LGL - Lihir Gold

[eddyeagle]

Looks like we could be finally getting a run from LGL!

It's had some good sessions recently! Volume is up.

Fund managers seem to be pretty positive with a few price targets around the $3.90 - $4 mark.

 

[panikhide]

Fund managers seem to be pretty positive with a few price targets around the $3.90 - $4 mark.

Hi Eddy

Which fund managers have been putting forward these targets? Can you back that statement up somehow?

panikhide

 

[eddyeagle]

Hi Eddy

Which fund managers have been putting forward these targets? Can you back that statement up somehow?

panikhide

From Bloomberg:

Morgan Stanley $3.78
Deutsche $4.00
GSJBW $3.90

May have jinxed it as it took a hit today and gold is down too!

 

[Miner]

From Bloomberg:

Morgan Stanley $3.78
Deutsche $4.00
GSJBW $3.90

May have jinxed it as it took a hit today and gold is down too!

Only down by 3.2% and I will not be too concerned considering it was the Aussie Dollar which made gold looking like cheapy.

 

[prawn_86]

I must admit im not a gold bug, but why is LGL always quoted in the media as good exposure to gold? Is it because they only produce gold? It certainly cant be due to any correlation with the gold price.

They first broke $3 early 2006 and 3.5 years later they are still around that price...

 

[Sean K]

I must admit im not a gold bug, but why is LGL always quoted in the media as good exposure to gold? Is it because they only produce gold? It certainly cant be due to any correlation with the gold price.

They first broke $3 early 2006 and 3.5 years later they are still around that price...

They are very good exposure to operpriced M&A activity imo. Ballarat was a dead set bargain.

They have certainly been an up and down stock. I first bought in 1995 when the sp was about $2.40. And it's heading back there again by the look! lol

I'm starting to think there is no value in this for a buy and hold investor, but if you had been trading the troughs and peaks you'd have done alright.

Maybe they'll get the mix of assets right soon with a decent acquisition, or merger, Lihir Island won't explode, gold will continue to climb, and they'll start appreciating in value...

 

[GoodCall]

I too am a frustrated Lihir shareholder.

Good news, as well as the stock rising on a golden tide today, I also found out that it will be paying a dividend of $US1.5c/share on November 30th. Together with the 7.5 million oz (minimum) increase in reserves, do I dare hope that it will finally take off after so many false starts?

Please refer to their 3rd quarter production report for details.

 

[chatty]

I have long position for this stock. I consider it as hedge against my portfolio.

First, the operation is outside Australia so when AUD currency turns against the return on my portolio. LGL is some kind of insurance for me.

Secondly, it's one of the largest gold producers and profit margin is increasing due to the increase in gold price.

From the memory, its production cost is only $400/oz?? gold price is now at new high $1,090/oz.

I anticipate good financial results (besides from that stupid M & A deal )

 

[Sean K]

The market has always factored in quite high growth for LGL. ANZ have them with a p/e of 26. NEM 18. KCN 16. However, NCM at 34 looks out of place. Maybe that's incorrect?

Gold racing above 1090 now. Must be a more decent correction for USD shortly. It can't just fall straight to zero. As POG seems to be just tracking USD, expect a decent correction at some point. And if Rubini is correct and the USD carry trade pops forcing an equities exit stampede, there may be a more significant market correction just down the track to take our stocks with it.

Still time to be cautious imo, but make money while the sun shines!

 

[tjpj1919]

Excuse my ignorance but can anyone please explain to me what is going on today with the parcels of 10 and 15?

thanks

 

[bluefire]

Charlie Aitken's (Southern Cross Equities) article today focused on Aus gold. They are bullish on gold and expect gold to be moving to $1500oz-$2000oz over the next few years.
Their LGL trading target is $4.50.

 

[Tukker]

The market has always factored in quite high growth for LGL. ANZ have them with a p/e of 26. NEM 18. KCN 16. However, NCM at 34 looks out of place. Maybe that's incorrect?

Gold racing above 1090 now. Must be a more decent correction for USD shortly. It can't just fall straight to zero. As POG seems to be just tracking USD, expect a decent correction at some point. And if Rubini is correct and the USD carry trade pops forcing an equities exit stampede, there may be a more significant market correction just down the track to take our stocks with it.

Still time to be cautious imo, but make money while the sun shines!

Ive been following this idea as well. I was told by 2 separate brokers to expect a moderate correction in December. With gold skyrocketing i think this is a reasonable sign that the correction is setting itself up.

Back on topic - Chart looks right for a correction of some kind. Perhaps 3.25 - 3.20 support. But yea general bullish view on gold for now, and recovering USD to provide some resistance next month.

P.S. - How do i stop the images from resizing themselves?

 

[Sean K]

Well, it's about bloody time!

LGL has been a laughing stock after the Ballarat debarcle and overpayment for EQI and Hood should have been given the chop some time ago.

Lihir rocked by CEO's exit

Sarah-Jane Tasker From: The Australian January 19, 2010

LIHIR Gold, the country's second-biggest listed goldminer, was thrown into turmoil yesterday when chief executive Arthur Hood quit abruptly after being told his contract would not be renewed in September.

The company has been forced to install chief financial officer Phil Baker as acting chief executive as it launches a global search for Mr Hood's replacement.

And instead of doing the right thing, he's going to take whatever golden handshake is given and run for the Caymans.



But, this is good news for LGL in my opinion. Now that they've shaken this dead wood loose, they can get hold of a decent CEO and start creating some real value.

 

[GumbyLearner]

Well, it's about bloody time!

LGL has been a laughing stock after the Ballarat debarcle and overpayment for EQI and Hood should have been given the chop some time ago.




And instead of doing the right thing, he's going to take whatever golden handshake is given and run for the Caymans.



But, this is good news for LGL in my opinion. Now that they've shaken this dead wood loose, they can get hold of a decent CEO and start creating some real value.

I agree. That guy gave me no faith to buy LGL stock. Hopefully the next CEO will make some reasoned rational decisions.

 

[Out Too Soon]

Well, it's about bloody time!

LGL has been a laughing stock after the Ballarat debarcle and overpayment for EQI and Hood should have been given the chop some time ago.

And instead of doing the right thing, he's going to take whatever golden handshake is given and run for the Caymans.



But, this is good news for LGL in my opinion. Now that they've shaken this dead wood loose, they can get hold of a decent CEO and start creating some real value.

Can all the blame be placed on the CEO though? Surely the whole board needs to be sacked, tarred & feathered

 

[chatty]

First stock in my portfolio that I decided to hold long. and look what it did to me.
got in 2.92 ages ago and it tok this stock forever to reach 3.70 then I decided to be a real long term holder.
noe 2.71

I think I better stick with my 1-3 months holding plan. and the situation at the moment leads me to believe that we should be a day trader.

 

[TheMainMan]

I was worried for a while, what with the CEO resigning. But when I got the charts up, along with Newcrest, Dominion, etc'... They all have pretty much the same pattern. across the board. So not isolated to this stock.
But where did this money go? The currency markets where nothing unusual, the bond market is a NO NO, So I figure there is just a load of Ozzy dollars sitting in accounts getting 8% Spooked out of the market. The higher interest rates might have something to do with it.

They'll be back.

 

[Boggo]

Been watching this stock for a while now, its done the turn, whether it keeps going or not is the next issue.

As someone said earlier, nearly every stock in this whole sector looks much like this chart.

(click to expand)

 

[late_start]

Could someone please explain the release today on ASX website regarding to "Mt Rawdon Reserve and Resource Update"? Is this a good news or bad news?

 

[Sean K]

Could someone please explain the release today on ASX website regarding to "Mt Rawdon Reserve and Resource Update"? Is this a good news or bad news?

Um, did you open the announcement and read it?

18 February 2010

LGL updates Mt Rawdon Reserves and Resources

A higher gold price, reduced cut-off grade and adjusted cost assumptions have led to increased gold reserves at Lihir Gold Ltd’s Mt Rawdon operation in Queensland.

The total gold reserve has risen to 835,000 ounces, up 21,000 ounces from the previous 2007 reserve, adjusted for mining depletion.

Silver reserve was at 2.6 million ounces, which is up from 2.3 million ounces previously (based on the 2007 reserve depleted by mining).

Increased reserves after depletion is probaby a good thing, unless the market was expecting a larger upgrade of course. Although, I'm not sure if the market cares about Mt Rawdon at all. It's chicken feed compared to Lihir and Bonkoro.