Lihir Gold (LHG) Stock Recommendation

Lihir Gold (LHG) has a Neutral 2 stock recommendation and a share price target of $3.40 from stock analyst UBS. They have downgraded their broker call to Neutral 2 following a downgrade on gold price forecasts. They have lowered their FY06E estimate by 43 percent as a result of a lower production forecast and an increase in cost estimates. They have also lowered their valuation of the gold mining company to $1.46 with the share price target of $3.40 based on a premium to NPV of 2.3x. Another stock analyst, Citigroup Investment Research (CIR) have retained their Hold (2H) recommendation for Lihir Gold. CIR note that the official CY06 production target has been reduced to 630-640 kozs which was expected as previous target was 670kozs but the shortfall was due to the inability to access higher grade ore. The analyst also notes that CY07 should be better.

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!