Lihir mine achieves target

THE Lihir Newcrest Mining Limited’s Lihir operation achieved its 2016 targeted tonnes of gold and copper production, according to managing director and chief executive officer Sandeep Biswas.
In the company’s result for the six months ending Dec 31 last year, Biswas said the mine produced 1.23 million ounces of gold and 49,000 tonnes of copper.
“The Lihir mine in New Ireland achieved its targeted 13 million tonnes per annum milling throughput rate for the December quarter, the Cadia Panel Cave 1 and Panel Cave 2 safely connected, and Cadia East achieved an outstanding throughput rate of 26.4 million tonnes per annum for the December quarter – which exceeds its nameplate capacity,” Biswas, pictured, said.
These maintained the company’s all-in sustaining cost for the group at US$770 (K2,444.43) per ounce and were able to deliver US$258 million (K819m) in free cash-flow during the half year.
“That enabled us to reduce our net debt by a further US$194 million (K615.87m) in the six months thus contributing to a total reduction of our net debt to US$1.8 billion (K5.71bn) over the last two and a half years,” Biswas said.
“This strong financial performance, balance sheet strength and outlook have given the board  confidence to determine to pay an interim dividend of US$7.5 cents per share that follow on from the US$7.5 (K23.80) share paid at the end of the 2016 financial year.”
Meanwhile, the company’s annual mineral resources and ore reserves statement showed Newcrest has an estimated 65 million ounces of gold, or more than 25 years of reserve life, which was a sector leading position.