Lihir Gold Limited
ASX : LGL
NASDAQ : LIHR
TSX : LGG

Lihir Gold Limited

April 30, 2009 06:30 ET

LGL's (Lihir Gold) First Quarter Fiscal 2009 Production Report

Results to March 31, 2009 include Third Successive Quarter of Record Output

PORT MORESBY, PAPUA NEW GUINEA--(Marketwire - April 30, 2009) - Lihir Gold Ltd (TSX:LGG)(ASX:LGL)(NASDAQ:LIHR) ("LGL") is pleased to announce the release of its production results for the three month period ended March 31, 2009.

In summary, the Company has achieved a third successive quarter of record output in the March quarter, producing 318,000 ounces of gold from its four operations. The first quarter result leaves the company well on track to achieve its stated 2009 production target of 1.04 - 1.2 million ounces, which will be LGL's fourth successive year of record gold output. It also confirms the success of the company's diversification and growth strategy implemented over the past two years.

The cornerstone Lihir Island operation in Papua New Guinea continued to perform strongly in the March quarter, producing 247,000 ounces. The Bonikro mine in Cote d'Ivoire delivered 40,100 ounces, up 9% on its maiden quarter in December 2008. Mt Rawdon in Queensland produced a steady 25,500 ounces in line with expectations, and Ballarat in Victoria produced 5,700 ounces.

LGL Managing Director Mr Arthur Hood said the record March quarter had taken LGL past one million ounces for the preceding 12 months, which was a clear indicator of the group's strengthened performance.

"LGL's excellent first quarter can be attributed to a culmination of operational improvements at Lihir Island and initial delivery from the diversification and growth strategy we've implemented over the past years," Mr Hood said.

"We have now firmly established the company as a diversified global gold producer with a portfolio of high quality, low-cost assets and exciting growth potential." LGL continued to maintain its global low cost position during the first quarter, with a standout unit cost result of US$303 per ounce from Lihir Island, down 16% on the prior quarter.

For the full year, the company expects to produce 770,000 - 840,000 ounces of gold at Lihir Island, 130,000 - 160,000 ounces at Bonikro, 90,000 - 100,000 ounces at Mt Rawdon and up to 50,000 at Ballarat, with total cash costs for the group forecast to be below US$400 per ounce.

Documents providing further detail relating to these results, including the "First Quarter 2009 Production Report" and the "Presentation - First Quarter 2009 Production Results," will be available on SEDAR shortly at (http://www.sedar.com) and on the Company's website: www.LGLgold.com. Also, a recording of the Company's discussion of these results is available on LGL's website.

Contact Information

  • Lihir Gold Ltd (Brisbane)
    Joe Dowling
    GM Corporate Affairs
    Mobile: 0421 587 755
    or
    Lihir Gold Ltd (Toronto)
    Greg W Taylor
    (905) 337-7673 or Mobile: (416) 605-5120
    gtaylor@g-tinvestorrelations.com