision
To be the leading intermediate gold producer by identifying, acquiring, developing and operating profitable, long-life mining properties.
Mission
We create sustainable value for our stakeholders, including our shareholders, our employees and the communities in which we operate, through disciplined growth and operational excellence while maintaining a safe workplace for employees and protecting the environment.
Values
We value honesty, accountability, transparency and teamwork above all else. These values guide all aspects of our decision making, the manner in which we conduct our operations, our choice of business partners and how we develop, pursue and assess our strategic objectives.
Business Arenas
We will continue to pursue our objectives in politically and socially predictable, mining-friendly jurisdictions with historically low regulatory risk. Our principal focus will continue to be on gold, gold/copper and gold/silver mines and projects.
Objectives
Northgate's Board of Directors approves the Corporation's strategic plan, including shorter-term objectives, on an annual basis and, together with the Corporation's executive officers, continually reviews the strategic plan and monitors the Corporation's progress towards achievement of its objectives.
Message to Shareholders
