Pike River Coal is having to look for more money to pay for the development of its West Coast coal mine.
The company said today that a combination of proactive steps it had taken to sustain the rate of underground mine development would require the company to seek a short-term working capital facility.
Pike River chairman John Dow said discussions with potential funders were at an advanced stage and the company expected to be able to advise an outcome by the end of September.
While progress installing hydro-mining equipment had been good in the current quarter, capital costs had been higher than budgeted and installation had taken longer than expected, Mr Dow said.
Pike River was also buying a second, previously unbudgeted, ABM20 continuous miner, after the introduction of the first ABM20 in August had proved an unqualified success in driving production roadways and in achieving improved development rates.
"The increases in costs, and the delay in the receipt of revenues from the second coal shipment last week, have impacted short term cash flow and led to the need for additional working capital," Mr Dow said.
The mine's hydro-mining equipment was now fully installed, with commissioning and first extraction planned to start this week.
Pike River would review the progress of roadway development and hydro extraction in coming weeks and incorporate the data into a review and updated forecast of annual production expectations.
Mr Dow said the company was now into a phase where future production rates could be forecast with more confidence.
Pike River shares were down 4c to $1.07 in late morning trade.
