Price may reach US$1,500: Lihir Gold

“There's been talk this week of US$1,500 and I see that as perfectly achievable,” Chief Executive Officer Arthur Hood told Australian Broadcasting Corp. television Sunday.

Gold reached a record US$1,062.70 an ounce this week as the slump in the U.S. dollar boosted demand for the metal as a store of value and central banks increased their percentage of gold reserves. Investor Jim Rogers has tipped a price of more than US$2,000 in the next decade.

“We are long on gold and that would be great if that were to happen,” Hood said, referring to forecasts of a potential doubling of the price. “As China's reserves increase, its proportion of gold stays the same so that in its own right will increase demand from central banks.”

Lihir Gold shares closed Friday at A$3.13 and have gained 4 percent this year. That compares with the 28 percent rise in the benchmark S&P/ASX 200 index.

In addition to its deposits in Papua New Guinea, Hood said the company's holdings in Cote d'Ivoire in Africa will bolster growth and reduce any need to consider acquisitions.

“West Africa is the hot spot in the world now for new gold discoveries and we've already added a million ounces of resources in west Africa around our Bonikro mine,” Hood said. “We're really not worried about acquisitions at the moment, our key focus is organic growth.”

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