Lihir Gold has reported an annual profit and expects a further improvement in 2009, when it will see a full year's contribution from mines acquired under its takeover of Equigold.
Shares ended the day down 3 cents, or 0.8%, at $3.53.
Its net profit for the year ended December 31 was $US109.3 million ($171.02 million), compared to a loss of $US24.1 million in 2007.
Its underlying net profit, before non-cash hedging loss and one-offs, rose 53.6% to $US184.9 million ($289.31 million).
Managing director Arthur Hood said Lihir, which operates mainly in Papua New Guinea, was looking for continued growth in 2009 as it establishes itself as a major global gold producer.
Total gold production is forecast to increase to another record of more than one million ounces from its Lihir Island, Bonikro, Mt Rawden and Ballarat operations.
"The next 12 months will continue the growth journey for Lihir and I look forward to reporting a solid improvement in operating and financial performance for 2009," Mr Hood said.
Gold production in 2008 was 882,000 ounces, up 26% from 2007.
Mr Hood said falling oil prices and favourable exchange rate movements in the final quarter of 2008 would have a beneficial impact on costs in the current year.
"Total cash costs for the group are expected to be less than $400 per ounce for the full year, excluding Ballarat," he said.
Lihir did not declare a dividend.