4 May 2010
Australian stock Lihir Gold (LGL) is a leading gold producer with operations in Papua New Guinea, Australia and West Africa with a combined gold reserve of 30 million ounces.
In Australian stock news, LGL has accepted Newcrest Mining’s (NCM) sweetened takeover bid.
The revised offer values LGL at A$9.5 billion, representing a 6.4% improvement over NCM’s previous bid.
The part scrip/part cash offer comes with the caveat that LGL be allowed to continue talks with rival bidders, implying that it is currently in such talks.
The LGL/NCM tie-up could be a harbinger of further consolidation in the industry, with soaring gold prices putting added pressure on miners to replace existing reserves.
Australian stock price for LGL saw strong resistance at the $4.00 level and has treaded down ever since. Its last closing price was $3.79.