LGL to top 1m oz

Business, Main Stories

LIHIR Gold LTD (LGL) is on track to achieve record full-year production of more than one million ounces.
Meanwhile, gold sales totalled 221,000oz for the quarter, at an average realised cash price of US$955/oz (K2,550/oz), up from US$900/oz (K2403.20/oz) in the three months to June. For the nine months to the end of last month, 834,000oz were sold at an average price of US$906/oz.
Gross cash margins for the year to date were healthy at US$421/oz (K1,124.17/oz), excluding Ballarat mine
According to the company’s third quarter production report released yesterday, managing director Authur Hood reiterated the company was still on track to meet targets for the year.  He, however, said its Ballarat mine was not performing as expected, He said they were confident of achieving record full production of more than one million ounces and this would include production of 770,000 – 840,000oz from Lihir Island, approximately 130-160,000oz from Bonikro and 90-100,000oz from Mt Rawdon.
The full year contribution from Ballarat was expected to be approximately 14,000oz.
On Lihir Island, total output was 169,000oz, Mr Hood said.
While production at Lihir was lower than the previous quarter, this was due to routine plant maintenance which had been scheduled for the third quarter. Production for the quarter was above guidance, with plant throughputs exceeding plan and again demonstrating the steep change in performance achieved in recent years. In Côte d’Ivoire, Mr Hood said production at the Bonikro operation totalled 32,000oz for the quarter, which was down on the prior quarter due to the transitioning of mining and processing from oxide ore to fresh, hard rock.
This resulted in reduced mill throughputs in the quarter as refinements were being made to the process plant operations to cope with the different ore characteristics.
In Australia, the Mount Rawdon operation in Queensland lifted output to 30,400oz during the quarter, maintaining its consistent track record.
Mr Hood said at Ballarat, the process for the sale of the operation proceeded, with a number of attractive indicative offers received to date.
The sale should be completed early in the New Year, he said.