Nightcaps to reopen

Press, 20 March 1982, Page 19

Nightcaps to reopen

Coal and Energy New Zealand. Ltd. intends to re-open the Nightcaps mine in. Southland as an open-cast coal mine in June, said the chairman (Mr A. J. Wakefield) in the company's maiden annual report. A property adjacent to the Nightcaps mine was bought in December and the acquisition would substantially increase the reserves of recoverable coal able to be produced from the mine, he said.

Bringing the Nightcaps mine into production was one of the objectives of the new company. Others were to develop the operating mines at Ohura and Seddonville, market coal as an alternative energy source for consumers, and to investigate and develop export markets. A public issue of 10 million 25c shares was made in October and it was successfully filled though Either public issues in the latter part of 1981 encountered difficulties, Mr Wakefield said.

A pleasing feature of the

public share issue was the strong support given to it by financial institutions, a number of which had since increased their holdings on the open market. The net profit was $1254 in the period from August 20 to December 31 before formation and share issue costs were written off of $226,536, leaving a deficit of $225,282. The financial period covered included trading by the Charming Creek mine from October 1 and one month from the Richardson mine and was not indicative of a full year’s activity, Mr Wakefield’said.

Surplus funds had been invested at fixed-term interest rates and would be a significant contributor to the current year's profits. The particular emphasis on marketing of mine production would continue in 1982 with the development of the company's mines.' The “old dip’: area at Charming Creek had been successfully de-watered in the last two months, resulting in increasing extractable reserves by at least 100,000 tonnes to more than 400.000 tonnes.

The. attention paid to marketing in the last three months has had some success

in expanding the company's traditional coal markets. The directors were confident that Coal and Energy had had the resources and the management to provide a sound foundation for an organisation with the ability to “strategically position itself to take a full part in the future growth and development of the New Zealand coal mining industry.” Shareholders’ funds total $3,774,718 (after a deficit carried forward of $225,282), including ordinary capital at S4M. Current assets total $1,828,938. and current liabilities $171,208, leaving net current assets at $1,657,730. In accordance with the dividend policy explained in the company’s prospectus for the issue, no dividend has been proposed. Group revenue amounted to $139,441, $91,755 from sales and $47,686 from interest. The depreciation provision was $18,420 and losses for taxation purposes of $96,897 were carried forward.

Bridgevale Mining, Ltd, holds 20 per cent of Coal and Energy’s capital, followed by Cooks Holdings (N.Z.), Ltd. on 11.2 per cent. Mr C. J. Brazier (a director) with 7.5 per cent, and the AMP Society with 5 per cent.