Outlook
The outlook for the company remains very positive.
Following the successful merger with Equigold, the combined group will have a stable of world class assets in Australia, West Africa and Papua New Guinea, producing in excess of 1.2 million ounces of gold a year from 2009 at a cash cost in the lowest quartile of global producers.
At Lihir Island, the record production rates we achieved in 2007 are expected to be eclipsed in the current year.
The first quarter production of 139,000 oz of gold was broadly in line with our expectations, taking into account the planned shutdown of the process plant for maintenance during the period.
We remain on track to achieve our stated full year production target of between 700,000 – 770,000 ounces.
At Ballarat, we remain on schedule to produce gold in commercial quantities by the year end, and are forecasting total output of 40,000 – 50,000 ounces.
Assuming the Equigold merger is approved by Equigold shareholders at the Scheme meeting on May 30, and the transaction is then completed in June, we would expect to report production from Mt Rawdon of approximately 50,000 ounces for the remainder of the year.
Bonikro is forecast to commence production in July, and should contribute in the vicinity of 60,000 – 70,000 oz of gold in 2008.
Together, that means production in 2008 should total more than 850,000 oz, which should lead to a significant improvement in operating cash flows and earnings in the current year.
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