33% increase in reserve & resources, yet market seems to missed the news (this news does not even show up in SH). Currently share price only went up by about 4% since the news. This creates great opportunity for value play.
51Moz total reserve and resource for a 5.3B market cap. that works out to be $104/oz
this is way too low for a major. heck even OSK are valued at over 200/oz. I am look at 100% just to bring it to OSK's valuation and possibly more if it is to be fairly valued at 250-300/oz.
full news for the reserve & resources update:
LGL'S (Lihir Gold) Underlying Profit Up 130 Percent
8/26/2009 6:01:23 AM - Market Wire
Financial Results to June 30, 2009
PORT MORESBY, PAPUA NEW GUINEA, Aug 26, 2009 (MARKETWIRE via COMTEX News Network) --
LihirGold Ltd (TSX: LGG)(ASX: LGL)(NASDAQ: LIHR) ("LGL") ("the Company") ispleased to announce the release of its financial results for the threeand six month periods ended June 30, 2009.
- 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 thewrite down of the Ballarat assets, reduced net profit after tax to aloss of $300.9 million, compared with a profit of $36.5 million in thesix 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.
- 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.
Documentsproviding further detail relating to these results, including the "LGLHalf Year Report," the "LGL Appendices 4D and Financial Report for thehalf-year ending June 30, 2009," the "2009 HY Profit Presentation," andthe "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 isavailable on LGL's website.
Lihir Gold Ltd (Brisbane)
GM Corporate Affairs
Mobile: +0421 587 755
Lihir Gold Ltd (Brisbane)
Corporate Communications Manager
+07 3318 3317
Lihir Gold Ltd (Toronto)
Greg W Taylor
(905) 337-7673 or Mobile: (416) 605-5120
SOURCE: Lihir Gold Limited
mailto:firstname.lastname@example.org mailto:email@example.com http://www.LGLgold.com
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