Following last week’s explosion at Pike River Coal Ltd’s
(ASX:PRC) mine in New Zealand, trapping 29 miners, sources have told The Australian the company may not trade again.
Dual-listed in both Australia and New Zealand, Pike River Coal put its shares into a trading halt after the explosion, advising that the company is not able to determine the exact nature of the event or the implications to its property or business, as the mine site remains under search and rescue control.
Freeing the miners from the mine faced a new setback on Tuesday when a robot sent into the mine broke down, increasing fears over the miners' survival.
The Australian reports industry sources have speculated Pike River will struggle to survive, as the mine is its only asset and without production from the operation as investigations are carried out, it is likely the company will suffer from a lack of cashflow.
The latest turn of events follows Pike River halving its production forecasts for the year ahead, after a history of delays and cost overruns.
Pike River Coal extended its loss to $31.71 million in the year to 30 June.
