A Macquarie Equities report last week valued recent CBM listing, CH4 Ltd, at between 53 cents and 73c per share, despite the company being floated by other arms of the Macquarie Bank this month at an issue price of $1.25.

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.