The gold major said the boosted financials reflected improved performance at its cornerstone Lihir Island operation, higher gold prices and the contribution of the company's completed merger with Equigold.

Earnings before interest, tax, depreciation and amortisation were $389 million, up 42% on 2007.

Mine operating costs rose 51% to $463 million, an increase Lihir attributed to rising cost pressures, greater volumes at Lihir Island, and the addition of the Equigold mines.

Full-year gold production across all operations was above guidance at 882,000 ounces, a 26% lift on 2007 output.

Total gold cash costs clocked in at $400 an ounce, up 34% on 2007's figure of $299, however the total cash price lifted 28% to $850/oz.

The miner expects to rein in 2009 total cash costs to below $400/oz.

At the end of the year Lihir's cash balance stood at $64.7 million.

The figure was down 63% or $109.5 million on 2007's position, a situation the miner said was chiefly due to capital expenditure and a $49.7 million hedge book-related pre-acquisition advance to Equigold.

Lihir forecast continued growth for the current year with annual gold output tipped to be in excess of 1 million ounces.

In other Lihir news out today, an upgrade to the Akissi-So deposit, near Bonikro in Cote d'Ivoire, has boosted the measured and indicated resource for the West African project to 1.4Moz.

Shares in Lihir gained 2% in intra-morning trading to $3.63 before easing to $3.59.