disapointment, page-13

masterful,

I concur and would add:-

1. LGL have been busily replacing diesel fuel with geothermal (now up to 50mw). Energy is one of the biggest operating costs in any mine.

2. Their fundamental problem is not under-delivery (production of: 2005 - 590koz; 2006 - 650koz; 2007 - 700koz). The problem is overpromising. I hope they have learned their lesson and start keeping two production targets: the one they want to meet and the one (100koz less) that they announce to the markets.

3. They have 40moz of resources at greater than 5g/t and at around $350/oz cash costs (and that's in a bad year), you wouldn't call them a high cost producer.

4. Whatever the folly or genius of it is, they have expanded - into Ballarat - so they are no longer a one-trick pony.

Having said that, I hope they stop their Lihir mine expansion at 1moz p.a., for a few years and start paying out some divvies.