Papua New Guinea gold mine declares increased reserves
[By Eric Tapakau] Lihir Gold Ltd-operated mine Lihir now has one of the largest and richest gold deposits in the world with its reserve increased by 36 per cent to 28.8 million ounces.
This of course is great news for PNG, as it means the Lihir Island operation will continue producing for many more years to come, while generating wealth for the PNG economy and Lihir community.
Managing director Arthur Hood said the increase in the reserves inventory was through expansion and refinement of the proposed pit shell and a rise in the long-term gold price assumption from 675 US dollars per ounce to 800 per ounce. He said the increase in gold ounces was also due to adjustments to cost assumptions of mining and processing costs offset by the cost benefits from the million-ounce plant upgrade project on Lihir Island, currently under construction, and depletion by mining to 30 June this year.
"This outstanding increase in reserves we are announcing is a reflection of the true world-class quality of the Lihir Island ore body, and leads directly to an increase in the value of the project for all LGL shareholders," Mr Hood said. "It also confirms the benefits of the initiatives that have been put in place over the past few years to lift production at Lihir Island and improve the economics of the project."
Mr Hood said strong production performance, rising cashflows, a solid financial position and positive outlook for the future have enabled Lihir Gold Ltd (LGL) to commence payment of dividends to shareholders. [passage omitted]
Source: Papua New Guinea Post-Courier website, Port Moresby, in English 1 Nov 09
BBC Mon AS1 AsPol pjt
BBC Monitoring. Copyright BBC.
This of course is great news for PNG, as it means the Lihir Island operation will continue producing for many more years to come, while generating wealth for the PNG economy and Lihir community.
Managing director Arthur Hood said the increase in the reserves inventory was through expansion and refinement of the proposed pit shell and a rise in the long-term gold price assumption from 675 US dollars per ounce to 800 per ounce. He said the increase in gold ounces was also due to adjustments to cost assumptions of mining and processing costs offset by the cost benefits from the million-ounce plant upgrade project on Lihir Island, currently under construction, and depletion by mining to 30 June this year.
"This outstanding increase in reserves we are announcing is a reflection of the true world-class quality of the Lihir Island ore body, and leads directly to an increase in the value of the project for all LGL shareholders," Mr Hood said. "It also confirms the benefits of the initiatives that have been put in place over the past few years to lift production at Lihir Island and improve the economics of the project."
Mr Hood said strong production performance, rising cashflows, a solid financial position and positive outlook for the future have enabled Lihir Gold Ltd (LGL) to commence payment of dividends to shareholders. [passage omitted]
Source: Papua New Guinea Post-Courier website, Port Moresby, in English 1 Nov 09
BBC Mon AS1 AsPol pjt
BBC Monitoring. Copyright BBC.
Gold Prices to benefit from weaker dollar 'for the next quarter' - Bullion Vault
Gold Prices to benefit from weaker dollar 'for the next quarter'
- Friday 30th October 2009
A prominent analyst suggested today (October 29th) that physical Gold Investment positions are beginning to build up over fears about the dollar, Reuters reports.
Since passing the $1,000-per-ounce mark recently, market commentators have been divided on which direction the yellow metal's next significant move will be in.
Walter de Wet, from Standard Bank, which is the largest bank in Africa, explained that he is expecting further gains because the greenback looks set to struggle for the next three months.
He told the news provider: "We have some decent interest in the physical side. We see some base-building going on.
"Our view is that we are going to see a general trend for dollar weakness in the next quarter."
Those comments were strongly echoed last week by ScotiaMocatta, which is the precious metals division of the Bank of Nova Scotia - the third-largest bank in Canada.
In a note viewed by Reuters, the group predicted that gold prices could easily reach as high as $1,400 per ounce over the course of the next 12 months.
"Gold is going through a very interesting time, but there are a multitude of factors influencing the price, some of which are quite contradictory, such as the presence of deflation and the fear of inflation," read one section.
"We also have an uneasy feeling that after the near catastrophic events seen over the past 12 months, the sharp recovery seen since March seems too good to be true, and for that reason it probably is."
Source: http://goldnews.bullionvault.com/Goldbug/gold_price/gold_prices_to_benefit_from_weaker_dollar_for_the_next_quarter_19434596
- Friday 30th October 2009
A prominent analyst suggested today (October 29th) that physical Gold Investment positions are beginning to build up over fears about the dollar, Reuters reports.
Since passing the $1,000-per-ounce mark recently, market commentators have been divided on which direction the yellow metal's next significant move will be in.
Walter de Wet, from Standard Bank, which is the largest bank in Africa, explained that he is expecting further gains because the greenback looks set to struggle for the next three months.
He told the news provider: "We have some decent interest in the physical side. We see some base-building going on.
"Our view is that we are going to see a general trend for dollar weakness in the next quarter."
Those comments were strongly echoed last week by ScotiaMocatta, which is the precious metals division of the Bank of Nova Scotia - the third-largest bank in Canada.
In a note viewed by Reuters, the group predicted that gold prices could easily reach as high as $1,400 per ounce over the course of the next 12 months.
"Gold is going through a very interesting time, but there are a multitude of factors influencing the price, some of which are quite contradictory, such as the presence of deflation and the fear of inflation," read one section.
"We also have an uneasy feeling that after the near catastrophic events seen over the past 12 months, the sharp recovery seen since March seems too good to be true, and for that reason it probably is."
Source: http://goldnews.bullionvault.com/Goldbug/gold_price/gold_prices_to_benefit_from_weaker_dollar_for_the_next_quarter_19434596
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