Lihir Gold (LHG) Share Recommendation

Lihir Gold (LHG) has a maintained Outperform share recommendation with a share price target of $3.80 from Macquarie Research Equities (MRE). The stock analyst have noted that the company has reported their 3Q06 results and that their third quarter production was 34 percent lower than production in the same quarter last year. The gold mining company has also lowered their 3Q06 guidance. MRE commented that this report should not have surprised the market since a company briefing disclosed these details two weeks ago. Lihir Gold is one of two large cap Australian listed stocks available to equity investors seeking liquid exposure to gold prices. MRE also notes that: "After a strong start to the year, the market's confidence in LHG has been a little shaken because: (1) it has not seen the same strategic value in the BGF acquisition that LHG management has; and (2) the production downgrade for 2006. The latter is disappointing because MRE had been viewing LHG as a turn around story, on the basis that seemingly perennial operating shortfalls were a thing of the past. Nonetheless, MRE do detect a step change in focus on the operations, and believe that production downgrade is now more the exception rather than the rule. "

Lihir Gold Limited is listed on the Australian Stock Exchange (ASX) under stock code LHG. You can view their investor website here. LHG was listed on the ASX on 9 October, 1995. Lihir Gold owns and operates one of the world’s largest gold mines and processing facilities on the island of Lihir, 900 kilometres north-east of Port Moresby in New Ireland province of Papua New Guinea (PNG). Read previous news and stock recommendations for Lihir Gold (LHG). Find out the meaning of the recommendations in this primer. Browse for other stockbroker recommendations. Check your charts and good luck with your share trading!