PRC Pike River Coal

[minimoke]

I was just thinking if there is only now $40m in debt that some how Soil Energy take over Pike River and keep it as a listed company on the stock market. they would need to pay out NZOG but private share holders could be offered the optio to remain share holders. In longer term it may give solid a way of listing on the market or the pike shares could convert to Solid energy shares if or when the govt. partially lists them.

So you are assuming SE will pay $40m to cover the debts.
Plus $?m for ongoing receivership and mine costs as well as any money going into the Inquiry.
Plus $?m for costs associated with body recovery which may take a few years.
Plus $?m for a OSH prosecution and reparations judges order.

Bear in mind the new owner may need substantial cash to redevelop the mine. There has been talk the bodies may not be recovered suggesting the existing mine might be by-passed with new underground and the unlikely open cast development.

And if the new owner isn't solid energy they may not even have a rail head.

And current shareholders may be offered an opportunity to remain shareholders? The only reason existing shareholders will be given such as opportunity is so the new owners can tap a source for the necessary capital raising.

[Monkey Poms]

Today we find out!. PRC will receive approx $80m in full and final settlement from their insurers.
Unsecured Creditors will receive from this sum $10,000 or less if their claim is less. This is worth about $10.1m

BNZ get the lions share at $23.2m for full settlement

$6.3m goes to the mining equipment leases.

NZOG, as secured creditor gets $38.3m
NZOG as unsecured creditor gets $3.00

That leaves somewhere around $40m in debt left to cover.

Hi Minimoke.

"Following the mine explosion on 19 November last year, NZOG loaned PRCL
$12m. After the Receivers were appointed it was this funding that allowed the
receivers to carry out their duties - to support the mine stabilisation
efforts, pay employees their statutory entitlements, co-operate with the
various inquiries, begin a sales process and pursue the insurance claims."
________________________________________

I remember the NZO management took a lot of stick from shareholders for giving Pike this loan.
On this occasion they had the good foresight to help protect the interest of NZO's shareholders.
Maybe that's why they pay them the big bucks?, ( Balance your comments please ).

Hope the next rare piece of good news for Piker's is that Solid Energy pay the receiver in full the true value
of all the coal they purchased from Pike, at the moment ( best guess ) Pike are owed a further $3,500,000,
This is now in the hands of the receivers lawyers.

Minimoke I have a theory as to why Solid Energy paid Pike short, at a time when Pikes financial situation was dire.

Solid energy congratulated themselves on a plus 20% rise in their profit margin, this compared to the near
100% rise in the price of coal during SE accounting period, this suggests SE may have forward sold a major
part of their forward coal production at roughly half the price as to the spot price of coal available at the time
of the explosion of the mine. ( as with the gamble of striking a price for the sale of future production of any
commodity ) sometimes you win sometimes you lose. SE could have lost big time.

If my guess is near to the mark, Pike should not be made to pay for the mistakes of Solid Energy, As to
Devious Don describing our coal as not being coking coal or even sub coking coal, there are, i am sure many
experts out there who will disagree with him if it comes to court of law.

I have a sample of the first coal extracted from the mine, taken when the tunnel finally hit the coal seam,
I will gladly send the sample down to the court for analysis as exhibit ( A ) should the need arise.

Come on Don, pay the bill to the receiver, the funds would be a good start to help pay the cost of bringing
home the bodies of the 29 men.

Monkey Poms.

[rabcat]

What I am saying is there are a couple of obvious problems with the original PRC mining operation. One of the issues was the management i.e. they didnt have the experience or expertise to undertake this operation. My understanding is that SE have these skills.
Secondly $40million is small change when you have a possible resource worth $4-5 Billion. Even given it may take another $100 -200m to get the mine up and running again.
Thirdly from what I have heard from the royal commission the issues with this mine are not that it is an underground mine but that the current operators where pretty slack with safety issues. That comes back to the seemingly weak management and lack of forward planning.
And yes the current shareholders would need to put up additional capital, but I would be unhappy to do that with the current managemt or board. Having SE involved would certainly resolve those concerns from my perpsective.

[George]

I am disappointed at the lack of concern for safety issues many years after new requirements came into being. I know of a teacher at a big high school in Auckland who had a large heavy TV fall off a high trolley hitting her head and knocking her out for half an hour, bruising her ribs and breaking her ankle in two places. She has just lost her limp after 6 months. The nasty part about it all is that management (principal etc) never rang her to see how she was, OSH never investigated, the health and safety officer or union rep never approached her (they obviously weren't told) and it is astonishing how such an event can be kept quiet as there were plenty of witnesses. But it was kept quiet. Heard that a TV may have fallen in the past but nothing was done ie. near miss form filled out and steps taken to rectify.
A couple of inches either way and it would have missed her or KILLED HER. She doesn't want to stir things up because they could make her job harder or phase her out in some way even tho she's a permanent employee.

[minimoke]

I am disappointed at the lack of concern for safety issues many years after new requirements came into being.

You have a point. NZ has just had three more industrial deaths in three days. 1 x drainlayer in a 3m trench collapse, 1 x truck driver crushed while unloading a generator, 1 x 2 year old run over by a tractor. That follows the truck driver who was killed last month when he drove into power lines Then there was the death of an electrical worker in June when his cherry picker fell over. The tragic irony is that his employer received a Supreme National Safety award a few hours earlier.

[George]

[QUOTE=minimoke;356758]You have a point. NZ has just had three more industrial deaths in three days. 1 x drainlayer in a 3m trench collapse,
This after two prior similar trench collapses resulting in deaths. What's going on - or not???

[brucey09]

Snrs.
Is this as you say ok
PRC 405000000 shares
debts $50000000
restart $100000000 at most
$0.37 per share for billions of coal
NZO and India ?

[Balance]

http://www.nzherald.co.nz/business/n...ectid=10751473

God bless NZ.

[minimoke]

http://www.nzherald.co.nz/business/n...ectid=10751473

God bless NZ.

Clearly they didn't see the clue in the name "Mines RECSUE Service". But Google is your friend - shame Nichols didn't google MRS 24 hours earlier

I guess the only comfort families can take is that "The NZ Mines Rescue Service believes the initial shockwave of the first Pike River explosion killed most of the 29 men underground immediately.The initial explosion occurred in the mine on November 19 last year.
Lawyer for the Mines Rescue Service, Garth Gallaway, made the claim during the inquiry into the disaster this morning"

[Crypto Crude]

had a beer with daniel rockhouse today, he smoked me at pool... But I beat up on his brother...

sorry dudes, no inside gos this time...

.^sc