PRC Pike River Coal

[shasta]

quote:Originally posted by Romer

Happy Camper
BWR confirmed on the NZO thread that there will be a minimum entitlement.
What do you reckon - - 1000? 5000???
[8)]

Romer - i would guess that the minimum would be perhaps 500 shares, being a marketable package, which would mean those holding above 4000 NZO heads.

I cant see the minimum being above 2000, though we will find out soon enough.

[shasta]

PIke update (some old news rehashed) from the Crown Minerals website..

Pike River Coal project's tunneling rate rises

27 March, 2007 The Pike River Coal Ltd's project access tunnel towards the Brunner coal seam is now making faster progress, parent company New Zealand Oil & Gas Ltd says in its half year report to December 31, 2006.
The Pike River project (MP 41453) on the West Coast of the South Island is making strong progress on a number of fronts, having faced and overcome some challenges during the period, NZOG says.

Construction activities at the mine site, situated 46 km north-east of Greymouth, are progressing well with tunnel development 450 m towards its 2300 metres end point at the Brunner coal seam.

Progress since 8 January 2007 of 275 m reflected improving rates of advance since the tunnel commenced in late September 2006. Initial projections of the rock type, made from surface mapping, have been revised and reforecast based on actual conditions encountered in the tunnel. Whilst there has been a need for increased roof support, this has been largely offset by faster than expected rates of advance in the poorer rock classes, NZOG says.

To date, approximately $55 million has been spent on construction activities at the mine and equipment purchases.

Major activities on site include 11.5 km of road from the public road end to the tunnel entrance, construction of seven bridges, clearance of 16 ha of land for installation of the mine's bathhouse, substation, coal preparation plant and stockpile areas and terracing of the amenities area located 1.2 km down the valley from the tunnel entrance.

NZOG says work has commenced on office and workshop buildings and installation of the 15 km of power supply infrastructure to the mine entrance was making good progress.

Contracts are in place for the purchase of two continuous miners and one roadheader which will develop the underground roadways in the coal seam as well as other mining and transport equipment required for the mine. The final shipment of slurry pipeline from Japan is due in March 2007 which will see all 10.5 km of pipe stored in Greymouth awaiting installation.

Pike River Coal received resource consent in December 2006 (in an interim decision) to use the cheaper and more direct southern route for coal transport from the mine to the Greymouth port.

The West Coast Coal Company Ltd, formed to transport Pike's coal from mine site to export port at Taranaki, has completed detailed ship design for the inter-port special purpose vessels, and plans to upgrade both the ports of Greymouth and Taranaki are moving ahead.

Dredging of Port Taranaki to 12.5 metres draft to allow Panamax-sized vessels of up to 65,000 tonnes to service the port is due to be completed in the June 2007 quarter.

The NZOG report says coal production will ramp up during the 2008 calendar year as underground roadways are developed and the mine's infrastructure installed, with calendar year ended December 2009 seeing the mine’s production at 1.1 million tonnes.

Benchmark hard coking coal prices for 2007 were settled by large Australian producer BMA at US$96 per tonne, which compares favourably to Pike River Coal’s earlier pricing expectations.

NZOG says two highly qualified independent directors have been appointed to the board of Pike River Coal. They are John Dow, who led gold miner Newmont Australia as managing director until his retirement in 2005, and is now a mining industry consultant based in Nelson. The other new director is Stuart Nattrass, a director of Fonterra Co-operative Group and a former banker.

A prospectus for the public offer of Pike River Coal securities was lodged with the Companies Office and the New Zealand and Australian Stock Exchanges for review in March 2007, ahead of formal registration. NZOG shareholders will receive entitlements to a significant proportion of the float at a ratio of 1 PRCL share for every 8 NZOG shares held at the relevant date.

Source: NZOG half year report.

[Mr Tommy]

Do we now have an indication of the value of PIKE from the latest announcement ?

From the recent NOG announcement:
Entitilement to Ordinary Shares in Pike River Coal Ltd
Ratio 1:8
Number or Securities to be issued: Up to 32727063
Amount per security: NZ$1.00

So this raises $32 million

Now this one ...
Immediately prior to the IPO, 54.2% of PRC's issued shares will be held by NZOG Services

NOG used to have 61%, so is the 7% the amount allocated to shareholders in the 1 for 8 ????

If so, this values the 7% at $32m, giving the total company a value of over $400 million.

[shasta]

Mr Tommy, that would value Pike River Coal Ltd at nearly twice the value of NZO, with no revenues etc!!!

NZO currently holds 34,502,960 of the 56,550,852 Pike River shares (or 61%).

We know 32,727,063 shares are entitlements for NZO shareholders (being 1/8th of the total NZO shares issued), should these not be taken up the two indian companies are effectively underwriting them, although we don't know if they have a cap on how many.

What we still don't know is the size of the public pool, & how much other Pike River shareholders (if any) are selling down.

I estimate the total Pike River shares to be issued (to both NZO holders & the public) to be around 60 million, assuming that...

... NZO would have approx 34m + 33m = 67m/122m =(54%)

With the 33m (Actual # = 32,727,063) for NZO holders (& underwritten by the Indian Companies)

With approx 27m shares available for the public pool...

I estimate NZO to sell down maybe 10 - 20m shares, & retain something above 10% in Pike River.

Had we been given the prospectus we would already know the above!

[lambton]

quote:Originally posted by shasta

Mr Tommy, that would value Pike River Coal Ltd at nearly twice the value of NZO, with no revenues etc!!!

NZO currently holds 34,502,960 of the 56,550,852 Pike River shares (or 61%).

We know 32,727,063 shares are entitlements for NZO shareholders (being 1/8th of the total NZO shares issued), should these not be taken up the two indian companies are effectively underwriting them, although we don't know if they have a cap on how many.

What we still don't know is the size of the public pool, & how much other Pike River shareholders (if any) are selling down.

I estimate the total Pike River shares to be issued (to both NZO holders & the public) to be around 60 million, assuming that...

... NZO would have approx 34m + 33m = 67m/122m =(54%)

With the 33m (Actual # = 32,727,063) for NZO holders (& underwritten by the Indian Companies)

With approx 27m shares available for the public pool...

I estimate NZO to sell down maybe 10 - 20m shares, & retain something above 10% in Pike River.

Had we been given the prospectus we would already know the above!

That is so true. Where is the prospectus??????
Too much pre information floating around for my liking.

[JoeKing]

Q.
Soooo what kinda sound does a mushroom make?????
A.Simple... just read last 300 pages on this thread HA HA HA!!!

[shasta]

Lambton

I have never come across an "investment opportunity" (& i use that term loosely!), like this where NZO is wanting to spin off an asset, & has taken over the running of it, & expects it's own shareholders to support it, based on no financial information!

By not issuing the prospectus/investment statement earlier, they are doing both NZO & PRC shareholders a disservice & potentially derailing an IPO that was meant to add value to both companies.

This process has been badly handled, from the start when the PRC Independent Directors resigned, & leaves me starting to question my "investment" in NZO.

Disc: Frustrated NZO holder!

[Noodle]

Last 300 pages of this thread?...hahaha...
Im sure youre thinking of the NZO thread!
But yes I agree...we are mushrooms...kept in the dark and fed bull****!

quote:Originally posted by JoeKing

Q.
Soooo what kinda sound does a mushroom make?????
A.Simple... just read last 300 pages on this thread HA HA HA!!!

[Snow Leopard]

I posted this elsewhere, elsewhen

quote:
To quote from the NZOG announcement of 21st Sept 2005:
"Planning is in progress for an Initial Public Offering ("IPO") by PRCC by March 2006, and possibly earlier."

Given that it is June 2006 in my timezone we may (or may not) have a long wait on our hands.

It appears to be April 2007 at the moment, is my calendar running a little fast.

[BigBob]

Pike River Coal's market listing edges closer

http://www.stuff.co.nz/4015342a13.html

The registration of a prospectus for the issue of shares in Pike River Coal company will almost certainly be completed in the next month, New Zealand Oil and Gas says.

The listing of the second biggest coalmine has been a long time coming and has been postponed four times in the past year.

NZOG is organising the listing of its 61 per cent subsidiary, PRC. The exact size of the share offering has not been disclosed.

NZOG has not stated whether there will be a public pool of shares as well as the issue of up to $32.72 million $1 shares reserved for NZOG shareholders.

Asked if the prospectus would be out in another month, PRC company secretary Brian Roulston said yesterday: "I'd have to say almost certainly."

NZOG issued a notice to the NZX this week clarifying that the qualifying date for NZOG shareholders to buy shares in PRC was not April 2, as previously notified, but a later date to be set once the PRC prospectus was registered. The change was required by ASX listing rules.

PRC will list on both the NZX and ASX.

With the adjustment of shareholdings before the PRC share issue based on the $1 price for PRC shares, NZOG's holding will fall to 54.2 per cent.

Last week NZX ruled that PRC would be a listed entity and the actions of PRC would not be construed as the actions of NZOG.

ENDS

What exactly does the bit about the "adjustment of shareholdings before the PRC share issue" mean...??