PEM - Perilya Limited

[Plasmo]

ha ha....I totally agree with you.

I have no idea what is driving the price down Zinc, Copper and Silver have increase greatly in Price,.

Bin Larden's in a mountain in Afgan I tells ya.

Uh, Chinese ramping up Zinc production and becoming a net exporter rather than importer might have something to do with it? Anyone considering investing in Zinc would be wise to take note of that.

 

[countryboy]

my understanding is that CBH initiated the deal with PEM. PEM have really been directionless as to its future apart from a short lived play at Heron.

My two cents worth is this project just 15km out of Broken Hill Pinnacles Mines: released a jorc statement of 400,000 tones lead,51 million ounces of silver, 575,000 tonnes of zinc, 12,000 tonnes of copper and 210,000 ounces of gold This was achieved off just 35% of the lease being drilled. geo Tim Hopwood put an estimate of 30 to 60 million tonnes on the resource.

This company is a private entity and will need some capital to mine this area.

get out the wallet PEM !

 

[countryboy]

Production out of Broken Hill increased by 22% for lead 22,000 tonnes and six percent Zinc: 13200 tonnes in the last quarter. Target for full year is 90,000 tonnes of zinc and 55,000 tones of lead.

Decreasing zinc price (and it has not tanked!) is offset by increased lead price.

 

[countryboy]

60% upgrade of Flying Doctor Resource to 104,600 tonnes of contained zinc and lead.
Perilya Limited (ASX: PEM) is pleased to announce a 60% increase in the mineral resource estimate for the Flying Doctor lead and zinc deposit to 1,450,000 tonnes @ 3.2% zinc, 4.0% lead and 44g/t of silver. Flying Doctor is located approximately five kilometers north of company’s Broken Hill Southern Operations and two kilometers north of the Northern Operations.

looks like an open pit to 200m depth

plenty more ore to pul out of Broken Hill

 

[doogie_goes_off]

Looks like i'll be back in black before you know it. PEM is the sleeping giant IMHO. I am holding on with white knuckles incase the ride starts (also grinding my teeth incase they fall more)

 

[GREENS]

Have to say Perilya is not looking to crash hot at the moment with zinc and lead prices taking a beating. In the last quarter out of memory I think they had an operating cash cost of $US0.94/lb for zinc. No wonder they had no choice but to merge with CBH and there share price is where it is at the moment. Anyone know how long until CBH’s (Broken Hill) CML mine starts production and feeding its ore into PEMs broken hill concentrator? As this should cause costs to decline significantly from their current levels.

 

[countryboy]

Queensland, 100 per cent ownership, Copper

An 80% increase (announced on 28 February 2008) in the Mount Oxide mineral resource estimate to 203,000 tonnes of contained copper, together with the majority Indicated status of the resource, strengthens the project’s potential for development in the current strong copper market.

Mount Oxide has considerable potential as a low cost near term development project. Mount Oxide is located in a proven mineralised system in the highly prospective Mount Isa region and is part of Perilya’s 720 square kilometre tenement holding in this area. It is close to existing infrastructure.

Within the project area, Mount Oxide mine produced 51,000 tonnes of secondary copper ore at a grade of 21 per cent copper from an underground mining operation to a depth of 90 metres below surface, prior to 1958. Between 1968 and 1971, an unknown quantity of ore was also extracted from an open pit at the mine.

The potential of the deposit was proven by previous shallow open cut mining and the resource is open at depth. Mount Oxide is located 25 kilometres from an under-utilised processing facility and close to a major mining service town.


drilling was to start in April 08

had to post something positive about this stock as it continues to drop

 

[Synergy]

Relief perhaps in sight for you countryboy, some nice drill results released today:


Perilya Limited (ASX: PEM) is pleased to announce spectacular drill intercepts at depth below the main Mount Oxide
resource, including:

- 22m @ 6.3 % Copper and 0.3 % Cobalt from 258m;
- 19m @ 3.7 % Copper from 315m;
- 31m @ 6.2 % Copper from 346m; and
- 23m @ 8.9 % Copper from 395m.

The high grade intercepts occur in one hole between 258m and 418m downhole.

Perilya’s Executive Chairman, Patrick O’Connor, said that the intercepts highlight Mt Oxide’s upside potential for expansion.

“These intercepts are outside of the current resource and have significant prospects at depth.”

“The results are particularly encouraging for either defining a high grade underground resource or deepening the planned open pit,” he said.

Drilling commenced in April with two diamond rigs to infill and expand the current resource of 203,000 tonnes of copper
and to define the potential of the project.


Interesting to see what effect they have on a stock in such a heavy downtrend...

 

[countryboy]

i sold on todays small rise....massive loss
will look to buy into CBH at around 20c close to the merger date

cancelled a stop loss at around $3.40

 

[cordelia]

i sold on todays small rise....massive loss
will look to buy into CBH at around 20c close to the merger date

cancelled a stop loss at around $3.40

I bought these at 3.40....sold at 1.92....I lost heaps too

This was the biggest loss I have ever had. Taught me a real lesson about entry and exits. I know its hard but try and learn from the experience. I know exactly what I did wrong which is something positive

 

[BAM]

Hi
Does anyone have any new thoughts on PEM?
Closed down again. How do people think the merger will affect the stock?

Released positive drilling results today, any thoughts?
Can you see a recovery in the mid-term?

 

[Max_ob]

i bought at $1.03 and am still holding at a close of .68 after a good announcement . . . .

am slowly learning about stop losses myself. . . .


merger hopefully be finished off soon and then maybe it will crawl back . . . maybe bottom draw it as i've heard other people say. . .

 

[aramis]

I bought in at 0.93 and am holding.

I dont really know why the share price is still falling, this company has too many positives. Zinc prices are falling true, but these guys have plenty of cash in the bank, so if zinc falls and smelters get closed down, that in itself will cause zinc prices to go back up (as supply will decrease) and as such, Perilya will be in a good position to sell at a higher price. Due to cash @ bank being so high, I doubt they will close anything.

Secondly, I suspect (mere speculation) that short-sellers are to blame for the share price falling so heavily... That is, people selling (by borrowing from an institution for example) at the start of the day and this in itself causing the price to fall and then buying towards the end of trade or once it has fallen enough for a profit.

I also suspect that many people have made losses on this stock so many people are crystalising their losses (i.e. selling the stock and then re-buying perhaps now or perhaps a bit later so see if it falls even more) before the end of the financial year in order to reap the tax advantages associated...

Overall, I think that the price of the stock right now is really good, and if I didnt get in at .93, I would have been buying much more of this right now. Its not about whether it will get back up, its about when.

As for people selling right now, why bother sell now? can it honestly get any worse? As some of the people already here mentioned, they got enough money in the bank, plus stockpiles of zinc, plus they are merging hopefully soon ... all these easily equate to a much higher share price than what it currently is at.

My feeling is, when this stock starts going back up (and I feel it will probably be July as soon as financial year has ended), it will start climbing fast as it appears to be undervalued for the above mentioned reasons.

Anyone think otherwise? give me your reasons and I'll be happy to discuss :

 

[Stan 101]

The issues with PEM are starting to compound now. Zinc is under $1US and is just about levelling with the cost to PEM to pull it out of the ground. Sure there are other metals pulled out of the tailings but for a basic, it's one for one. Lead is in the same boat.
At the point where there is such a price parity a business starts to dip into reserves.
The CBH merger is not a given. It is now trading at a premium to PEM. Who would want to vote to lower their share price? The answer may be n the synergies and savings by sharing overheads, getting the Rasp up and running at least 12 months earlier and a potential takeover bid with the new entity.

CBH's operating costs are not that much better than PEM and I cannot recall seeing any projected operating costs of the new entity.
People may be selling down PEM simply due to margin call. Remember this thing has been in basically freefall for nearly 12 months along with Zinc prices. I too thought it had bottomed at $1 but it sure proved me wrong and burnt me a bit. I jumped out at my loose stop loss.
The word Perilya is looked upon like a deviant term at the moment.

I've just looked at NAB margin and PEM and CBH is still at 60% leverage. That is a positive. Agius(?) still have a 12 month view of PEM to have them trading at $2.01 as of late may.
Zinc needs to bottom and start that long climb back before this share can really look like stabilizing.
Yes I think there is a future and why I held CBH and often traded it. Time will tell.
They could do worse than get a name change, a good publicist and an operations management audit. They need to get their costs down and turn this around. They also need to let people know of the change. A shakedown of the management team would be a bonus, too. No matter how they have really performed, there is a certain stench on them all in bourse circles.


Cheers,

 

[Miner]

The issues with PEM are starting to compound now. Zinc is under $1US and is just about levelling with the cost to PEM to pull it out of the ground. Sure there are other metals pulled out of the tailings but for a basic, it's one for one. Lead is in the same boat.
At the point where there is such a price parity a business starts to dip into reserves.
The CBH merger is not a given. It is now trading at a premium to PEM. Who would want to vote to lower their share price? The answer may be n the synergies and savings by sharing overheads, getting the Rasp up and running at least 12 months earlier and a potential takeover bid with the new entity.

CBH's operating costs are not that much better than PEM and I cannot recall seeing any projected operating costs of the new entity.
People may be selling down PEM simply due to margin call. Remember this thing has been in basically freefall for nearly 12 months along with Zinc prices. I too thought it had bottomed at $1 but it sure proved me wrong and burnt me a bit. I jumped out at my loose stop loss.
The word Perilya is looked upon like a deviant term at the moment.

I've just looked at NAB margin and PEM and CBH is still at 60% leverage. That is a positive. Agius(?) still have a 12 month view of PEM to have them trading at $2.01 as of late may.Zinc needs to bottom and start that long climb back before this share can really look like stabilizing.
Yes I think there is a future and why I held CBH and often traded it. Time will tell.
They could do worse than get a name change, a good publicist and an operations management audit. They need to get their costs down and turn this around. They also need to let people know of the change. A shakedown of the management team would be a bonus, too. No matter how they have really performed, there is a certain stench on them all in bourse circles.

Cheers,

Stan 101

Good thoughts and thanks

Question is who is going to convey PEM about what you suggested as they shoudl do etc. If they were smart enough to research and learn then our postings were not necessary and there was all green around PEM and CBH

If you refer to my old postings when I did say that CBH management is an incompetent ones and they have just made a good growth prospect into a sickening farce.

Probably CBH management shoud join with ABS Eddie and Bryerty Director to make a sick company and ask MK to be its chariman to make the full circle of incompetency

Sorry for frustration as in a rising resource market investors are just loosing money for their faiths being shattered by such unworthy management of PEM and CBH

 

[Stan 101]

Sorry for frustration as in a rising resource market investors are just loosing money for their faiths being shattered by such unworthy management of PEM and CBH

Are we really in a resource market that is rising? Can you give me some examples of this? The only commodity I've noticed (and I've not looked that hard) with a demand outstripping supply scenario is iron ore.

Cheers,

 

[Miner]

as reported in FN Arena today (11 June)

Macqquarie rates PEM as neutral . An increase in cost assumptons has led the broker to downgrade both PEM and CVH and the target for PEM falls from $2 to $1.

Disclaimer : I do not hold PEM

 

[oldblue]

As at 31 March 2008 PEM had $85.5m cash, 43cps, or 29cps net after debt of $28.2m. I wonder how quickly this is being spent?
The other question that exercises my mind is their hedging position. They had hedged a quantity of zinc forward in the 2008 financial year but not much further out. Seems to be a fair bit of lead sold forward. Does anyone have a handle on this and what the financial effect ( benefit) could be in the current year?

Disc: Don't hold but very nearly bought around $1, and still interested.

 

[Max_ob]

lucky you. . . . i did buy in at $1.03

and silly enough to still hold. . . .and not confident enough to average down right now

 

[kkyyoo]

it hits 0.55 today...

Bought it at $1 and still holding it

Hoping for some miracle to happen after the merger is done and the metal prices picking up as the OPEC meeting is being held to increase oil production to tackle the rising oil prices (which indirectly affect the metal prices )

not prepared to lose half of my money....

anyone has any idea what the hell is going on ? is it gonna go down again ?