The Papua New Guinea mining company, Lihir Gold Ltd, has reported a surge in its annual net profit, underpinned by higher production and gold prices.
After a succession of disappointing years, Lihir came through in 2004 with a net profit of US$329 million, a significant improvement on US$34.8 million the year before.
Lihir's managing director, Neil Swan, said yesterday that by the end of the year, the company had produced 600,000 ounces of gold.
But fuel oil prices, exchange rates, and increases in material prices and maintenance costs have all combined to increase costs.
Mr Swan says the focus will be placed on getting costs down in 2005, from a relatively high US$357 an ounce.
The financial performance of Lihir, which only has the one operation, on the PNG island from which it takes its name, is closely tied to incremental gold production.
