Corporate

"The strengthening of our development pipeline in 2007 bodes well for additional ore sources at Broken Hill and diversified metal and revenue streams in future years.”

Perilya's strategic focus is on investment in sustainable growth.  The Board and executive team are focussed on increasing production, increasing profit margins, diversifying revenues, and growing the business though mineral exploration, new project developments and merger and acquisition opportunities. 

An EBITDA of $46.4 million for the first half of the 2007/08 financial year was up 99 per cent on the June half year.  Net profit after tax was $12.0 million, or 6.1 cents earnings per share, representing an 88 per cent increase over the June half year.

The result, which was an improvement on the June half year, reflects the 18 per cent decrease in average zinc price and 60 per cent increase in the average lead price during the period, lower than expected production at Broken Hill and the first ore sales from the Flinders project

Perilya’s balance sheet remains strong, with cash at 31 December 2007 of $134.6 million and debt of $24.2 million.

The company is continuing with its plans to extend the life of the Broken Hill mine and develop new ore sources from the neighbouring Potosi, Flying Doctor and North Mine projects.  It is also fast tracking its development pipeline in Broken Hill, Flinders in South Australia, and Mount Oxide in Queensland, and is actively seeking to expand the business into multiple earnings streams

An exploration decline at Potosi is continuing and trial mining of ore commenced following the successful delineation of a 2.36 million tonne mineral resource. A feasibility study into extending the existing North Mine operation to access the high grade zones at depth has also commenced.

Spot sales and an off-take agreement with Padaeng IPC Limited have confirmed the demand for intermediate grade zinc silicate of direct shippable ore from the Beltana mine in South Australia.  This effectively underwrites the development costs associated with the mining and stockpiling of approximately 101,000 tonnes of contained zinc from the Beltana pit at the Flinders project.

The Mount Oxide copper project in Queensland received a significant boost when the mineral resource was upgraded by 80 per cent to 203,000 tonnes of contained copper on 19 February 2008. The Board has approved an aggressive infill and extension drilling program commencing in April 2008 to enable completion of a feasibility study in early 2009.

Capital management will continue to receive due consideration over the coming year, taking into account the funding requirements associated with our growth strategy and efficient use of capital.

The company is financially well positioned to fund both its current pipeline of development projects as well as consider new business opportunities.

Employee ownership in Perilya's future success has been fostered through the  Employee Share Acquisition Plan, which provides both an introductory grant of shares and an opportunity to co-invest in Perilya matched by company contributions.