Lihir gold on track for 1m ounces this year
January 17, 2010
Papua New Guinea based gold miner Lihir Gold Limited (LGL) said it was on track to meet its full-year production guidance of between 1 million and 1.2 million after third quarter production of 233,000 ounces of gold. The company said the cost of mining the gold came in around US$378 per ounce, again on track to meet cost targets of US$400 per ounce over the full year.
Meanwhile Lihir said gold sales totalled 221,000 ounces for the quarter at an average price of US$955 per ounce.
At the company’s flagship Lihir Island gold mine, gold production hit 169,000 ounces, down from the previous quarter though higher than expectations as maintenance work on the mine continues.
Meanwhile Lihir has increased reserves at its Lihir Island operation by 7.5 million ounces, or 36%, taking total ore reserves to 28.8 million ounces at 30 June 2009.
“This outstanding increase in reserves we are announcing today is a reflection of the true world class quality of the Lihir Island ore body, and leads directly to an increase in the value of the project for all LGL shareholders,” Lihir Gold CEO Arthur Hood said.
Management also reaffirmed commitment to its plan to increase production there to 1 million ounces per year from 2012.
At another mine, in the West African country of the Ivory Coast, a more modest 32,000 ounces was produced, however the company said that this could increase to 200,000 per year from neareby mines, “with minimal additional capital investment in the plant.”
Today's quarterly production report was to be Mr Hood's last after he announced his immediate retirement from the company. Mr Hood will walk away with a $3.6 million payout, with another 3.5 million in share rights.
Lihir Gold chief financial officer Phil Baker will step in as interim CEO until a permanent replacement is found.
At the close Friday, Lihir Gold shares were trading at $3.29 each.
Meanwhile Lihir said gold sales totalled 221,000 ounces for the quarter at an average price of US$955 per ounce.
At the company’s flagship Lihir Island gold mine, gold production hit 169,000 ounces, down from the previous quarter though higher than expectations as maintenance work on the mine continues.
Meanwhile Lihir has increased reserves at its Lihir Island operation by 7.5 million ounces, or 36%, taking total ore reserves to 28.8 million ounces at 30 June 2009.
“This outstanding increase in reserves we are announcing today is a reflection of the true world class quality of the Lihir Island ore body, and leads directly to an increase in the value of the project for all LGL shareholders,” Lihir Gold CEO Arthur Hood said.
Management also reaffirmed commitment to its plan to increase production there to 1 million ounces per year from 2012.
At another mine, in the West African country of the Ivory Coast, a more modest 32,000 ounces was produced, however the company said that this could increase to 200,000 per year from neareby mines, “with minimal additional capital investment in the plant.”
Today's quarterly production report was to be Mr Hood's last after he announced his immediate retirement from the company. Mr Hood will walk away with a $3.6 million payout, with another 3.5 million in share rights.
Lihir Gold chief financial officer Phil Baker will step in as interim CEO until a permanent replacement is found.
At the close Friday, Lihir Gold shares were trading at $3.29 each.
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