Lost iPhone , could that phone be used by a new sim , even if the lost mode is activated on Find my iphone

Lost my iphone4S few days ago , even I have filed a police report with the IMEI code , Later on i signed into icloud ,Find my iPhone shows that it is offline, and all the requested action,lost mode was pending , after some time the phone was switched on for few minutes the phone location got located & even the lost mode got activated but after that i never got any updates from that phone, still my iphone shows it is offline ..so is that possible if somone has restored & a new SIM is installed and activated in my iphone even if the lost mode is activated , if so how could i trace it