JOHANNESBURG (minigweekly.com) – Australian-miner Lihir Gold (LGL) has reported a record underlying profit of $154,9-million for the six months ended June 2009, a 130% increase on the prior corresponding period. The strong profit result confirmed the significant operational improvements that have been achieved at the Lihir Island operation in Papua New Guinea, where production was at record levels in the half year, as well as the benefits of the Equigold acquisition, completed by LGL in June 2008. Gold production totalled a record 612 000 oz, including 466 000 oz from Lihir Island and 138 000 oz from the former Equigold assets of Mount Rawdon, in Queensland and Bonikro in Côte d’Ivoire. LGL’s revenues were up 97% to a record $564,1-million for the half year, owing to an increase in gold sales, which rose by 99% to 614 000 oz. On a unit cost basis, costs declined by 20% to $350/oz. A review of the Ballarat project in the period resulted in a decision to divest the asset, with the sale expected to be completed by early 2010. The financial results, therefore, included an impairment charge of $409-million after tax associated with the write down of the operations, resulting in a statutory loss of $300,9-million after tax. In addition to the financial results, LGL has released significantly increased resource estimates for both Côte d’Ivoire and Lihir Island. At Lihir Island, measured and indicated resources increased 31% to 43-million ounces, and inferred resources were up 62% to 5,5-million ounces. In Côte d’Ivoire, LGL lifted measured and indicated resources by 22% to 1,7-million ounces. LGL MD Arthur Hood said that the strong profit performance for the first half of 2009 reflected continued “outstanding production” at the cornerstone Lihir Island operation in PNG and the benefits of the Equigold acquisition.. “At Lihir Island, the many improvements that have been implemented over the past four years have transformed the operation, delivering higher and more reliable production, and significant cost benefits,” he said. “In addition, the Equigold acquisition has proven to be an excellent transaction for LGL, bringing immediate gains, strong cashflows and exceptional exploration upside,” he said. Hood said that the outlook for the second half of the year was for solid production from LGL’s three producing mines, taking full-year output to between one-million and 1,2-million ounces. “LGL is now firmly established as a global gold producer with growing production and exciting exploration opportunities,” he said. “Going into the second half of 2009, we are on track to deliver our fourth consecutive year of record gold production.”

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