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Monday, 31st July 2006 (3628 views)

Lihir Gold released much improved figures for its half yearly report, and said that it expected this positive tend to continue over the rest of the year.

Production levels for the last six months stood at 297,000 ounces, while material movements in the second quarter of 2006 reached 11.9 million tonnes, a 33 per cent improvement on the same period last year.

The company is targeting a total of 670,000 ounces of gold produced in 2006 and claims it is on track to reach this total.

Profits for the first half of the year stood at a net total of $23.1 million (US). This compares with a net loss of $20.8 million for the same period of last year. This can be partly attributed to rising market prices for gold. Total revenues are also up by approximately $80 million from a year ago.

After releasing news of this improved performance, the company forecast further development. They expect the grade of the gold produced to rise in the second half (it currently averages 5.17 grams per tonne) and they expect to record new highs in levels of material movement.

Managing director Arthur Hood said that the company are exploring methods aimed at raising production to over one million ounces per year: "Options include more flotation capacity and/or extra autoclaves. The capital cost of any expansion…is expected to range from $200 million to $400 million.

"In the meantime, we continue to make consistent progress in the current quarter, with record production and strongly improved profitability forecast for the second half and the full year."

 

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