Golden profit for Lihir (2/2)

Written on the 10 March 2009

by Jason Oxenbridge
 

BRISBANE-based Lihir Gold Limited (LGL) has unearthed record profit of $109.3 million (Y/E 2008) with managing director Arthur Hood describing the gold market as a ‘true flight to quality’.
Record gold production and rising gold prices have enabled the company to report a 54 per cent increase ands its third successive year of record production, at 882,000 ounces, an increase of 26 per cent from 2007.
Hood attributes the increase to significantly higher output at the cornerstone Lihir Island operation in PNG and because of the inclusion of production from the Bonikro mine in Cote d’Ivoire and the Mt Rawdon mine in Queensland. The mines were acquired by LGL as part of its acquisition of Equigold NL in June 2008.
Revenues increased by 52 per cent to a record $1.79 billion, driven by a 23 per cent increase in gold sales volume and a 29 per cent rise in the gold price. For the full year 868,927 ounces of gold were sold at an average cash price of $1326 an ounce, up from $1039 an ounce in 2007.
Despite a mining halt at its Lihir mine in PNG due to landowner disputes last year, the company resumed mining on January 30 and is this year anticipating record gold output from Lihir Island at between 770,000 and 840,000 ounces.
“The result is not just a function of price, but volume,” says Hood.
 “Going into 2009, LGL’s financial position is very secure. We have healthy operating cash flows and widely diversified revenue and production sources. The company has a strong foundation to enable future investment in growth opportunities and to deliver maximum value for shareholders.”
In 2009 group-wide gold production is forecast to increase by more than 10 per cent to in excess of one million ounces. Falling oil prices and favourable exchange rate movements are expected to drive a reduction in total cash costs in 2009 to less than US$400 per ounce.
Hood says he is happy for the gold price to stay ‘exactly where it is’ in a volatile market where $50 per ounce fluctuations are possible.
“In 2008 we firmly established LGL as a global gold producer with growing production and exciting exploration opportunities. I’m confident the next 12 months will see a continuation in the group’s exciting growth journey,” says Hood.
The company has also completed an institutional placement of new fully paid ordinary shares to raise around US$325 million.

Latest News

2017 BRISBANE TOP COMPANIES REVEALED

WHILE Queensland is regarded as an economy in transition with the winding down of the mining boom, the 2017 top 50...

2017 BRISBANE TOP COMPANIES 1-10

FROM insurance and banking to travel, gambling, retail, property and pizza, these "heavyweights" have ha...

2017 BRISBANE TOP COMPANIES 11-20

RETAIL, property, an airline, cars, real estate, software services, energy, agriculture, veterinary services bathr...

2017 BRISBANE TOP COMPANIES 21-30

JEWELLERS Michael Hill International listed in 2016 with a half-billion dollar market capitalisation and a new CEO...

Related News

FURNITURE DISRUPTOR SET TO SHARE HIS ONE OF A KIND BUSINESS MODEL

IT'S no secret that Australians love homemaking. Their ceaseless quest to create the perfect place to call hom...

WEEDING OUT THE ASX'S BURGEONING CANNABIS TREND: 8 COMPANIES TO WATCH

A NICHE is budding on the ASX in the form of medical cannabis, an industry which has been on the country's rad...

FRESH CLASS ACTION TO REVEAL ANOTHER SIDE OF SLATER AND GORDON DOWNFALL

ACA LAWYERS has issued a formal letter of demand to Andrew Grech (pictured), managing director of Slater and Gordo...

STARSHIPS WERE MEANT TO DELIVER DOMINO'S PIZZA

NICKI Minaj may have been off the mark when she declared 'starships were meant to fly'. However, she m...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter