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Perilya posts 350% net profit lift
14/02/2007 By: Georgia Fekete

Australian zinc and lead mining company Perilya Limited (PEM) today announced a record $76.1 million net profit after tax and earnings per share of 39.8c for the first half of fiscal '07. The profit result represented a 350% increase over the previous corresponding period.

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CEO Len Jubber said the first half result reflected continued consistency of operations at Broken Hill coupled with a further increase in zinc and lead prices.

“The significant increase in earnings has further strengthened the balance sheet, with cash and receivables up 47% to $238.3 million. The past six months has seen substantial progress in positioning Perilya for sustainable growth,” he added.

The company expained that the board had approved both the development of an exploration decline at Potosi to assess the potential for a third ore source at Broken Hill and the development of the Flinders zinc project in South Australia.

Furthermore, Perilya said resource drilling at the Mount Oxide copper project has confirmed the geological interpretation and continuity of mineralisation, as well as indicating the potential for extending the known mineralisation.

“All of these bode well for additional metal production in future years,” said Mr Jubber.

The company noted that they continue to evaluate organic growth and acquisition opportunities in the current buoyant commodities market.

Perilya announced a 10c interim fully franked dividend to be paid out of the 39.8c earnings per share for the half year.

At 1503 AEDT shares in Perilya were trading 12c higher at $4.76.