LGL joins ranks of 1 million ounce producers
Fourth Quarter 2009 - Group Overview
- Annual gold production exceeded 1 million ozs for the first time in the history of the company, rising 27% to a record 1.12 million ozs, in line with market guidance.
- Quarterly gold production of 278,000 ozs, up 19% compared to the September quarter.
- Record average realized cash gold price of $1,096/oz for the quarter and $956/oz for the year.
- Total cash costs at $397/oz for the full year, excluding Ballarat, in line with market guidance and positioning the company at the lower end of the global gold production cost curve. Quarterly total cash costs at $454/oz, reduced from $487/oz in the prior September quarter.
- Operating cash margins increased 42% to $460/oz for the year.
- Expansion projects proceeding to plan:
o Lihir Island Million Ounce Plant Upgrade proceeding on schedule and within budget.
o Bonikro expansion feasibility study due for completion by year-end.
Outlook
- Operating capacity now raised to more than 1 million oz/pa, rising to 1.3 million ozs in 2012 as expansion projects lift output at Lihir Island and at Bonikro.
- Group production in 2010 forecast to be between 960,000 – 1,060,000 ozs
- Total cash costs per ounce for 2010 to be below $450/oz, assuming stable oil prices and exchange rates. Costs for Lihir Island and Bonikro to be below $420/oz.
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