Following the quarterly index review to June, Pike River, which produces hard coking coal, will replace Hellaby Holdings on the SE50 Index, ranking around 43rd by market capitalisation, effective from the opening of trading on July 1.
Following the lifting of a late-afternoon trading halt yesterday, Pike shares spiked 3.63% to broach $2 per share for the first time, while Hellaby shares slipped 4.24% or 7c, down to $1.58.
After 21 months tunnelling more than 2km into the Paparoa Ranges 45km northeast of Greymouth on the West Coast, Pike River is within striking distance of hitting the target Brunner seam - a potential 17.6 million-tonne load of specialist coal used in new steel-making.
Pike this week confirmed contracts of $US300 per tonne for the first few deliveries to Japanese and Indian clients next year and is confident new forward contracts will be struck for $US270-$US300, prices based on analysts' forecasts.
ABN Amro Craigs broker Peter McIntyre said the Pike River share price gain of more than 12% earlier this week, on expectations of coal sales at record prices, had propelled the market capitalisation into the SE50 range.
Chief executive Gordon Ward said he was pleased Pike River had entered the NZX SE50 less than a year after the initial public offering, and just prior to the first coal production expected from the underground mine.
