Tuesday, 19th August 2008 (625 views)

Lihir Gold is on track to increase its full year production despite volatility in the gold market, it has claimed.

The gold mining company said it expects to improve its annual earnings after reporting a net profit of $36.5 million (£19.6 million) for the six months to June, the Australian publication Herald Sun reported.

This compares to a loss of $46.5 million (£25 million) in the same period last year.

The company predicts that it will up its full year production by over 20 per cent to reach a record 850,000 oz and increase its profit.

It said lower gold grades and planned shutdowns of factories for maintenance at its Papua New Guinea operation were the reasons for a drop in its output since June 30, 2007.

But it claimed that conditions in the gold sector and world economy are suited to keeping gold prices firm.

Lihir has operations in Australia and West Africa as well as Papua New Guinea.

In Australia, it is developing an underground mine and process plant in Ballarat, a historic centre for gold mining.

 

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