re: cheap on the chart./worth reading hi again wantono..just did...

re: cheap on the chart./worth reading hi again wantono..

just did a search on huntleys..and found this..dated 27/4/04

Huntleys Recommendation: Lihir Gold Limited ( LHG )
Recommendation: Sell
Increasing mill throughput should result in declining unit costs in A$ terms, but in US$ terms, we expect most of the potential gains through economies of scale and other initiatives have already been outstripped by US$ weakness. The problem is compounded by LHG’s hedging position which accounts for over 40% of expected production for the next three years at an unfavourable US$330/oz rate. CY05 will benefit from higher-grade ore resulting in production increases. In addition, costs should benefit from the commissioning of the geothermal power station in April 2005. Be that as it may our NPV for LHG remains at approximately A$0.23ps. The valuation assumes a gold price of US$400/oz, FX of 0.75 and discount rate of 10%. We struggle to derive any meaningful value for the company and retain our "Sell" recommendation.



Subject re: cheap on the chart.
Posted 22/05/04 12:40:54 PM - 5 reads
Posted by wantono
Post #296716 - in reply to msg. 296655 - splitview

in a few months time this one would be back on the investors rada. i've been accumulating from 107 to 90.(50% of my portfolio now ). replied from LHG saying everything is on target and late july would have a quarterly report. NOT RAMPING so use your own judgement.