In the wake of the Pike River Coal tragedy still unfolding it might be worth taking a look at the listed company Pike River Coal Ltd [PRC.NZX] and what its share price is doing.
The company has had a very patchy time business wise and share price wise since it listed back in July 2007.
It has been developing the Pike River mine for many years and in that time has gone back to the market several times for more money and since coal production began earlier this year its projected coal output has dropped by more than half.
Its share price reached a high of around $2.50 back in 2008 and currently sits at 88c. It has dropped considerably over the last month or so on revised production figures from $1.20 down to the current price.
Mining is very risky for the shareholder.
The latest disaster will impact the PRC share-price when the NZX opens tomorrow as the market was not fully aware of its unfolding when it was reported at approximately 4.00pm Friday 19.
The shares, which are dual listed on the ASX lost over 14% on that market late Friday before a trading halt was put in place until Tuesday 23, 2010.
It is likely that the halt will extend to the NZX listed shares but when lifted clearly it will provide opportunities for investors to make their move.
This of course will be based on scant knowledge of how much damage the mine will have been subject to and when the company will be able to recommence production.
Lets hope the 29 boys now down the mine will be able to surface and get back to the coal face as soon as possible. We are all thinking about them and their families.
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