Lihir Gold reports net loss of $US2.2mSource:SYDNEY...

Lihir Gold reports net loss of $US2.2m


Source:
SYDNEY AAP

Date:
2004-Jul-28 10:31 AM


Lihir Gold managing director Neil Swan said financial results in 2004 will continue to be heavily influenced by the lower grades and production levels experienced during the transition from the Minifie pit to Lienetz at the Lihir mine in PNG.


Lihir reported a net loss of $US2.2 million for the six months to June, compared to a loss of $US6.7 million in the previous corresponding period.


Mr Swan said the loss of loss of production in the first quarter as a result of the failure of the Linde oxygen plant was also a significant factor in results.


He said an insurance claim for more than $5m relating to the failure is being pursued with resolution expected in the company's favour during the second half.


"More generally, pleasing gains are being made in mining and processing operations which should allow the company to benefit more fully from the higher grade years to follow," he said.


"The company's cost profile has been affected by a range of factors, including fuel prices and exchange rate movements."


Mr Swan said the company's capital investment program is progressing well and the company remains confident that all identified efficiency gains and cost reductions will be realised.


Lihir meanwhile reported sales revenue for the six months of $US100.2 million, up from $US94.7 million in the previous first half.


It said an average gold price of $US309 per ounce was realised during the period, up 12.4 per cent.


Gross cash costs were $US367 an ounce, up from $US332 an ounce, while cash costs were $US289 an ounce, down from $US332 an ounce.


Lihir said gold sales of 282,399 ounces for the half year compared to 282,841 ounces.