1 Aug 2006

PNG's Lihir Gold company on track to meet full year production targets

7:03 am on 1 August 2006

Lihir Gold in Papua New Guinea is on track to meet its full year production targets despite a disappointing second quarter.

Lihir's managing director, Arthur Hood, says the company has had a series of small, niggling, maintenance and operations issues in the process plant.

But, he says the company will still meet its full year production target of 670,000 ounces.

The slower second quarter did not stop the company from posting a record-breaking first half net profit of 23.1 million US dollars.

Mr Hood also says he expects the gold price will maintain its strength over the next six to 12 months and help the miner to solid financial results.

The company is at the early stages of an expansion, with various options to take production beyond one million ounces a year to be considered by the board next year.