An article out today indicates a positive outlook by Pike and it seems that it is hopeful of gaining an extension to its Liberty Harbour condition
............................................................................. Pike River confident on gaining extension
NZPA | Monday, 23 Nov 2009
Sponsored Links
Pike River Coal expects to gain an extension to the production condition on its US$27.5 million (NZ$38.4m) Liberty Harbor convertible bonds.
Pike River has asked Liberty Harbor to extend a production condition on the bond to June 30, 2010 from November 30. The condition is that the mine be capable of producing 800,000 tonnes in the 12 months from the condition date.
Problems encountered in the ramp-up at Pike River's mine, near Greymouth, delayed export shipments and meant the company needed additional funding.
Managing director Gordon Ward told the company's annual meeting at the mine today that a technical review of key mining issues was completed last week by a technical adviser to Liberty Harbor. No major concerns with the mine operation were identified.
Based on the response from Liberty Harbor so far, Pike River believed the condition would be extended, although commercial terms were still to be addressed, Mr Ward said.
Liberty Harbor is part of a Goldman Sachs asset management group.
Mr Ward said Pike River was also carefully weighing up alternatives, including debt and equity, for a further $20m in working capital. Those funds were not needed until February.
Despite the difficulties encountered in developing the mine, all the infrastructure was now in place for mining about 1m tonnes of coal a year, for at least the next 18 years, Mr Ward said.
More than 17,000 tonnes of coal had been stockpiled so far, and would be part of the inaugural export shipment of 20,000 to 30,000 tonnes of hard coking coal to be sent to Pike River's Indian customers, due in the January to March quarter of 2010.
Pike River shares were up 1c to $1.01 at mid-afternoon.
ENDS
PRC Price at posting:
78.5¢ Sentiment: Hold Disclosure: Held
HotCopper & The Market Online will be live From the Floor at the Mining News Select Conference and we want to bring the voice of our online audience to the show with us.
