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Piek River loss widens ahead of hydro-mining start

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.


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