Perilya (ASX: PEM) replied to a query from the Australian Stock Exchange on share price and volume increases.
The company said it was not aware of any information that would explain the increase in share price from $0.51 to an intra day high of $0.61 on 2 December 2009.
However, the company said in a statement the price for its two core products, lead and zinc, increased significantly in the last few days. And that the spot price silver has increased by over 40% in US dollar terms since Perilya announced it had bought back its future silver production in July this year.
Perilya is Australia's largest dedicated producer of zinc, lead and silver. Hence, it said, its exposure and leverage to movements in base metal and silver prices is material.
As well, the company said its previously announced significant reduction in its C1 cash costs of production per pound of zinc, benefit cash flows and profitability, from movements in base metals and silver prices.