Newcrest Q4 gold output jumps 26%

The gold miner also came one step closer to finalising its bid for Lihir Gold after an independent expert backed its cash and scrip offer

SYDNEY (Reuters) - 

Newcrest Mining (NCM.AX: Quote) on Thursday posted a 26 percent rise in fiscal fourth-quarter gold output and came a step closer to sewing up its A$9.9 billion ($8.68 billion) takeover of rival Lihir Gold (LGL.AX: Quote).

An independent expert backed Newcrest's cash and script offer for Lihir, clearing the way for shareholders to vote on the deal to create the world's fourth-biggest listed gold miner.

"The proposal is in the best interest of LGL shareholders in the absence of a superior proposal," independent expert Grant Samuel and Associates said, according to Lihir.

The offer currently values Lihir at around A$4.18 a share, or A$9.9 billion.

AngloGold Ashanti (ANGJ.J: Quote), Barrick Gold (ABX.TO: Quote), and Newmont Mining Corp (NEM.N: Quote) have also looked at Lihir's books but none were likely to launch rival bids, according to sources close to the deal.

Lihir shares have been trading just below the offer value since Newcrest improved its bid in May, indicating investors expect the deal to go ahead, with no other suitors in sight.

Newcrest welcomed the findings and said it hoped to complete the acquisition by Sept. 13, 2010.

Newcrest' full-year 2009/10 output rose 8 percent to 1.762 million ounces.

The company in April predicted full-year output would be between 1.81 million and 1.91 million ounces.

Newcrest shares were trading 0.7 percent lower at A$33.90, while Lihir was 0.02 percent down to A$4.08, broadly in step with a modestly weaker wider market . (Reporting by James Regan, Sonali Paul and Michael Smith; Editing by Ed Davies)

© Thomson Reuters 2010 All rights reserved

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