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Lihir Gold Limited: LGL'S (Lihir Gold) Underlying Profit Up 130 Percent

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  Published in Science and Technology on Wednesday, August 26th 2009 at 3:36 GMT, Last Modified on 2009-08-26 03:36:10 by Market Wire
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PORT MORESBY, PAPUA NEW GUINEA--(Marketwire - Aug. 26, 2009) - Lihir Gold Ltd (TSX:LGG)(ASX:LGL)(NASDAQ:LIHR) ("LGL") ("the Company") is pleased to announce the release of its financial results for the three and six month periods ended June 30, 2009.

Summary:

- Record underlying profit(i) of US$154.9 million, up 130% from $67.4 million in the prior corresponding period.

- Mine EBITDA increased by 141% to $330.4 million, from $136.8 million in the six months to June 30, 2008.

- A one-off charge of $409.1 million, after-tax, associated with the write down of the Ballarat assets, reduced net profit after tax to a loss of $300.9 million, compared with a profit of $36.5 million in the six months to June 30, 2008.

- Operating cash flow of $258.9 million, up 528% from $41.2 million in the prior June half.

- Total cash costs down 20% compared with the prior June half, at $350/oz.

- $340.9 million equity raising successfully completed in the half year. Very strong balance sheet with net cash of $488.8 million at June 30, up $424.1 million in the half, and no debt.

- Former Equigold gold hedge book closed during the half year, leaving LGL with no gold hedging.

- Measured & Indicated Resources at Lihir Island increased 31% to 43 million ounces.

- Inferred Resources increased 62% to 5.5 million ounces.

- Measured & Indicated Resources in Cote d'Ivoire increased 22% to 1.7 million ounces.

- Inferred Resources lifted 28% to 784,000 ounces.

- 12 million man-hours without a lost-time injury achieved at Lihir Island operations.

Outlook

- Group production guidance maintained at 1-1.2 million ounces for the full year.

- Total cash costs per ounce for the full year expected to be below $400/oz.

(i)Profit after tax before non-cash hedging losses and non-recurring items.

Documents providing further detail relating to these results, including the "LGL Half Year Report," the "LGL Appendices 4D and Financial Report for the half-year ending June 30, 2009," the "2009 HY Profit Presentation," and the "LGL Resource Statement" will be available on SEDAR shortly at ([ http://www.sedar.com ]) and on the Company's website: [ www.LGLgold.com ]. Also, a recording of the Company's discussion of these results is available on LGL's website.