re: *** lhg hedge concerns as gold rises***
Hi All,
Have been a member for a while, but this is my first post.
Am reading your posts on LHG with interest and the comments seem to be very bearish. I get the weekly report from SalomonSmith Barney and they are quite bullish on LHG, although they temper it by saying it is high risk. I have attached their view if anyone is interested. Personally I feel that it breaks 1.18 it looks bearish, however if it can hold above this level I think we may see it reach into the 1.40's before it goes lower again.
good luck to all cheers
Lihir Gold (LHG.AX; Buy, High Risk (1H); $1.25; 12/11) Current Price: $1.30 Management reiterated its 20% cost reduction target to US$230/oz over the next 12-18 months. After the geothermal power cost savings, other cost initiatives include ongoing equipment rehabilitation leading to better utilisation, improved productivity through better operator training and reduced explosives costs. Our forecast earnings have not been revised however the method for calculating target price has been changed to incorporate earnings and cashflow multiples. Our new target price of $1.60 (previously $1.46) has resulted in our Buy (1H) recommendation being maintained.
LHG Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
