Gas woes unlikely to devalue delayed Burrup float: analyst
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An independent resource analyst says the gas explosion on Varanus Island should not devalue Burrup Holdings' delayed float.
Burrup's Pilbara ammonia plant, in north-west Western Australia, was forced to shut down indefinitely after the explosion cut its gas supply.
The company has since decided to delay its impending float, which was valued at up to $502 million.
Independent analyst Peter Strachan says it could be months before a new prospectus is issued, but says the delay should not affect the float's value.
"It's hard to see that there would be any long lasting devaluation of that business, unless people felt that going forward there was an additional risk associated with the plant related to the supply of gas," he said.
