Sept. 12 (Bloomberg) -- Perilya Ltd., an Australian zinc and lead producer, rose the most in 17 years in Sydney trading after Credit Suisse Group boosted the company's rating, saying the stock is ``well below'' its value. Perilya jumped 61 percent to 33 cents on the Australian stock exchange, making it the benchmark index's biggest gainer. Perilya has lost more than 88 percent of its market value this year.
Credit Suisse upgraded the stock to ``outperform'' from ``neutral'' in a note released today, saying the net recoverable cash on Perilya's balance sheet and its bonds were worth A$67.4 million compared with its market valuation yesterday of A$40 million.
The rise in Perilya's share price today has taken its market value to A$65 million.
``We see this stock as too cheap'' given Perilya does not pose a solvency risk, the note said.
September 12, 2008 - 4:49PM PEM - PERILYA LTD - up 12.5 cents, or 60.98 per cent, to 33 cents
Perilya is to gain a 73 per cent interest in Chalice Gold Mines after the junior gold explorer agreed to issue the lead and zinc miner with 200 million new shares as consideration for Perilya's Mount Oxide copper and cobalt project in Queensland.
Zinc production was higher as a result of one-off production at Perilya's Beltana mine in South Australia and increased production at Century, Cannington and Mt Isa mines in Queensland.
12/09/2008 5:41:00 AM. | AIR With a growing list of companies, from miners like Perilya and CBH, to Qantas, to Allco, MFS, Southern Pacific Tyres, General Motors, Don Small Goods, Fairfax and this week the ANZ, jobs are obviously being shed. Around 380 jobs have gone, or are going in the Cobar area where mining company, CBH is restructuring.
0111 GMT * Miner Perilya Ltd (PEM.AX Price Change % Change 0.330 +0.125 +60.980% PEM.AX , 0.330, +0.125, +60.980%) rose 26.8 percent to A$0.26 after it said on Thursday it had sold its interest in an Australian project to focus on zinc and lead mining.
September 12, 2008 09:00:00 Perilya Limited has announced it is selling its Mt Oxide Copper Project at Mount Isa in north-west Queensland so it can focus on its assets in Broken Hill in far western New South Wales. Perilya has agreed to sell its interest in the project to Chalice Gold Mines Limited. Perilya executive chairman Patrick O'Connor says the sale will allow Perilya to focus on zinc and lead assets in Broken Hill and the Flinders Project in South Australia. Mr O'Connor says the company wants to concentrate its efforts on its Broken Hill operations to ensure they stay viable in the face of low metal prices.
PEM Price at posting:
29.7¢ Sentiment: None Disclosure: Held
