The company has overcome a series of setbacks over the past two years and expects more conservative development rates through the tricky geology of its namesake mine in New Zealand.

 

Production was forecast to hit 700,000-800,000 tonnes for the year to June 2011 but is now expected to be 620,000t.

 

Hydro-mining is still expected to start between July and September with the underground mine forecast to hit a rate of 1 million tonnes per annum in the first half of 2011.

 

Development work during the March quarter focused on access roadways into the first panels west of a large stone graben zone and on excavation work for hydro-mining infrastructure in the southern pit bottom.

 

The second roadway through the graben is 38m from re-entering the coal seam while another 163m of stone drivage needs to be completed to install hydro-mining infrastructure.

 

Two mobile coal receiver/crushers, known as guzzlers, are being tested on the surface before deployment underground.

 

Six in-seam holes were drilled through graben into the coal seam during the quarter.

 

They all confirmed at least 300m of coal and intersected at least 9m of premium hard coking coal in the Brunner seam.

 

Also in the period, Pike successfully underwrote its $50 million equity-raising package which is expected to provide an $18 million cash buffer for the company.

 

The first 22,000t shipment of coking coal extracted by its continuous miners had a sale value of more than $NZ3 million ($A2.33 million).

 

The shipment left in February and arrived in India four weeks later, providing the company with its first cash flow from mining operations.

 

Major stakeholder Gujarat NRE Minerals received the shipment and is a life-of-mine customer.

 

Pike had $A1.04 million cash at the end of March.

 

Shares in Pike closed up 0.57% at 87.5c at close of trade Friday.