Pike River Coal this morning posted a $14.1 million interim loss, reflecting the mine's development phase, the company said.The company also released details of its capital raising plan.In the six months to December 31, the $14.1 million loss included a $
Pike River Coal this morning posted a $14.1 million interim loss, reflecting the mine’s development phase, the company said.
The company also released details of its capital raising plan.
In the six months to December 31, the $14.1 million loss included a $4.3 million unrealised exchange gain (relating to currency movements on the USD convertible bond), $3.8 million depreciation and amortisation charge and $2.6 million of interest expense.
The loss compared to a $9.55 million loss for the same period last year.
The total investment in mine assets at December 31 was $279.3 million. A $14.6 million investment was made in mine assets during the period.
A $5.9 million income tax benefit (30% tax value of the net loss adjusted for non-deductible items) on the income statement reflected tavable profits in the immediate future.
A total of $6.8 million post-production cost for pit-bottom roadway construction was moved from operating costs to production assets. The costs would be written off over the mine life on a units of production basis, the company said.
Chief executive Gordon Ward said in a statement the results reflected the mine’s development phase.
“Once hydro-mining is underway in the July-September 2010 quarter, the typical export shipment size of premium hard coking coal will be approximately 60,000 tonnes. Once full production rates from hydro-mining are achieved, the mine is expected to produce an average of approximately 1 million tonnes of premium hard coking coal a year.”
Pike River Coal's share price (NZX: PRC) was at .93 cents this morning.
