Aussie gold miner Lihir Gold Ltd
(ASX:LGL) has lifted its production guidance for the year after posting a solid first quarter result today.
The company, which is currently the target of a takeover by Newcrest Mining Ltd (ASX:NCM), has raised its production guidance for the year to between 1 and 1.1 million ounces of gold.
For the three months to March 31, the miner produced 230,000 ounces of gold, in line with guidance.
The gold miner says expansion of Lihir island is on track and within budget, with total output for the quarter coming in at 180,000 ounces.
The solid first quarter performance and recent strong operating history has enabled the company to increase guidance for Lihir Island to between 800,000 and 870,000 ounces for the year.
Gold sales totalled 200,000 ounces for the quarter, at an average price of $1110 an ounce, up from $1,096 an ounce in the December quarter.
Meanwhile the company has rejected the advances of suitor Newcrest Mining saying its bid did not adequately recognise the underlying value of Lihir.
Lihir Gold posted a loss of $260.9 million for 2009.
