Responsibility
Responsibility to Shareholders
Pike River, as a good corporate citizen, sets high standards in achieving its commercial, social and environmental responsibilities and has won recognition from shareholders.
Shareholders have particularly welcomed the high level of company communication.
Evidence of this recognition came in April 2009 when 1,100 shareholders - nearly 20% of all New Zealand shareholders - were keen enough to turn out to nine shareholder meetings around the country to learn about mine progress.
The launch of a $41 million rights issue in March-April 2009 was over-subscribed.
Since the company's incorporation in 2007 it has put considerable emphasis on achieving its economic goals while still safeguarding the environment it operates in.
Commercial Responsibility
While commercially Pike River is still a young company, its reporting requirements have been fully met and it receives widespread coverage from sharebrokers with five providing research on the company.
Pike River has a favourable dividend policy. Pike River anticipates a dividend of 50% of free cash flow after due consideration of the capital requirements, operating performance, financial position and cash flow expectations.
The policy is expected to be applied towards the end of 2011 when the mine is well into full production.
Dividends, when paid (if any), are expected to be paid six-monthly and are generally expected to have attached to them any available imputation credits with Pike River intending to pay offshore shareholders a supplementary dividend under the New Zealand foreign investors tax credit regime.