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0000950123-08-006473.txt : 200806030000950123-08-006473.hdr.sgml : 2008060320080603060322ACCESSION NUMBER:0000950123-08-006473CONFORMED SUBMISSION TYPE:6-KPUBLIC DOCUMENT COUNT:22CONFORMED PERIOD OF REPORT:20080521FILED AS OF DATE:20080603DATE AS OF CHANGE:20080603

FILER:

COMPANY DATA:COMPANY CONFORMED NAME:LIHIR GOLD LTDCENTRAL INDEX KEY:0001000300STANDARD INDUSTRIAL CLASSIFICATION:GOLD & SILVER ORES [1040]IRS NUMBER:000000000FISCAL YEAR END:1231

FILING VALUES:FORM TYPE:6-KSEC ACT:1934 ActSEC FILE NUMBER:000-26860FILM NUMBER:08875759

BUSINESS ADDRESS:STREET 1:7TH FL PACIFIC PLACE CNR CHAMPION PDESTREET 2:MUSGRAVE ST PO BOX 789 PORT MORESBYCITY:PAPUS NEW GUINEASTATE:J0BUSINESS PHONE:6750217711

MAIL ADDRESS:STREET 1:GPO BOX 905CITY:BRISBANESTATE:Q2ZIP:999999999

6-K1y59593e6vk.htmFORM 6-K

6-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Issuer
Pursuant to Rule13a-16 or 15d-16 of
the Securities Exchange Act of 1934

May21, 2008

Commission File No.000-26860

LIHIR GOLD LIMITED

Level 7, Pacific Place
Cnr Champion Parade & Musgrave Street
Port Moresby, Papua New Guinea
(Address of principal executive offices)

(Indicate by check mark whether the registrant files or will file annual reports under coverof Form 20-F or Form 40-F.)

Form20-F Form40-F o

(Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted byRegulationS-T Rule101(b)(1): )

(Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted byRegulationS-T Rule101(b)(7): )

(Indicate by check mark whether the registrant by furnishing the information contained in thisForm is also thereby furnishing the information to the Commission pursuant to Rule12g3-2(b) underthe Securities Exchange Act of 1934.)

Yes o No

(If Yes is marked, indicate below the file number assigned to the registrant in connectionwith Rule12g3-2(b):82-.)

Annual General Meeting, 21 May2008

Chairman, Dr Ross Garnaut

Good morning ladies and gentlemen. It gives me great pleasure to welcome you to the Annual GeneralMeeting of Lihir Gold Limited.

Through 2007 and the early months of 2008, Lihir Gold Limited has built a strong platform forgrowth. During 2007 we completed three major projects which together transformed the company andits operations.

The first was the construction and commissioning of major expansions of the process plant andgeothermal power station at Lihir Island. Foreshadowed in earlier Annual Reports, thissignificantly raised production capacity and lowered unit costs.

The second was the merger with Ballarat Goldfields, announced in late 2006 and settled in 2007.This provides diversification benefits and additional growth opportunities.

The third was a comprehensive financial restructuring of the company via an A$1.2billion capitalraising. This allowed us to close out our gold hedging and opened the company fully to thefavourable gold price environment. The gold loan and hedges were paid out at a gold price ofapproximately $695 per ounce, more than $200 below current levels. The financial restructuring alsoallowed the company to clear its secured debt and to remove a range of restrictive loan covenants.The associated financial flexibility and strengthened balance sheet consolidates the companysplatform for growth.

The financial markets acknowledged the companys progress with another year of solid share priceappreciation. For the third consecutive year, LGLs total shareholder returns ranked in the topquartile of the S&P/ASX 100 stocks. Volatility in global markets and a pull back in the gold pricehave contributed to some erosion of gains in recent months. The longer-term outlook remainspositive, as the growth potential of the companys assets is recognised.

In my presentation this morning I would like to update you on two of the most important initiativesimplemented over the past year. These are central to the transformation being accomplished at LGL.The first is the Board decision to proceed with a major investment in expanding processing capacityon Lihir Island to approximately 1million ounces of gold per year. The second is the recentlyannounced merger agreement with Equigold NL. I will then hand over to the Chief Executive, ArthurHood, who will provide you more insights into the many operational improvements being put in placeto deliver increased value for our shareholders.

Million Ounce Plant Upgrade Project

The Million Ounce Plant Upgrade project at Lihir is the step which will see the realisation of thepotential value of one of the worlds great gold ore bodies.

The Lihir mine celebrated its first gold pour in 1997, and has produced a total of more than 6million ounces since that time, including a record 700,000 ounces in 2007.

7th Floor, Pacific Place

Lihir Gold Limited

Phone: +675 321 7711

Cnr. Champion Parade & Musgrave Street

Incorporated in Papua New Guinea

Fax: +675 321 4705

PO Box 789 Port Moresby NCD 121

ARBN 069 803 998

Website: www.LGLgold.com

Papua New Guinea

LGL Annual General Meeting 21 May2008, Chairmans Address to Shareholders Page 2.

There is significant potential for expanding reserves beyond the current 23million ounces, as yousaw in the drilling results put out with our first quarter reports. The Million Ounce Plant Upgradeproject will allow LGL to maximise the value of the ore body for our shareholders.

The project involves a substantial expansion of the operations processing facilities, matchingprocessing capacity to the current rate of mining at Lihir. It will see annual gold productionincrease to approximately 1million ounces from 2011. The Board of Directors approval in Februaryfollowed a rigorous 12month feasibility study which concluded that the expansion would provide arobust return, positioning LGL for increased output, lower cash costs and more reliable andconsistent production. The reduction in costs will feed back into increased reserves.

The economic benefits are far-reaching. The project will require a capital investment of $696million, which will boost gold output by an average of 240,000 ounces per year and reduce costs byapproximately $80 per ounce over the remaining life of the operation. The project will injectsubstantial income-generating opportunities into the local community at Lihir, and will make amajor contribution to growth in the New Ireland and national economies in PNG. Community benefitsinclude higher royalty payments, improved infrastructure, and significant job and businessopportunities.

Progress on the Million Ounce Plant Upgrade project is already well advanced, with the next stageof detailed design and planning underway, long-lead items ordered and a $150million, 40 Megawattgeothermal expansion in the pipeline to meet the increased power demand of the upgraded processplant.

Merger with Equigold

The other initiative I will discuss today is our merger with Equigold NL, which was announced inMarch. Equigold is a highly performing gold producer with projects at Mount Rawdon in Queenslandand at Bonikro in Ivory Coast, West Africa. It is close to commencing production at Bonikro. Ofspecial interest, it holds an additional 15,000 square kilometres of exploration licences eithergranted or under application in the highly prospective Birimian greenstone belt of Ivory Coast.

The merger with Equigold will add considerable strength to LGL, firmly establishing the company asa major pure gold group, with a diversified portfolio of producing mines, low cash costs, a stronggrowth pipeline and quality exploration acreage. Geographic diversification and additional minesreduces LGLs risk profile.

The addition of the proven management team at Equigold will add executive strength to LGL andensure that we can deliver the exciting projects we have in train.

The merger is to be achieved by a Scheme of Arrangement, with Equigold shareholders to receive 33LGL shares for every 25 Equigold shares they own. The Scheme will involve the issue of 280millionLGL shares equivalent to approximately 13% of the merged company. Equigold shareholders will voteon the proposal at a Scheme meeting in Perth next Friday 30 May2008.

Financial Overview

Moving on now to the financial performance of the company for the year. LGLs operating profit for2007 increased by 25percent to $195.9million, driven by record gold production and higherrealised gold prices. After hedging losses and the one-off loss from the repayment of the gold loanresulting from the financial restructure, the net result for the year was a loss of $24.1million.

Like many of our peers, the companys cash costs were affected by the fall in the US dollar duringthe year, as approximately 60percent of LGLs costs are in currencies other than the US dollar,mainly the Australian dollar and Papua New Guinea kina.

LGL Annual General Meeting 21 May2008, Chairmans Address to Shareholders

Page 3.

Other mining inputs such as fuel, materials, and labour costs also experienced sharp price hikesdue to pressure from the global resource boom. However, in the face of rising costs, LGL has asignificant advantage over others in the mining industry. Geothermal power which is both a cleanand inexpensive alternative to Heavy-Fuel Oil generated power saved the company around $50million for 2007, compared to the cost of power using oil-fired generators.

The company is currently scoping a further 20 Megawatt expansion of the existing 56 Megawattgeothermal power plant to make full use of the invaluable opportunity to reduce costs and increasecarbon credit revenues.

Skills and Training

Papua New Guinea, Australia and the world are experiencing a boom in demand, prices, investment andproduction for resources beyond anything previously known. This has placed stress on theavailability of skills at all levels. Lihir is responding by ensuring that its terms of employmentare competitive, and by investing heavily in training of people from Lihir who are most likely toremain with the company for long periods. The responses add to costs, but are an essential elementof long term success.

Acknowledgements

Before I hand over to Arthur, I would like to acknowledge the contribution that he and hisexecutive team have made over the reporting period. Arthur and his team are delivering strongly onthe ambitious goals the Board has set for it. The company has a large, diverse and committedworkforce, whose members have pulled together in the transformation of LGL. Thank you for yourhard, sustained and effective work.

I would also like to acknowledge the support of the Lihir and Ballarat communities. Our operationsare located in a close vicinity to them. We place the utmost importance on building and maintainingstrong relationships with our neighbours.

On behalf of LGL, I also thank the Papua New Guinean, New Ireland and Victorian Governments fortheir support in 2007.

Papua New Guinea is experiencing a period of exceptionally strong economic growth, which I expectto continue for a long time. The growth has its epicentre in the resource sector, but is nowextending throughout the national economy. Sound fiscal and monetary policy are avoiding thedissipation of this new economic strength in financial instability. Financial sector andconstitutional reforms of the past decade have been consolidated by successfulexperience. Moderate inflation, low domestic interest rates, a steady exchange rate and continuingreductions in public sector debt are helping to convert heightened activity in the resources sectorinto more general prosperity. Lihir Gold Limited is glad to be a central part of a historic shiftin gear in economic development in this country of opportunity.

Following the 2007 Papua New Guinea elections, Deputy Prime Minister Dr Puka Temu, supported byDeputy Under Secretary Ano Pala, now oversees the Mining portfolio. We are confident that Dr Temuand Mr Palo will continue the excellent work of his predecessor, Sam Akoitai, in nurturing thelocal resources industry.

Finally, thank you to you, our shareholders, for your continued support. You can be assured thatthe company is strongly focussed on the creation of value on your behalf.

I now invite Arthur to address the meeting.

Annual General Meeting, 21 May2008

Managing Director, Arthur Hood

Thank you Chairman and good morning everyone.

The process of building LGL into a vibrant gold major on the back of the fantastic Lihir Islanddeposit has advanced significantly during the past 12months.

The company has certainly come a long way in a short space of time.

If you turn your mind back barely three years, to the middle of 2005, Lihir Gold Ltd was a singleasset company, managed by Rio Tinto, producing around 600,000 ounces of gold per year, and with amarket capitalization of around A$1.5billion.

Weighed down by hedge book commitments, low gold prices and rising costs, the company faced somesignificant challenges despite owning one of the largest golddeposits on earth.The company we share today presents a significant contrast.

By the end of this year, we expect to have four mines in three countries, producing gold at coststowards or in the lowest quartile of global gold producers.

We will hold almost no hedge commitments, so well be able to capture the full benefits of surginggold prices.

In addition, we have an envious growth profile that should see us producing in excess of 1.2million ounces next year and 1.3-1.4million ounces of gold per year by 2011.

Our market capitalization, following the merger with Equigold this year, should be more than A$7billion, and we will be generating very significant operating cashflows.

Im sure you will agree that this has been a remarkable turn-around for the company. The new LGL isnow ideally positioned to produce consistent and reliable returns for shareholders, at a loweroverall risk.

Our 3500 employees can feel proud to be part of a vibrant, successful company which is providingsecure jobs and expanded career opportunities.

The communities in which we operate can feel confident that we are making a positive contributionto society and take our environmental and social responsibilities very seriously.

There have been many important steps in this transformation journey, commencing in 2005 with theclarification of our corporate vision and values.

Let me remind you of our vision: People, Results, Growth.

7th Floor, Pacific Place

Lihir Gold Limited

Phone: +675 321 7711

Cnr. Champion Parade & Musgrave Street

Incorporated in Papua New Guinea

Fax: +675 321 4705

PO Box 789 Port Moresby NCD 121

ARBN 069 803 998

Website: www.LGLgold.com

Papua New Guinea

LGL Annual General Meeting 21 May, 2008 Managing Directors Address to Shareholders

Page 2.

We aim to develop a skilled and committed workforce and a strong relationship with the community,government and regulators, to enable us to achieve excellent operational results, which will thengive us the financial strength to grow your company and your financial rewards.

With safety implicit in everything we do, we aim to operate in a way that reflects our core values,which we have identified as Fairness and Respect, Honesty and Integrity, Teamwork and Achievement.

Our people, business partners, community stakeholders and shareholders can feel confident that wewill uphold those values.

We have built on our vision developing the culture in the organization which is fundamental to oursuccess.

We have nurtured the many talented people within our operations and brought in new leaders with theskills required to take this company to a new level of performance and achievement.

We have added the organizational capabilities required to enable LGL to survive and grow as anindependent, mature company improving vital corporate functions such as finance, human resources,strategy, planning and communications.

These new capabilities have underpinned a dramatic improvement in the operational performance ofthe company, with record gold production of 701,000 ounces achieved in 2007, along with recordmaterial movements and process plant tonnages at the Lihir Island operations.

We have also embarked upon a range of important projects during the year.

Geothermal Power Plant Expansion

The first of these was the expansion of our unique geothermal power station at Lihir Island. Thegiant Lihir gold deposit sits in the crater of an extinct volcano. While there is no longer anyvolcanic activity, the ground temperature remains very hot up to 130 degrees Celsius in places.

While this has created challenges for mining, it also has presented us with a great opportunity, totap that residual energy to generate geothermal power to run the process plant.

We commenced producing geothermal power in 2003 with the pilot 6MW power plant, then we built a30MW power plant in 2005, and then last year we added another 20MW, taking total power capacity to56MW, which supplies approximately 75% of our existing electrical power demand.

The timing could not have been better, as we have progressively expanded geothermal power output asglobal oil prices have climbed to approximately $130 per barrel.

Geothermal power is now saving the company in the region of $50million per year compared to thecost of using Heavy Fuel Oil.

And in addition, it is environmentally beneficial, reducing greenhouse gas emissions and enablingus to generate carbon credits, worth some $6million per year.

Process Plant Expansion

A second major project completed in 2007 was the expansion of the process plant.

Additional milling capacity was installed along with a flotation circuit, which allows moreefficient use of the processing equipment by enabling us to produce a concentrate to blend with thedirectly fed ore to provide a more consistent feed into the autoclaves.

LGL Annual General Meeting 21 May, 2008 Managing Directors Address to Shareholders

Page 3.

The expansion is instrumental in lifting gold production in the current year, and importantly, italso provides greater flexibility and reliability by duplicating parts of the process chain.

Million Ounce Plant Upgrade

The 2007 expansion of the process plant, however, represents only the first stage in the necessaryexpansion of the processing capability on the island.

As the Chairman pointed out, the next step in the evolution of Lihir Island is the Million OuncePlant Upgrade project, announced in February this year.The project will lift gold production capacity to approximately 1million ounces per year from2011, reduce unit operating costs by approximately $80/oz and significantly improve our operationalreliability.

This upgrade will lift the Lihir Island operation to the appropriate scale to extract full valuefrom the current 23million ounce reserve.

It will enable us to process much more of the ore that we mine, reduce stockpiling and recover anadditional million ounces than would otherwise have been the case with the existing plant.

The proposed upgrade will involve the installation of one additional autoclave of twice thecapacity of each of the three existing autoclaves, as well as additional crushing, grinding,thickening, oxygen, and leach plant facilities.

So an important aspect of the expansion is that it again adds further duplication to parts of theprocess plant, which will improve our operational flexibility and help us to consistently meetproduction targets.

We are already well advanced in planning, and have placed orders for major items with long leadtimes.

At a capital cost of $696million, and with further investment planned for additional geothermalpower capacity, this is a major project, but it will create significant value for shareholders, andwe look forward to its successful completion in stages over the coming years.

Financial Restructure

Another major initiative of 2007 was the financial restructuring that we announced just prior tolast years AGM.

This was a company transforming event, raising A$1.2billion from shareholders which was used torepay a 480,000 ounce gold loan, eliminate the hedge book, close out secured debt and providefunding for on-going development.

It was a major success and the timing turned out to be very fortuitous. The hedge book and goldloan were closed out at an average gold price of approximately $695/oz, and the gold pricethereafter continued to rise to more than $1000/oz. So at current gold prices of approximately$900/oz, the transaction effectively has generated in the vicinity of $300million for the company.

Shareholders who participated in the offer, purchasing new shares at a price of $2.30, also havedone very nicely, and the market response to the removal of the hedge book was resoundinglypositive.

LGL Annual General Meeting 21 May, 2008 Managing Directors Address to Shareholders

Page 4.

Ballarat Merger

In addition to the many changes being implemented at the Lihir Island operations and corporately,the company also continued the development of the Ballarat mine which was brought into the groupthrough the merger with Ballarat Goldfields, completed in early2007.The Ballarat merger was the companys first expansion off Lihir Island, and it commenced theprocess of providing greater diversification of the companys operations, which will lead to accessto multiple cashflows and reduced risk for shareholders.

During the year, the focus at Ballarat was on the development of the underground declines andventilation infrastructure required to enable us to access the ore bodies and commence productionby the end of this year.

We made excellent progress, and despite a rock fall in the main decline late in 2007 we remain ontrack to start producing commercial quantities of gold in 2008, rising to annual production ofapproximately 200,000 ounces per annum.

We remain confident that Ballarat will ultimately be a consistent, low cost gold producer for thenext 20years

Equigold Merger

As explained by the Chairman, the merger with Equigold represents the next step in that process ofbuilding a diversified gold major.Although a relatively small transaction, with Equigold capitalized at only one sixth the value ofLGL, the merger will immediately improve the production profile and diversity of the company.

Equigold will add the steady 100,000 oz producer at Mt Rawdon in Queensland to the LGL stable, andwithin the next couple of months, will be producing from Bonikro in the Ivory Coast.

Perhaps most importantly, the merger also provides us with an entre to one of the most prospectivegold exploration areas in the world the Birimian Greenstone Belt, which has hosted many millionsof ounces of gold discoveries in neighboring countries.I am confident that the merger will create great value for shareholders of both LGL and Equigold.

Outlook

The outlook for the company remains very positive.

Following the successful merger with Equigold, the combined group will have a stable of world classassets in Australia, West Africa and Papua New Guinea, producing in excess of 1.2million ounces ofgold a year from 2009 at a cash cost in the lowest quartile of global producers.

At Lihir Island, the record production rates we achieved in 2007 are expected to be eclipsed in thecurrent year.

The first quarter production of 139,000 oz of gold was broadly in line with our expectations,taking into account the planned shutdown of the process plant for maintenance during the period.

We remain on track to achieve our stated full year production target of between 700,000 770,000ounces.

At Ballarat, we remain on schedule to produce gold in commercial quantities by the year end, andare forecasting total output of 40,000 50,000 ounces

LGL Annual General Meeting 21 May, 2008 Managing Directors Address to Shareholders

Page 5.

Assuming the Equigold merger is approved by Equigold shareholders at the Scheme meeting on May30,and the transaction is then completed in June, we would expect to report production from Mt Rawdonof approximately 50,000 ounces for the remainder of the year.Bonikro is forecast to commence production in July, and should contribute in the vicinity of 60,000- - 70,000 oz of gold in 2008.

Together, that means production in 2008 should total more than 850,000 oz, which should lead to asignificant improvement in operating cash flows and earnings in the current year.

Conclusion

2007 was a successful year for the company. You can see that we have made good progress in creatingat LGL a major gold producer with a diversified portfolio of assets that enables us to consistentlymeet our production targets and generate growing returns for our shareholders.

We still have work to do and challenges ahead of us.

But we have a robust strategy that we are executing to plan.

We have good people working with us, and I take this opportunity to thank all our employees andbusiness partners for their dedication and hard work.

I also would like to acknowledge the strong support and wise counsel of the Chairman, Ross Garnaut,and my fellow directors.

And finally, I thank you, the shareholders, for your support and interest in the company. I lookforward to reporting further good progress over the remainder of 2008.

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Stock market codes:

ASX LGL
NASDAQ LIHR
PoMSOX LGL
TSX LGG

21 May2008

Company Announcements Office
Australiana Securities Exchange Limited
Exchange Centre
Level 6
20 Bridge Street
SYDNEY NSW 1215Dear Sir/Madam

Results of voting of 2008 Annual General Meeting

In accordance with Listing Rule3.13.2, I confirm that the resolutions put to shareholder at thecompanys annual general meeting held in Port Moresby today were each passed by votes taken on ashow of hands. The resolutions related to the following matters:

1. Financial Statements and Reports

2. Re-election of Dr Ross Garnaut

3. Re-election of Mrs Winifred Kamit

4. Re-election of Mr Bruce Brook

5. Re-appointment of the Auditor

6. Award of share rights to the Managing Director under the Lihir Senior Executive Share Plan.

The table on the following page discloses proxy votes in relation to each of these resolutions.

Yours faithfully

Stuart MacKenzie
Group Secretary and General Counsel

7th Floor, Pacific Place

Lihir Gold Limited

Phone: +675 321 7711

Cnr. Champion Parade & Musgrave Street

Incorporated in Papua New Guinea

Fax: +675 321 4705

PO Box 789 Port Moresby NCD 121

ARBN 069 803 998

Website: www.LGLgold.com

Papua New Guinea

Stock market codes:
ASX LGL
NASDAQ LIHR
PoMSOX LGL
TSX LGG

Lihir Gold Limited
Annual General Meeting 21 May2008

Disclosure of Proxy Votes

The following information is provided to the Australian Securities Exchange Limited in relation toresolutions passed by members of Lihir Gold Limited at its Annual General Meeting held on 21 May2008:

The proxy is to The proxy is to The proxys is to The proxys may

vote for the vote against the abstain on the vote at the proxys

Resolution No: resolution resolution resolution discretion:

1. Financial Statements and Reports 1,152,935,585 372,864 3,979,522 3,301,040

2. Re-election of Dr Ross Garnaut 1,152,160,137 4,132,261 498,565 3,469,831

3. Re-election of Mrs Winifred Kamit 1,140,800,994 15,683,158 598,903 3,505,233

4. Re-election of Mr Bruce Brook 1,153,845,530 2,693,816 546,999 3,502,666

5. Re-appointment of the Auditor 1,154,769,333 1,806,182 515,882 3,501,614

6. Award ofShare Rights to the Managing Directors under the LihirSenior Executive Share Plan 1,057,718,493 96,489,712 2,802,087 3,298,749

7th Floor, Pacific Place

Lihir Gold Limited

Phone: +675 321 7711

Cnr. Champion Parade & Musgrave Street

Incorporated in Papua New Guinea

Fax: +675 321 4705

PO Box 789 Port Moresby NCD 121

ARBN 069 803 998

Website: www.LGLgold.com

Papua New Guinea

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has dulycaused this report to be signed on its behalf by the undersigned, thereunto duly authorised.

LIHIR GOLD LIMITED

By:/s/ Stuart MacKenzie

Name: Stuart MacKenzie
Title: Group Secretary & General Counsel

Date: May21, 2008

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