lihir gold debt free and ready to make acquisi

http://www.mineweb.net/mineweb/view/mineweb/en/page34?oid=71524&sn=Detail

Lihir Gold debt free and ready to make acquisitions
Australia’s second Tier 1 gold miner, Lihir, says it is debt free and open to making acquisitions but won’t say if it is already in negotiations. Will maintain its pure gold play status.
Posted: Tuesday , 28 Oct 2008
SYDNEY (REUTERS) -
Australia's second-biggest listed gold producer, Lihir Gold Ltd (LGL.AX), is debt free and open to making acquisitions in the gold mining sector, its chief executive said on Tuesday,
"Yes, we are open to acquisitions," Arthur Hood told reporters after Lihir released a quarterly production report.
Hood said Lihir, second on the Australian market to Newcrest Mining Ltd (NCM.AX), was committed to remaining a "pure gold play", fearing expansions into other metals would erode a premium gold miners enjoyed over other mining companies.
He declined to comment on potential targets or whether Lihir was currently in deal talks.
Gold prices have fallen 15 percent since Sept 30, compared with a 38 percent decline in copper MCU3 and a 28 percent drop in nickel MNI3.
Lihir shares were up 3.8 percent at A$1.63 at 0054 GMT, in a weaker overall market. Since Sept 30, the stock has fallen 40 percent, hurt by forecasts for lower gold prices next year.
Lihir earlier on Tuesday forecast annual production of 850,000 ounces this year, up from 701,000 in 2007, owing in part to the start of new mines in Australia and Africa as it moved away from a company with one mine in Papua New Guinea.
Total cash costs over all its mines would run at $400-$420 per ounce this year versus around $300 in 2007 at its main Lihir mine in Papua New Guinea, Hood said.
Costs could drop, however, due to lower oil prices eventually cutting the price of diesel fuel, he added. (Reporting by James Regan, Editing by Mark Bendeich)
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