It's about time LGL had a positive profit report!
Things are looking good in the medium term:
Lihir also said total production would increase to more than 850,000 ounces this year, from 701,000 ounces in 2007.
The improved profit followed the merger of Lihir with Equigold, which brought the established mine at Mt Rawdown, in Queensland, and the new Bonikro mine in the Ivory Coast, in West Africa, into the group.
Bonikro is being commissioned now, with it initial gold pour scheduled for September.
Mr Hood said Lihir's second half production would include the start of commercial gold production at Ballarat, with ore extraction set to begin later this month, ramping up over the remainder of the year.
Ballarat is expected to produce approximately 40-50,000 ounces in 2008, with the bulk of production in the final quarter.
Lihir's major asset, the 23 million ounce reserve Lihir Island mine, off Papua New Guinea, continued to perform well, Mr Hood said.
The Lihir island mine was scheduled to produce more than 700,000 ounces in 2008, following output of 308,000 ounces in the first half.
The expansion of the process plant to lift output to more than one million ounces per year continued to make good progress in the first half, and remained on budget and on schedule for completion in 2011.
''By the end of this year, the LGL group will have four mines in operation, producing a total of more than 1.2 million ounces of gold per year, providing the company with diversified cashflows and strong future growth potential,'' Mr Hood said.
Lihir said its cost of sales lifted 16% from the December half year of 2007 to $US141.1 million. Operating cash flow of $US41.2 million compared to $US53.3 million in the December half.
It said total cash costs per ounce for the full year would be less than $US400 per ounce from Lihir Island.