Speeding Ticket received
Usual response - I know nothing except "the recent lower Australian dollar value against the US dollar has a positive impact on revenue". Could indicate upcoming report might be better than expected. Morningstar put a BUY recommendation on PEM this morning.
Perilya Limited's soaring shares attracts ASX attention
Monday, July 22, 2013 by John Phillips
Perilya Limited (ASX: PEM) shares have soared 62.5% to $0.195 intra-day today, compared to the closing price a fortnight ago - with the company receiving an ASX 'speeding ticket' in the form of a Price Query.
Perilya said that it had no explanation for the recent investor interest, but did note in a response back to the ASX that the lower Australian dollar value against the US dollar has a positive impact on revenue.
The company operates the Zinc, Lead and Silver mine in Broken Hill, and the Cerro de Maimn Copper, Gold and Silver mine in the Dominican Republic.
The Cerro de Maimn mine produced 2,573 tonnes of copper for the March quarter 2013, while gold and silver production outperformed this period with a total production of 4,193 gold ounces (+35%) and 97,930 silver ounces (+24%).
Actual net C1 cash costs for the period was US$0.85/lb of payable copper in-line with full year guidance of US$0.80 1.00/lb of payable copper.
For the year ending December 2012, Perilya produced a net profit after tax of A$27.72 million, and a strong net operating cash flow of A$65.19 million on the back of operating revenue (net of treatment & refining charges) of A$353.79 million.
Good spot of research marieclaire01.
Have they shifted their focus? They seem to have only one interest in Australia now and the one in the Dominican Republic. Before they had several in Australia and one in Malaysia.
According to their website they hold the following
Cerro De Maimon
Broken Hill North Mine Deeps
Broken Hill Potosi
Broken Hill Extended
Broken Hill Southern Extensions
Nickel Laterite Exploration
Cuance-Los Hojanchos Joint Venture
ASX queries miner Perilya's stock surge
By Jack Marx
Posted 2 hours 41 minutes ago
Perilya mine sign at Broken Hill Photo: Perilya mine sign for Broken Hill southern operations, 2009 (Emma Sleath: ABC)
Map: Broken Hill 2880
The ASX has issued Perilya with a "please explain" as to why the company's shares have spiked sharply in the last seven days.
Share prices in the Perth-based mining company rose from 12 cents last Monday to 19.5 cents yesterday.
Perilya runs two lead, zinc and silver mines in Broken Hill and another in the Dominican Republic.
The surge comes on the eve of Perilya's quarterly statement, causing speculation as to what may be revealed in the report.
But Perilya's CEO Paul Arndt says there's no big deal.
"There has certainly been a trend with the Australian dollar weakening that helps us as it does other Australian exporters, so that our profitability will improve in the long term," he said.
"But other than that it's just a question of the fluctuations that occur if you have someone that is selling a large block or buying a large block."
But independent minerals and commodities analyst Peter Strachan wonders what the long answer might be.
He says unusual spikes on the market can sometimes signify a looming takeover, though Mr Strachan admits that is unlikely in Perilya's case given market uncertainty.
"I wouldn't see at this point in the market that there would be a takeover," Mr Strachan said.
"I could be wrong - I'd like to have a dollar for every time there's been speculation of a takeover and it didn't happen, so I think not.
"I think it's more likely just one of those random warp things we see in the market from time to time."
If I were answering the 'speeding ticket' for the company, I would reply: ...
We have no unannounced news to explain why the share price dropped so dramatically in the first place, nor why it has partially rebounded. We would note that the Australian dollar has recently weakened, and that the gold price is rising. For further detail, please refer future volatility enquiries to goldprice.org. Have a nice day.