The problem with Lihir has always been one centred on their...

The problem with Lihir has always been one centred on their mining in a recently dead volcano with high temperature pressure bursts on a virtual daily basis. However, it is a world class gold deposit and the company has made solid progress. Labour problems have been finally resolved. The recent general market correction severely dented the stock regardless of the gold price. This had something to do with margin call selling. However, this is to a large extent over and the HUI which has been retreating for the last few weeks looks set to turn upwards before the end of the month having now become strongly short term oversold. Given this and the fact that gold has resumed its march towards U$1,000 one would suggest that LGL is headed back towards A$4.00 plus and perhaps higher. Given cash operating costs of US$350 for an unhedged producer and a US$900 plus selling price LGL is now making humungous profits. So what wrong with investors. What do they want? Cream on the jam and butter? Do your own research!