Hi Bob,
Lihir Gold has annual production of 600,000 oz. Latest figures from the quarterly report (Dec 99) are:
PRODUCTION REPORT FOR 4th QUARTER 1999
Release date: 20th January 2000
PRODUCTION
First Q 1999 Second Q 1999 Third Q 1999 Fourth Q 1999 Full Year
Ore processed kt
603 655 841 812 2,911
Average grade g Au/t
7.24 6.93 7.38 6.61 7.04
Gold recovery %
94.7 96.4 94.3 93.0 94.3
Gold poured oz
128,329 142,630 187,867 166,321 625,147
Gold sold oz
127,146 142,065 188,487 159,752 617,450
Average price US$/oz
342 379 352 269 335
Total Cash Cost US$/oz
227 278 184 194 217
1999 annual gold production of 625,147 ounces was 20% up on 1998. During the fourth quarter 166,321 ounces were produced. During November the tailings de-aeration tank was relined, resulting in some loss of output. This apart, operating time and plant performance for the quarter were consistently excellent, with record monthly production achieved during the month of December.
COSTS
Lihir?s financial statements are expected to be available on 25 February 2000. Costs are therefore currently unaudited.
On this basis, Total Cash Cost for the 4th quarter was US$194 per ounce. Costs are stated after inventory
movements, the capitalisation of some stripping and low-grade stockpiling expenses, and before corporate
expenses. Without these adjustments cash costs (unaudited) were US$230 per ounce for the quarter and
US$258 per ounce for the full year. Lihir is continuing to identify ways of reducing costs further.
The low average price realisation during the quarter reflects the deliberate delivery of production into low
price spot deferred hedges, and the number of hedged ounces was reduced. At 31st December the
Company had 2.3 million ounces hedged at an expected average price of US$342 per ounce. Of these 1.3
million ounces were spot deferreds with an average price of US$280 per ounce, and 1.0 million ounces were
in structured hedges, mainly put options and forward contracts, at an average expected price of US$425 per
ounce. The market value of Lihir?s hedgebook at the end of December was about US$85 million. |
