Pike River's West Coast mine. Photo / Greg Bowker
Pike River Coal has reported a $1.14 million loss for the year to the end of June, which the company said reflected the development phase of its new mining operation and related one-off costs.
First production of premium hard coking coal from the new Pike River mine under
the Paparoa Range on the West Coast was due by the end of September, with 200,000 tonnes due to be mined by June 2009.
Chief executive Gordon Ward said the outlook for the year to June 2009 was positive with forward orders in place and prices for premium hard coking coal tripling to US$300 ($433) per tonne for first coal sales compared to a year ago.
During the next few years, hard coking coal demand was forecast to remain high, Ward said.
The loss for the latest year, while somewhat less than market expectations, was not particularly relevant with first coal production yet to happen.
"One of the really positive outcomes has been the highly successful capital raisings during the year, attracting investors nationally and offshore, to raise more than $182m from the debt and equity markets in a financial environment best described as challenging," Ward said.
That was a reflection of the high value coal resource, the cutting edge mine infrastructure the company had built, experience of the management team, and Pike River's attraction as this country's only listed coal stock.
Recruitment had gone well with more than 80 staff now employed, he said.
The most exacting task of the mine development had been the 2.3km access tunnel to the Brunner coal seam, which was nearly finished, but had been made more difficult in the final section by variable rock conditions.
The company was in a strong position for making good progress once coal was reached, said Ward.
- NZPA
