Lihir Gold Limited

Lihir Gold Limited

July 08, 2009 06:18 ET

LGL (Lihir Gold Limited) Closes Hedge Book

PORT MORESBY, PAPUA NEW GUINEA--(Marketwire - July 8, 2009) - Lihir Gold Ltd (TSX:LGG)(ASX:LGL)(NASDAQ:LIHR) ("LGL") reports that its gold production is once again completely unhedged, following the closure of the Company's hedge book.

At the end of March 2009, the company had forward sales contracts in place covering 96,000 ounces of gold, to be delivered over the period to September 2010 at a price of A$600 per ounce. These hedging contracts had been put in place by Equigold NL prior to its acquisition by LGL in June 2008.

These contracts were closed-out during the June quarter, eliminating gold hedge commitments for LGL and leaving the company well positioned to benefit from increases in global gold prices. In accordance with hedge accounting requirements, the hedge result will be charged against earnings at the original designation dates. Details of amounts and timing will be provided when the half-year results for the six months to 30 June 2009 are released on 26 August 2009.

"Our shareholders have given us a clear message over recent years that they do not want LGL to hedge its gold production" said CFO Phil Baker. "These transactions leave us ideally placed to capture the full benefits of strong global gold prices as we grow our gold production to more than one million ounces this year," he said.

Contact Information

  • Lihir Gold Ltd (Brisbane)
    Joe Dowling
    GM Corporate Affairs
    07 3318 3308
    Lihir Gold Ltd (Brisbane)
    Joel Forwood
    Manager Investor Relations
    07 3318 3331
    Lihir Gold Ltd (Toronto)
    Greg W Taylor
    (905) 337-7673 / Mobile: (416) 605-5120