lihir lower on nasdaq, page-5

SB, I just found this at egoli website:

Lihir Gold Limited (LHG) today announced its annual gold production had exceeded the recently forecast figure of 550,000 ounces in 2003. Improvements undertaken during the year and a successful equity raising exercise in November will see the company well positioned for 2004, said Lihir.

Mr Neil Swann, Lihir’s managing director said this performance resulted from improvements undertaken during the year, particularly identifying and remedying bottlenecks and sources of unreliability in the plant.

"This work, combined with that planned for the major shutdown scheduled for February, provides a sound platform for 2004," he said.


Mr Swan said Lihir had bought forward the purchase of mining equipment slated for 2005 and expects it to be delivered in March or April this year to underpin the company's mining efforts.

Furthermore, the construction of the 30 megawatt geothermal power station is progressing towards commissioning by April 2005 and that the potential advancement of the Kapit ore body.

"As forecast in October, the final quarter saw improved plant performance with records being set and higher gold grades," Mr Neil Swan said.

The company informed that unit gross cash costs improved as production increased. This was helped by Lihir's ability to sell all available production in the last three months of 2003 at an average price of $US395 per ounce bringing the average cash gold price to $US364 per ounce for the year.

Cash costs were $US273 per ounce in the December quarter and $US301 per ounce for the year.

Mr Swann also advised that the equity raising at the end of last year has enabled the company to identify efficiency and cost saving improvements.

"However, Lihir continues to be adversely impacted by unfavorable exchange rates, oil prices and maintenance costs, which are receiving ongoing management attention," Mr Swan said.

Lihir shares closed flat at $1.35 on Thursday’s trading.


I guess the good news was offset by the details in the last paragraph which obviously spooked investors.

I still think it will bounce next week.

Regards

Commy