Pike River Coal's board is considering "several alternatives" for recapitalisation, but refuses to comment on speculation of receivership being an option, or that it may need anywhere from $100 million to $200 million to survive.
After more than 10 years and $290 million spent in development funding, and just two small export shipments of specialist hard coking coal in recent months, a series of explosions starting on November 19 saw 29 men lost and production stopped.
Mine access has been impossible since the four blasts and it is "crucial" for Pike to get underground to determine the extent of damage, allowing it to make plans for restarting the mine, chairman John Dow said when contacted yesterday.
"We need to know the extent of damage underground, as all above-ground assets are intact," Mr Dow said.
Pike has gained a three-month extension to a $25 million loan from former parent and now majority (29.4%) shareholder, listed New Zealand Oil and Gas (NZOG), which was due to be paid next week.
With no cash flow and operating costs estimated at around $5 million per month, Pike will need a recapitalisation plan in place shortly.
A review is under way of the number of staff at Pike.
Mr Dow noted that in the tunnel, aside from the hydro-mining [water blasting] equipment and a drill rig, there was a variety of at least six heavy transport vehicles, collectively worth up to "tens of millions of dollars".
"Just where the blasts were, and [individual] extent of what was touched, just aren't known," he said.
The tunnel system also had in-built infrastructure, such as water and electrical systems, which had to be assessed for damage.
He declined to comment on receivership or the likely size of any cash injection required, saying it was "owed" first to tell the Pike staff and Greymouth community at large.
Craigs Investment Partners broker Peter McIntyre said Pike had some "breathing space", having gained a creditor's waiver for immediate debt repayment, and said it could be up to three months before a plan was announced.
He said Pike's board would be likely looking at recapitalisation by going back to all shareholders, or NZOG on its own, or NZOG and the two Indian coke buyers, who were also shareholders.
Mr Dow said just as equipment was yet to be assessed, access was needed before an insurance claim could be made.
