Hard-coking coal specialist Pike River Coal has announced further delays to production and export deliveries, but confirmed it is seeking up to $50 million in new equity.
Pike has seen repeated delays to its West Coast hard-coking coal venture during the past almost three years.
Pike's chief executive Gordon Ward said in a statement to the market yesterday the fully underwritten rights issue and placement would provide funding through the move to hydro-mining [water-blasting] operations, and also provide a "cash buffer of $18 million".
The equity raising is a $10 million share placement and an underwritten $40 million renounceable pro rata rights issue to shareholders and option-holders.
Craigs Investment Partners broker Peter McIntyre said the market had been expecting the capital raising since October.
It would be used to underpin its short-term working capital.
After two and a-half years and $280 million in development, including $50 million in cost overruns, there was a more than 20-month delay before the inaugural export in mid-February.
Pike yesterday extended its second shipment date, from between April-June, through to July, using more conservative estimates on rates of advance and the shift to hydro-mining.
Annual production rates, to the year ending June next year, were reviewed down from 700,000 tonnes-800,000 tonnes, to 620,000 tonnes.
"The mine is forecast to hit its average steady state rate of approximately 1 million tonnes per annum in the first half of 2011," Mr Ward said.
This rights issue is Pike's third, having already received and spent a total $105 million.
