Today in Gold: Lihir Gold & Oxiana announce record earnings, Beaconsfield to return to production


MELBOURNE AUSTRALIA (Daily Reckoning): IGC Resources (TSXv: IGC) has commenced a geophysical survey at its flagship Blackburn gold resource in Western Australia. The surveys are aimed at identifying further shoots in the area, which currently holds a resource of approximately 240,000 ounces.

Lihir Gold (ASX: LHG) has posted a recors annual profit after tax of AUD$53.8 million, up from AUD$9.8 million in 2005. gold production for the year was a record of 651,000 ounces, including 226,000 ounces in the final quarter. The company said that the improved result reflects a sharp improvement in underlying operating performance, including record gold production, record material movements and record process plant throughput.

The Australian reports that Beaconsfield (ASX: BCD) goldmine manager Matthew Gill has resigned, citing stress. Mr Gill was in charge of the Beaconsfield mine rescue last year, and said that his decision to resign was aimed at allowing a new manager to take over as the company finalised plans to return to production.

Oxiana (ASX: OXR) has announced record earnings of AUD$553 million for the year. Directors have declared a dividend of 5 cents per share franked to 46%, bringing the total dividend for 2006 to 8 cents per share. The company reports that gold bullion sales from Sepon in Laos, were AUD$146 million for the period, compared to AUD$117 million for the previous corresponding period. The average gold price received for the period was USD$598 per ounce.

Oxiana also reported that the Prominent Hill copper and gold development in South Australia remains on track for first production in the third quarter of 2008, and promises to be a further strong source of earnings and cashflow for the company.

Forbes reports that while Australian share prices are expected to open flat following losses on offshore markets, the resources sector may gain following rises in gold, oil, zinc and copper prices. The price of gold rose after an increase in oil prices and US consumer prices. The most active April Comex gold contract rose USD$23.00 or 3.4% to USD$684.00 an ounce.

The Daily Reckoning Australia

The Daily Reckoning
The Daily Reckoning offers an independent and critical perspective on the Australian and global investment markets. Slightly offbeat and far from institutional, The Daily Reckoning delivers you straight-forward, humorous, and useful investment insights from a world wide network of analysts, contrarians, and successful investors. Founded in 1999, The Daily Reckoning is published in 7 countries with a worldwide readership of almost 1 million people.

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