restructuring woes, page-2

You're right, but my ML broker report thats literally 10 minutes old seems more reassuring. To take a few excerpts...

[b]Solid result [/b]

Operating profit (including hedges) rose 55% to US$47.4M (ML US$43.1M).

Headline loss was US$53.4M (ML $39.4M), reflecting a one-off A$117.9M
repayment of the gold loan. Operating cash flow rose 13.5% to US$49.8M. Cash
at hand is US$218M, debt US$1M. The stronger underlying result reflected
increased production at higher gold prices offset in part by higher costs.

[b]Strong Outlook [/b]
2H07 production is expected to rise to 424-454koz (up 13-21%) for CY07 full year
range of 800-830koz. Unit costs are expected to be in the mid US$200s/oz.
Feasibility study to expand production capacity at Lihir to >1Mozpa advanced and
is expected to be completed early 2008.

[b]Reiterate our Buy rating [/b]

We have a Buy recommendation backed by attractive leverage, strong production growth and discount to peers. LGL's large reserve base (23.6Moz) and strong balance sheet in the current environment add to corporate appeal. LHG is trading at 1.4 NAV, 2007E & 2008E PEs 21x & 20x, compared with its larger North American peers of 2.0x, PE 28x. Our price target is A$3.75ps (1.88x NAV).