LGL - Lihir Gold

[JetDollars]

Dear All,

As gold reaching high and many gold stocks follow the trend. Where would you think LHG will be heading for short term, say until the end of November this year?

Your comment will be appreciated.

 

[still_in_school]

Re: LHG - Lihir Gold Limited?

Hi Jet Dollars,

if gold can stay above $430 an ounce, we should see further appreciation in gold, and with todays election in the US, this will be dependant on who the new president is, but over all, im bullish on gold, due to gold and the US dollar hedging against each other, but some other importance to me is, that now you can trade gold on the nikkie or chinese market, anyways this is a little concern to me...

overall i may have sold out early on my gold positions in early october, though LHG gold could rally up to 1.80 or we could see the end of a trend coming soon...

Cheers,
sis

 

[markor]

Re: LHG - Lihir Gold Limited?

Given that there is consolidation going on in the resources sector, as shown by Xstrata's proposal to acquire WMC Resources, a mining house from Canada, UK or Switzerland could snap up Lihir Gold ( market cap $1.6 billion vs $7.4 billion for WMC ) ( I gleaned this from today's financial review ) in the not too distant future.
If this is the case then Lihir Gold could be a good short/medium term investment, in my opinion and I will follow it closely over the next few months.

Markor

 

[phoenixrising]

Re: LHG - Lihir Gold Limited?

Jet,

A seemingly well credentialed person at the Traders Expo on the weekend said at least some of LHG's gold costs $410/oz to mine so a price below this could be quite bearish. $20 leeway atm.

Cheers

PR

 

[RichKid]

Re: LHG - Lihir Gold Limited?

The high costs of LHG's production is one of the reasons why I've opted for higher quality gold stocks. They also have more hedging in place than some of the other stocks (eg OGD, OXR) reducing the potential upside. Also with management being less than reliable I consider it unattractive, if LHG flies up on the Gold price you can bet your bottom dollar that there'll be more gold co's which give you far more leverage. Having said that if this is a co that's not operating as profitably as it should then it may become a takeover target.

 

[JetDollars]

Re: LHG - Lihir Gold Limited?

Thanks guys regarding your opinion for LHG gold.

Before I posted this topic, I actually bought some of LHG Gold, but wanted to know other opinion on it.

I also did a covered calls with it as well.

So I hope it will stay about $1.30 by the end of this month so I get exercise which will generate more income.

I also have interest in WMR (WMC Resource) where the second offer will be coming from Xstrata in 1 or 2 weeks time. I guess the next offer will be more than $7.00 per share. So buying some call options of $7.00 or more strike price would be a good thing to do. Fingers Cross Though.

 

[stockGURU]

Re: LHG - Lihir Gold Limited?

Lihir Gold made a nice move upwards today on above average volume finishing at $1.08.

Their new geothermal power facility comes online this month and should result in significant savings. Production is forecast to increase and according to the company the cash cost per ounce is on the way down. Long term capital requirements are also set to decrease significantly.

Reserves have increased steadily since 1999 to around 18 million ounces.

Anyone still following this one? Someone was buying up big today.

 

[It's Snake Pliskin]

Re: LHG - Lihir Gold Limited?

What about their hedging disadvantage? Does anyone know how that affects them?

 

[brerwallabi]

Re: LHG - Lihir Gold Limited?

This one is great one for the inexperienced to lose money. Only wish I was able to trade during the day, pretty sure I could have picked up a few $k over the last few days ggggrrr. With gold @ $417 watch closely - gold @ $450 LHG could be up and over $1.30 again but could easily drop to $1.00 or lower. Tina your money could be floating away under that bridge be careful with LHG.

 

[bvbfan]

Re: LHG - Lihir Gold Limited?

Got this from the Lihir website

Lihir Gold intends to continues to reduce its hedged profile over time. The company does not intend to enter into additional hedge commitments during 2005 and, based on the current and anticipated spot gold price, expects to deliver not less than 160,000 ounces into its commitments (representing 29% of those commitments) during the 2005 year. The Board of Directors has determined that at least 160,000 ounces be delivered into hedges each year and that this be reviewed, with a view to raising the minimum rate of delivery, in the event that the gold price declines closer to strike price levels.

The mark-to-market value at 31 December 2004 was negative $232.2 million based on an increased spot price of $438.00 per ounse. This compares with a value of negative $190.0 million, at a spot price of $415.65 per ounce, at the end of the previous quarter. Hedge commitments represent less than 10% of published reserves and 4.5% of resources

 

[chicken]

Re: LHG - Lihir Gold Limited?

The high costs of LHG's production is one of the reasons why I've opted for higher quality gold stocks. They also have more hedging in place than some of the other stocks (eg OGD, OXR) reducing the potential upside. Also with management being less than reliable I consider it unattractive, if LHG flies up on the Gold price you can bet your bottom dollar that there'll be more gold co's which give you far more leverage. Having said that if this is a co that's not operating as profitably as it should then it may become a takeover target.

Rich Kid...takeover target...not likely...its a PNG company and they do their own thing up there....Goverment owns shares in this...profitable yes but Png Goverment will keep owning this I have been in PNG and difficult place to do business without the Goverment....

 

[ob1kenobi]

Re: LHG - Lihir Gold Limited?

Rich Kid...takeover target...not likely...its a PNG company and they do their own thing up there....Goverment owns shares in this...profitable yes but Png Goverment will keep owning this I have been in PNG and difficult place to do business without the Goverment....

I've worked in PNG also. The Government has always insisted on having a significant shareholding in any mining development. Much of it has to do with the diverse culture within PNG and the importance they attach to traditional land ownership, which they recognize in law. As a country, it has a lot of potential. Unfortunately too many other factors hinder the type of progress that could be made. That probably explains the extreme hedging.

 

[brerwallabi]

Re: LHG - Lihir Gold Limited?

This is a great stock to trade who really cares if its $1.35 or below $1.00 just dont put your savings in and expect it to fund your retirement.

 

[clowboy]

Re: LHG - Lihir Gold Limited?

Anybody have any current views on this stock?

 

[brerwallabi]

Re: LHG - Lihir Gold Limited?

The view seems to be the market is happy with its loss June half year as LHG has stated all is on track for a better and more profitable second half with considerable cost savings due to a geothermal plant. The price of gold is also closely associated to LHG there are far safer stocks then this one IMO not a long trade and not one for the nervous. It also could be near an acquistion as one day the gold will run out on Lihir Island.

 

[resourceful_man]

Re: LHG - Lihir Gold Limited?

This is a very over rated stock.
When they decide to pay a dividended, that's when I'll consider buying them.
Strickly a high end traders stock.

 

[Hanrahan]

Re: You heard about the Saudi oil sheik?

His son wanted a cowboy outfit, so he bought him LHG.

I don't hold and never would till they can mine profitably.

 

[brisvegas]

Re: LHG - Lihir Gold Limited?

LHG approaching an interesting level imo , certainly will monitor in future along with XAU chart


................. Pete

 

[brisvegas]

Re: LHG - Lihir Gold Limited?

XAU looking similar

............... Pete

 

[brisvegas]

Re: LHG - Lihir Gold Limited?

Gold in AUD for good measure


...................... Pete