This article is 20 years old. Images might not display.
Issued at A$1.00 the shares opened at $1.24 on Monday, closing at $1.15. Turnover was 3.34 million shares worth $3.93 million.
The company's IPO, which closed three days early oversubscribed on November 19, raised $53.8 million from the sale of 53.8 million shares at $1.00 each.
Most of the proceeds from the offer will be used to retire debt and purchase key infrastructure. The balance of the funds will be used to expand production at the company's Newpac underground coal mine in the Hunter Valley, New South Wales.
Resource Pacific has plans to add a longwall operation alongside the mine, a move that is expected to increase production to four million tonnes by 2008 and five million tonnes by 2009.
The mine currently has a production rate of 50,000 tonnes per month.
Managing director, Paul Jury said he expected existing strong market conditions to last for a while.
