Caledon Resources (AIM: CDN) pulled back 10% this morning after revising its production target for 2008 downwards to 0.9 to 1.1 million tonnes of coal.
The revision was necessary after newly commissioned underground mining equipment at its Cook coking coal mine in Queensland, Australian encountered "significant and unexpected problems". Despite the bedding down issues, Caledon confirmed that it was still pleased with the operational efficiencies the mechanised mining equipment was bringing to the operation.
Heavy rainfall in the Queensland area in recent months also impacted a drilling program on the Minyango Prospect, where Caledon is seeking to convert 40-60 million tonnes of a 240 million tonne resource into the measured category. 22 holes had been finished, but the remaining seven would take until early May to complete.
Caledon also confirmed that it was still working towards a secondary listing on the Australian Stock Exchange, and anticipated trading to begin in June.
Shares in Caledon have performed strongly in recent months, supported by surging export spot prices for thermal and coking coal destined for China, and speculation that Polo Resources, which has recently built up a position in Caledon, may be considering an approach.