Pike River's annual loss widens ahead of mining starting next month
Aug. 25 (BusinessDesk) - Pike River Coal's annual net loss widened, reflecting the continued development of its West
Coast mine.
The loss widened to $39 million for the year ended June 30, from $13 million a year earlier but it received payment of
$3.3 million for its first shipment of premium hard coking coal in February.
Hydro-mining, the main method Pike will use, is due to start next month.
Pike says a further $25.2 million was invested in the mine during the year, bringing the total invested to $288.1
million after $11.2 million of depreciation charges.
The company burned through $47.5 million in cash in the year, up from $7 million the previous year. Pike had $20.6
million of cash left at June 30.
Pike, which listed in May 2007, has been plagued with delays and cost-overruns in developing the mine. Earlier this year
it raised a further $90 million, its fourth equity raising. The IPO prospectus had forecast the West Coast mine would
cost $174m to develop.
Pike shares fell 1% to 96 cents, compared with the 88 cents issue price for its latest capital raising.
(BusinessDesk)