LGL starts to pay dividends

Lihir Gold Ltd (LGL) will start paying dividends to shareholders, it was announced yesterday.
It will also pay an interim payment of US$0.015 per share, payable on Nov 30.
The dividend has been made possible by increased production, rising cash flows, a healthy balance sheet and a positive outlook for future growth.
The strength of LGL’s position was evident in its third quarter production report, released yesterday, which showed year-to-date gold output for the group of 845,000oz   and a significant 36% upgrade to the reserves on Lihir Island, to 28.8 million ounces.
The company remains firmly on track to achieve its full year production target of one million to 1.2 million ounces, which will mark its fourth successive year of record gold production.
Chief executive Arthur Hood said the decision to initiate dividend payments marked a major milestone in the development of the LGL group, reflecting the strong progress achieved in rebuilding and reshaping the company over the past four years.
 “Improved reliability of production at Lihir Island, combined with the diversified income streams we have created and the fundamental restructuring of our balance sheet over recent years, have all underpinned this decision,” he said.