SYDNEY (Commodity Online): Lihir Gold has posted record first-half production, which was hailed by the analysts.

The gold miner said it had achieved record production of 612,000 ounces in the first six months of calendar 2009 and remained on track to meet earlier full year guidance of 1 million to 1.2 million ounces.

This compared with first half production of 566,000 ounces (ozs) in the six months to December 2008.

The strong result was due to record production at Lihir Island in PNG, increased output at Mt Rawdon in Queensland and a full six month contribution from the Bonikro operation in West Africa, which commenced production in October last year, the company said.

Lihir Gold managing director Arthur Hood said opportunities for company growth looked positive.

At the end of June, the company had no debt and about $490 million net cash. Lihir said cash costs were $US368 per ounce for the June quarter, excluding Ballarat, up marginally  but still in a low-cost position.

Full year costs were expected to be maintained below $400 per ounce, excluding Ballarat. The miner’s production eased in the second quarter to the end of June, from a stronger first quarter, amid lower-grade ores mined at Lihir Island.

Production at Lihir Island in PNG was 219,436 ozs in the quarter, down from 246,711 ozs in the March quarter. At Mt Rawdon, production was 28,952 ozs, up from 25,500 ozs in the March quarter.

At Bonikro, in the Ivory Coast, production was 43,607 ozs, up from 40,100 ozs previously, and at Ballarat, in Victoria, production dropped to 2,029 ozs from 5,687 ozs.

Total production in the June quarter was 294,024 ozs, down from 317,998 ozs in the March quarter.

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