Lihir Gold releases Quarterly Report
2008-10-28 07:28:00+10:00
Lihir Gold [ASX:LGL] has published it's Quarterly Report to the ASX. making a formal announcement entitled 'Third Quarter Production Report' published on Tuesday 28 October 2008. The report begins ... LIHIR GOLD LIMITED ARBN 069 803 998 Incorporated in Papua New Guinea Production Report Third QuarTer 2008 28 October 2008 (Quarterly report for the three months ended 30 September 2008. ... Lihir Gold has issued similar announcements 28 times before, most recently about 0 minutes ago on Monday 26 May 2008. The share price for Lihir Gold was $1.570 trending down at the time of the announcement. [Notice Type: Company Reports - Quarterly]
2008-10-28 07:28:00+10:00
Lihir Gold [ASX:LGL] has published it's Quarterly Report to the ASX. making a formal announcement entitled 'Third Quarter Production Report' published on Tuesday 28 October 2008. The report begins ... LIHIR GOLD LIMITED ARBN 069 803 998 Incorporated in Papua New Guinea Production Report Third QuarTer 2008 28 October 2008 (Quarterly report for the three months ended 30 September 2008. ... Lihir Gold has issued similar announcements 28 times before, most recently about 0 minutes ago on Monday 26 May 2008. The share price for Lihir Gold was $1.570 trending down at the time of the announcement. [Notice Type: Company Reports - Quarterly]
Third Quarter Production Report
Tuesday 28 Oct 2008
LIHIR GOLD LIMITED ARBN 069 803 998 Incorporated in Papua New Guinea
Production Report
Third QuarTer 2008
28 October 2008
(Quarterly report for the three months ended 30 September 2008. All dollar figures refer to US dollars.)
Group Overview • Group gold production for the quarter was a record 250,000 oz, up 41% on the previous three months to June. • Transition to multi-mine operation achieved following completion of Equigold merger in June: Production Summary (Ozs, Attributable to LGL) Operation Lihir Island, PNG Mt Rawdon, Qld Kirkalocka, WA Ballarat, Vic Total Sept Quarter 216,371 23,838 7726 2176 250,110 June Quarter 169,693 5088 1716 614 177,111
Outlook • Group production in 2008 is expected to be approximately 850,000 oz, in line with previous guidance. • Total cash costs per ounce for the full year expected to be approximately $400-420/oz.
• Total Cash Costs for the group of $412/oz, which continues to position the company at the lower end of the global gold production cost curve. • Average realised cash gold price of $847/oz. • Expansion projects and development proceeding: – Bonikro (Ivory Coast) poured first gold October 6. – Ballarat production ramping up in fourth quarter. – Lihir Island Million Ounce Plant Upgrade proceeding on budget and on schedule.
Third Quarter Production Report to 30 Sept 2008 Page 1 of 11
LGL has made excellent progress in the third quarter and remains on track towards achieving its group production target of 850,000 ounces for the full year.
Page 2 of 11
Managing Director’s Review
The LGL Group successfully completed its transition to a multi-mine operation in the third quarter of 2008, leading to record quarterly gold production of 250,000 ounces, up 41% on the preceding three months to June. Significant production was sourced from operations in PNG and Australia, confirming the progress the company has made in diversifying revenues and reducing single mine risk, while at the same time adding significant growth potential. Importantly, the increase in production also reflected a strong improvement in performance at the cornerstone asset of Lihir Island, which produced 216,371 ounces in the quarter, compared with 170,000 oz in the three months to the end of June. This was supplemented by contributions from Mt Rawdon in Queensland (23,838 oz) and Kirkalocka in Western Australia (7726 ozs), which became part of the LGL group from the completion of the Equigold merger in June. Meanwhile, at Ballarat in Victoria, ore production from underground stopes commenced in August, enabling preliminary processing of low grade material in the quarter, producing 2176 ozs of gold. In addition to the strong production outcome, good progress was made in project development at Bonikro, in Ivory Coast, which poured its first gold on October 6, and at Lihir Island, where work advanced on the Million Ounce Plant Upgrade project. The excellent results achieved in the third quarter confirm the progress the LGL group has made in executing its strategy of building on the rich Lihir Island deposit to create a major, diversified gold producer, with a portfolio of high quality, low cost assets delivering consistent performance and exciting growth potential.
Costs continued to rise across the industry in the quarter, with average total cash costs for the gold mining sector estimated to be approximately $450/oz. Unit costs at LGL, while relatively low by industry standards, were higher than plan, with the main increases felt in power generation costs, diesel costs and maintenance. A moderation in the Australian dollar/US dollar exchange rate had a minor positive impact on costs in the quarter.
Outlook Full year production in 2008 is expected to be approximately 850,000 ozs. This will include record production of more than 700,000 oz from Lihir Island, approximately 40,000 oz from Bonikro, 50,000 oz from Mt Rawdon and 9400 oz from Kirkalocka. Delays in underground development at Ballarat have reduced expected production this year to around 20,000 oz, although this will increase in 2009 as production areas are opened and ore drives access higher grade zones. Unit costs are forecast to be in the region of $400–420 per ounce, which is higher than initially forecast due to cost pressures across the industry during the year to date. Declining diesel prices and the reduction in the Australian dollar exchange rate in the fourth quarter, if sustained, should help to alleviate some cost pressures in the future. Overall, the company has made excellent progress in the third quarter and remains on track towards achieving stated group production targets. The fourth quarter promises to be an exciting period for the company, with Bonikro in full production for the quarter, and Ballarat ramping up mining rates and gold production. I look forward to reporting further good progress when we release our Fourth Quarter production report in January.
Financial Overview Operating margins in the third quarter remained healthy. Gold sales totalled 237,420 ounces, at an average realised cash gold price of $847/oz, while total cash costs averaged $412 an ounce (excluding Ballarat, which remains in preproduction).
ARTHUR HOOD
Managing Director
Third Quarter Production Report to 30 Sept 2008 Page 3 of 11
Operations
PRODUCTION STATISTICS
Sept Quarter 2008 June Quarter 2008 March Quarter 2008 Dec Quarter 2007 Sept Quarter 2007 Change Sept 08 From Jun 08 (%) 48 -22 0 4 2 27 0 28
Lihir island Mining High grade ore Economic grade ore Material moved Processing Ore milled Autoclave feed Autoclave grade Recovery Gold poured Mt rawdon* Mining Processing Ore mined Ore milled Head grade Recovery Gold poured Attributable to LGL Kirkalocka* Processing Ore milled Head grade Recovery Gold poured Attributable to LGL Ballarat U/g development Gold poured Kt g Au/t % Oz Oz M Oz 150 1.26 89.0 7,726 7,726 1,552 2,176 250,110 362 1.13 91.7 12,039 1,716 1,373 614 374 1.02 91.8 10,709 0 930 663 354 0.99 89.1 9,840 0 702 ...
Tuesday 28 Oct 2008
LIHIR GOLD LIMITED ARBN 069 803 998 Incorporated in Papua New Guinea
Production Report
Third QuarTer 2008
28 October 2008
(Quarterly report for the three months ended 30 September 2008. All dollar figures refer to US dollars.)
Group Overview • Group gold production for the quarter was a record 250,000 oz, up 41% on the previous three months to June. • Transition to multi-mine operation achieved following completion of Equigold merger in June: Production Summary (Ozs, Attributable to LGL) Operation Lihir Island, PNG Mt Rawdon, Qld Kirkalocka, WA Ballarat, Vic Total Sept Quarter 216,371 23,838 7726 2176 250,110 June Quarter 169,693 5088 1716 614 177,111
Outlook • Group production in 2008 is expected to be approximately 850,000 oz, in line with previous guidance. • Total cash costs per ounce for the full year expected to be approximately $400-420/oz.
• Total Cash Costs for the group of $412/oz, which continues to position the company at the lower end of the global gold production cost curve. • Average realised cash gold price of $847/oz. • Expansion projects and development proceeding: – Bonikro (Ivory Coast) poured first gold October 6. – Ballarat production ramping up in fourth quarter. – Lihir Island Million Ounce Plant Upgrade proceeding on budget and on schedule.
Third Quarter Production Report to 30 Sept 2008 Page 1 of 11
LGL has made excellent progress in the third quarter and remains on track towards achieving its group production target of 850,000 ounces for the full year.
Page 2 of 11
Managing Director’s Review
The LGL Group successfully completed its transition to a multi-mine operation in the third quarter of 2008, leading to record quarterly gold production of 250,000 ounces, up 41% on the preceding three months to June. Significant production was sourced from operations in PNG and Australia, confirming the progress the company has made in diversifying revenues and reducing single mine risk, while at the same time adding significant growth potential. Importantly, the increase in production also reflected a strong improvement in performance at the cornerstone asset of Lihir Island, which produced 216,371 ounces in the quarter, compared with 170,000 oz in the three months to the end of June. This was supplemented by contributions from Mt Rawdon in Queensland (23,838 oz) and Kirkalocka in Western Australia (7726 ozs), which became part of the LGL group from the completion of the Equigold merger in June. Meanwhile, at Ballarat in Victoria, ore production from underground stopes commenced in August, enabling preliminary processing of low grade material in the quarter, producing 2176 ozs of gold. In addition to the strong production outcome, good progress was made in project development at Bonikro, in Ivory Coast, which poured its first gold on October 6, and at Lihir Island, where work advanced on the Million Ounce Plant Upgrade project. The excellent results achieved in the third quarter confirm the progress the LGL group has made in executing its strategy of building on the rich Lihir Island deposit to create a major, diversified gold producer, with a portfolio of high quality, low cost assets delivering consistent performance and exciting growth potential.
Costs continued to rise across the industry in the quarter, with average total cash costs for the gold mining sector estimated to be approximately $450/oz. Unit costs at LGL, while relatively low by industry standards, were higher than plan, with the main increases felt in power generation costs, diesel costs and maintenance. A moderation in the Australian dollar/US dollar exchange rate had a minor positive impact on costs in the quarter.
Outlook Full year production in 2008 is expected to be approximately 850,000 ozs. This will include record production of more than 700,000 oz from Lihir Island, approximately 40,000 oz from Bonikro, 50,000 oz from Mt Rawdon and 9400 oz from Kirkalocka. Delays in underground development at Ballarat have reduced expected production this year to around 20,000 oz, although this will increase in 2009 as production areas are opened and ore drives access higher grade zones. Unit costs are forecast to be in the region of $400–420 per ounce, which is higher than initially forecast due to cost pressures across the industry during the year to date. Declining diesel prices and the reduction in the Australian dollar exchange rate in the fourth quarter, if sustained, should help to alleviate some cost pressures in the future. Overall, the company has made excellent progress in the third quarter and remains on track towards achieving stated group production targets. The fourth quarter promises to be an exciting period for the company, with Bonikro in full production for the quarter, and Ballarat ramping up mining rates and gold production. I look forward to reporting further good progress when we release our Fourth Quarter production report in January.
Financial Overview Operating margins in the third quarter remained healthy. Gold sales totalled 237,420 ounces, at an average realised cash gold price of $847/oz, while total cash costs averaged $412 an ounce (excluding Ballarat, which remains in preproduction).
ARTHUR HOOD
Managing Director
Third Quarter Production Report to 30 Sept 2008 Page 3 of 11
Operations
PRODUCTION STATISTICS
Sept Quarter 2008 June Quarter 2008 March Quarter 2008 Dec Quarter 2007 Sept Quarter 2007 Change Sept 08 From Jun 08 (%) 48 -22 0 4 2 27 0 28
Lihir island Mining High grade ore Economic grade ore Material moved Processing Ore milled Autoclave feed Autoclave grade Recovery Gold poured Mt rawdon* Mining Processing Ore mined Ore milled Head grade Recovery Gold poured Attributable to LGL Kirkalocka* Processing Ore milled Head grade Recovery Gold poured Attributable to LGL Ballarat U/g development Gold poured Kt g Au/t % Oz Oz M Oz 150 1.26 89.0 7,726 7,726 1,552 2,176 250,110 362 1.13 91.7 12,039 1,716 1,373 614 374 1.02 91.8 10,709 0 930 663 354 0.99 89.1 9,840 0 702 ...
