Australia’s Lihir Gold expects ’09 output to hit 1Moz
miningweekly.com
By: Esmarie Swanepoel
30th July 2009
JOHANNESBURG (miningweekly.com) – ASX-listed gold miner Lihir Gold (LGL), which operates mines in Papua New Guinea (PNG), Côte d’Ivoire and Australia, on Thursday reported an 8% increase in interim production.
LGL recorded record half-year gold output of 612 000 oz, compared with the 566 000 oz reported in the previous interim period.
The company said in a statement that gold production in the June quarter was the third highest on record at 294 000 oz. This included 219 000 oz from its flagship Lihir Island mine in PNG, 44 000 oz from Bonikro in Côte d’Ivoire and 29 000 oz from Mount Rawdon in Australia.
“The solid first half performance positions LGL for its fourth successive year of record gold production,” the company said in a statement, reaffirming its full-year production guidance of between one-million ounces and 1,2-million ounces.
LGL expects to produce between 770 000 oz and 840 000 oz of gold at Lihir Island, between 130 000 oz and 160 000 oz at Bonikro, between 90 000 oz and 100 000 oz at Mount Rawdon and up to 20 000 oz at Ballarat.
The Lihir Island operation delivered a record 466 000 oz in the first half of the year, and a record 929 000 oz over the past 12 months.
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, LGL reported.
Meanwhile, the Bonikro mine performed strongly in its first full six months of production, with 84 000 oz of gold poured. In Queensland, the Mount Rawdon operation continued its consistent track record in the first half, with output of 54 000 oz.
LGL MD Arthur Hood said that the company had achieved significant operational progress in the June quarter.
“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 Côte d’Ivoire,” he said.
During the June quarter, LGL started work on a prefeasibility study for the construction of a mine at Hiré, located 15 km 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,” Hood said.
“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 company’s hedge book in early July, the LGL group is once again completely unhedged, maximising gold price leverage for our shareholders. I’m confident in our ability to deliver further operating and financial improvements as the year progresses,” Hood said.
The company will release is half year financial results on August 26. |
