Perth-based gold and base metals miner Perilya Ltd has posted an annual unaudited net profit of $67 million, up from a $6.1 million loss from the 2004-05 financial year.
Perth-based gold and base metals miner Perilya Ltd has posted an annual unaudited net profit of $67 million, up from a $6.1 million loss from the 2004-05 financial year.
The profit came after a $13.3 million write down of its Daisy Milano gold mine, to reflect current production levels and operating efficiencies.
The full text of a statement from the company's chief executive is pasted below
Perilya today announced a $67.0 million net profit after tax (including a $13.3 million after tax write down of Daisy Milano), or 35.6 cents per share, for the 2005/06 financial year. This represents an $80.3 million underlying net profit after tax for the year.
In announcing the record result, Perilya's CEO, Len Jubber said "whilst the dramatic turnaround from the previous year's result was driven largely by the strong rise in zinc and lead prices, it also reflected a substantial improvement in the underlying performance of Broken Hill. The earnings from these operations in 2005/06 have more than paid for the purchase of the original asset in 2002."
"The impact of the increased metal prices and production largely flowed through to the bottom line, with productivity improvements and cost containment restricting direct cost increases to less than five per cent at Broken Hill," he said.
In line with its inaugural interim dividend in February 2006, Perilya announced a four cents per share fully franked final dividend, bringing the total dividends for 2005/06 to five cents per share.
"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," said Mr Jubber.
"Increasing the ore reserves and further extending the mine life at Broken Hill to beyond 10 years are important cornerstones in positioning Perilya for sustainable long term growth."
"In this regard, we will pursue development of the Potosi exploration decline and the technical evaluation of North Mine Deeps project, whilst focusing exploration on extending the Southern Operation and North Mine ore reserves," he said.
"This has been an outstanding year for shareholders and employees. Our confidence in the zinc market coupled with our people and asset development activities and strong financial position with net cash and receivables of $155 million augers well for all stakeholders in Perilya," Mr Jubber concluded.
