Investor Information

Perilya Limited (PEM) is an S&P/ASX 200 listed company that has delivered exceptional financial returns to shareholders over the last year.

Key outcomes for 2006/07 include:

• Net profit after tax increased by 23 per cent to $82.5 million on the back of significantly higher zinc and lead prices (FY2006: $67.0 million).

• The cash flow from operations reduced by 21 per cent to $132.1 million (FY2006: $166.0 million), however last year’s cash flow included $46.8 million from the one off sale of future silver production from Broken Hill.

• Investment of $18 million from operating cash flows into the development of two new mines at Potosi and Beltana.

• Increased exploration expenditure to $15 million.

• Cash (including restricted cash) at 30 June of $173 million and debt of $15.7 million. A very strong balance sheet to support our growth strategy in coming years.

• 25 per cent of earnings returned to shareholders in the form of fully franked dividends. Total dividends in FY2007 of 11 cents per share, 120 per cent increase over prior year (FY2006: 5 cents per share).

•  Perilya has purchased options over 50 per cent of its annual lead production for FY2008 and FY2009 at historically high prices. These options guarantee a minimum price (net of the option cost) of US$2,414 per tonne in FY2008 and US$1,845 for FY2009 yet provide full upside should spot prices exceed these levels. These option prices compare favourably to market consensus forecasts of US$1,450 per tonne for FY2008 and US$1,080 per tonne for FY2009.

• The Australian Dollar strengthened considerably against the US Dollar during FY2007, rising from 74 cents to just under 85 cents by the end of the financial year. As part of our revenue protection strategy the company has acquired call options to protect against currency exposures above 83 cents for the next 12 to 18 months, whilst maintaining benefits to a weakening AUD.