Western Australian lead and zinc miner Perilya finds itself in a very positive cash situation and is on the look out for acquisitions, the company said yesterday.
After a November one-for-three share rights issue that raised about $55.2 million, Perilya had a cash reserve of $116.7 million at the end of 2009, up from $46.2 million at the end of the September quarter.
The company’s mining operations also generated $16.1 million in the December quarter thanks to the continuing strengthening of the price of both zinc and lead.
“The company experienced another very strong cashflow accretive quarter from operations which, coupled with the funds raised via the rights issue, places the company on a very sound footing,” Perilya chief executive Paul Arndt said.
“(Perilya can) pursue both internal growth opportunities … and external opportunities that may present themselves.”
According to Arndt, the company will use a portion of the funds to evaluate satellite ore deposits in New South Wales, South Australia and Queensland.
“While these projects are at various stages of progress, from exploration through to feasibility, it is anticipated that in the coming months some of these projects will go before the Perilya board for development decisions,” he said.