Pike River Coal Limited (NZE:PRC) Announce Half Yearly Accounts

Auckland, Feb 24, 2010 AEST (ABN Newswire) - Pike River Coal Limited (NZE:PRC) (PINK:PKRRF) has reported a $14.1 million loss for the six month period ended 31 December 2009. Included is a $4.3m unrealised exchange gain relating to currency movements on the USD denominated convertible bond, $3.8m depreciation and amortisation charge and $2.6m of interest expense.

The income tax benefit of $5.9m is comprised of 30% tax value of the net loss adjusted for non deductible items. This benefit is recognised in the income statement as the company will generate taxable profits in the immediate future.

In accordance with the company's accounting policy, a total of $6.8m post production costs for pit-bottom roadway construction have been reclassified from operating costs to production assets for the financial reporting period. These costs will be written off over the mine life on a units of production basis.

A further $14.6m cash was invested in mine assets in the financial reporting period. The total investment in mine assets at balance date was $279.3m, this is net of depreciation and amortisation expense of $6.2m.

The results for this period reflect the fact that the mine was in development phase. Once hydro-mining is underway in the July-September 2010 quarter, the typical export shipment size of premium hard coking coal will be approximately 60,000 tonnes. Once full production rates from hydro-mining are achieved, the mine is expected to produce an average of approximately 1 million tonnes of premium hard coking coal a year.

Accompanying this announcement are the company's interim financial statements for the period ended 31 December 2009 that have been prepared in accordance with New Zealand generally accepted accounting practice (NZ GAAP). The financial statements give a true and fair view of the matters to which they relate and our auditors (KPMG) have reviewed the financial statements and their review report is attached to the financial statements.

For the complete Pike River Coal Half Yearly Accounts, please click the link below:

http://www.abnnewswire.net/media/en/docs/62345-ASX-PRC-332711.pdf

Contact

Gordon Ward Chief Executive and Managing Director TEL: +64-4-494-0190 Peter Whittall General Manager, Mines TEL: +64-3-769-8400