Credit Suisse 24/08/2009 1 Upgrade to Outperform from...

Credit Suisse 24/08/2009 1 Upgrade to Outperform from Underperform - -
Target US$2.50. The broker's upgrade in rating reflects recent share price movements.

CS expects a relatively benign interim profit result when the company reports this week.

Deutsche Bank 31/07/2009 1 Buy $3.30 22.7%
The broker supports Lihir's move to offload a disappointing Ballarat operation, but the resultant drop in diversification does put the spotlight squarely back on Lihir Island. Fortunately Lihir's full (Japanese) year production was in line with expectations, indicating the island is performing well.

2010 production is nevertheless expected to be flat over 2009, and the broker makes no changes to earnings. Target falls from $3.60 to $3.30 on a higher A$.

UBS 31/07/2009 3 Downgrade to Neutral from Buy $3.10 17.7%
The $500m pre-tax impairment for the Ballarat write down will now push Lihir Gold's result for the year in the red, but UBS analysts point out the company is to remain positive on an EBIT level (earnings before interest and taxes).

Some fine tuning of future projections has led to lower forecasts. But above all, UBS analysts have scaled back their gold expectations and this now translates into them downgrading the stock to Neutral.

Gold Bugs pay attention, UBS talks about the gold price "lacking any significant positive short to medium term drivers". New target of $3.10 compares with $3.35 previously.

RBS Australia 31/07/2009 1 Buy $3.05 16.4%
Target $3.05 (was $3.39). Production in the June quarter was solid and full year guidance has been retained, while the broker continues to expect good news with respect to the group's Ivory Coast project.

While not seeing a short-term re-rating the broker retains its Buy rating on the stock, this despite a modest reduction in price target.

Macquarie 31/07/2009 1 Outperform $3.60 29.2%
Lihir's quarterly result beat the broker in terms of both production and costs, leading to a 3% increase in forecast 2009 earnings.

The broker agrees with the CEO that Ballarat was not a great decision but better now it's gone, while Equigold was and closing the hedge book was too. But the highlight is that Lihir Island is now performing consistently, which has not been the case in the past.

Citi 31/07/2009 3 Hold, High Risk $3.05 16.4%
June quarter production and costs were in-line and the broker notes Lihir Island continues to perform well and Bonikro is also impressing.

Minor changes to production and cost assumptions and the closing out of the hedge book see a 5% lift to 2009 and 2010 core estimates. Otherwise, the Hold call is maintained.

BA-Merrill Lynch 31/07/2009 3 Neutral $3.30 22.7%
2Q09 production was short of last quarter given last quarter was especially strong, but the result was still slightly ahead of the broker's forecast.

Costs were a little higher than the broker expected to see, but it isn't worried, and believes both full year production and cost targets are well in hand.

All up, the result sees the broker lift its 2009 net profit estimates by 7.5%, while the Neutral call is maintained, given the broker likes Newcrest ((NCM)) better.

Aspect Huntley 26/06/2009 4 Reduce - -
Update database.

JP Morgan 17/06/2009 1 Overweight $3.60 29.2%
Target $3.60 (was $3.70). The company has revised down production expectations at its Ballarat operations and the broker has adjusted its numbers accordingly.

The changes flow through to a minor reduction in price target but with relative value on offer the broker retains its Overweight rating.