Patersons comment on BNDJAMIE MYERSof PatersonsBANDANNA ENERGY...

Patersons comment on BND

JAMIE MYERS
of Patersons
BANDANNA ENERGY $0.565
BND has lost a lot of goodwill because
of the botched asset sale/
takeover in the middle of the year.
But the assets held have not
changed, the big port allocations
are still in place and BND is keeping
the projects on track.
BND has also lodged mining
lease applications for Dingo West,
Springsure Creek and the South
Galilee project. After a rights issue
raised $101 million, BND is estimated
to have $134 million in the
bank and to be in a position to take
all three through to the decision of
mine stage at least.
On in-situ metrics. BND looks
very cheap relative to peers.
If it can deliver on the leases and
bring Dingo West into production
by late 2012 or early 2013. it may
restore the lost goodwill.
We retain our BUY recommendation
with a revised price target of
$1.85 per share.