Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold and Silver Mining Stocks -- Ignore unavailable to you. Want to Upgrade?

To: goldsheet who wrote (55)	2/7/2000 5:08:00 AM
From: Aurum	Read Replies (1) \| Respond to of 4051

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.