The stock was sold down to $1.03 on Friday when the report – "Bringing methane to market" – based the low valued pricing spread on a 'range of potential outcomes'.
The bank was quick to say this was a base case valuation and not the sum total of the report, which rated the stock a short and long term 'market outperform'. The report said CH4 management can add further value through the contracting of additional loads in the Townsville market.
The report is "not putting a valuation on the company but valuing the locked in income as a base. That is the base case," a Macquarie Bank spokesman was quoted as saying.
Macquarie Bank subsidiaries held around 80% of CH4 prior to the float but now hold around 50%, held through subsidiaries, Bond St Investments and Macquarie Investment Trust III.
