🕐30.07.09 - 00:37 Uhr

Record half year gold production for LGL



30 July 2009 Record half year gold production for LGL A strong June quarter has enabled Lihir Gold Limited (LGL) to achieve record half year gold output of 612,000 ounces, compared to 566,000 ounces in the preceding six months. Gold production in the June quarter was the third highest on record for LGL at 294,000 ounces.

This included 219,000 ounces from Lihir Island in Papua New Guinea, 44,000 ounces from Bonikro in C�te dIvoire and 29,000 ounces from Mt Rawdon in Australia. The solid first half performance positions LGL for its fourth successive year of record gold production, in line with its production target of 1.0 - 1.2 million ounces. LGLs flagship Lihir Island operation delivered a record 466,000 ounces for the half year (2H08: 463,000 ounces).

Over the past 12 months, Lihir Island produced a record 929,000 ounces, highlighting the success of operational improvements at the site over recent years.

The Million Ounce Plant Upgrade, which aims to lift production at Lihir Island to more than one million ounces on average from 2012, progressed on schedule and within budget during the second quarter. The Bonikro mine performed strongly in its first full six months of production, with 84,000 ounces of gold poured.

In Queensland the Mt Rawdon operation continued its consistent track record in the first half, with output of 54,000 ounces (2H08: 49,000 ounces). Managing Director Arthur Hood said LGL had achieved significant operational progress in the June quarter, with the company now reaping the benefits of having a diversified portfolio of producing mines. "The Equigold acquisition is proving to be an excellent transaction for the company, bringing immediate increases in production as well as exciting growth opportunities in C�te dIvoire," he said. During the June quarter LGL commenced work on a pre-feasibility study for the construction of a mine at Hir�, located 15 kilometres from the Bonikro plant. "Ore would be trucked to the Bonikro plant for processing, potentially enabling gold production to be increased and extending the life of the Bonikro facility," Mr Hood said. Total cash costs for the LGL group were US$350 per ounce for the first half and US$368 for the June quarter, maintaining the companys global low cost position. For the full year, the company expects to produce 770,000 - 840,000 ounces of gold at Lihir Island, 130,000 - 160,000 ounces at Bonikro, 90,000 - 100,000 ounces at Mt Rawdon and up to 20,000 at Ballarat, with total cash costs for the group forecast to be below US$400 per ounce. "Moving into the second half of 2009, LGL is debt-free, with a strong cash balance and a growing production profile.

Following the closure of the companys hedge book in early July, the LGL group is once again completely unhedged, maximising gold price leverage for our shareholders.

Im confident in our ability to deliver further operating and financial improvements as the year progresses," Mr Hood said. The company will release is half year financial results on 26 August 2009. For further information: Josie Brophy Corporate Communications Manager [cid:image002.jpg@01CA106E.7576D710] Lihir Services Australia Phone: +61 7 3318 3317 Mobile: +61 448 177 502 Website: www.LGLgold.com



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