perilya fy06 dramatic turnaround yields 67m profit

RWE Aust Business News :

Perilya's FY06 dramatic turnaround yields $67m profit
Thursday, 31 August 2006

Perilya Ltd (ASX:PEM) reported a net profit of $67 million for the year to June 30 2006, compared with a loss of $6.1m in the prior year.

This outcome reflects the $13.3m write down of Daisy Milano.Revenue was $345m against $193.2m previously. A fully franked final dividned of 4c brings totals for the year to 5c.

Earnings per share was 35.6c against a loss of 3.6c previously. Chief executive Len Jubber said the dramatic turnaround was largely driven by a strong rise in zinc and lead prices and reflected a substantial improvement in the performance at Broken Hill.

"Settlement of the Broken Hill deferred acquisition liability of $55 million four years ahead of schedule, not only highlights the cash generating capability of the operation, but will also facilitate investment in our growth strategy," he said.

"Increasing the ore reserves and further extending the mine life at Broken Hill to beyond 10 years are important cornerstones in
positioning Perilya for sustainble long term growth." Perilya shares were up 3c to $3.08.