COAL COMPANY DIVERSIFIES TO FUND PROJECTS

COAL COMPANY DIVERSIFIES TO FUND PROJECTS

COAL explorer Bandanna Energy Limited (BND) will seek to sell interests in some of its core assets to potential partners in a bid to meet funding requirements for projects in the Bowen Basin.

The move comes after a successful $76 million capital raising in December and a further strategic review to attain funds in addition to current cash reserves.

Bandanna’s share price has nearly doubled since September last year when it released its annual report for FY10, with more than 1 billion tonnes of JORC (Joint Ore Reserves Committee) compliant coal resources it aims to commercialise.

In the quarter ending December 31 2010 the business recorded $2.38 million in negative net operating cash flows, with estimated cash flows for the current quarter of $6.1 million.

The company has appointed UBS for assistance with the sale while Freehills will provide legal advice.

BND shares rose 1.4 per cent this morning to $1.46 per share.

Record rainfall in the Bowen Basin has severely hampered output for miners in the region with Macarthur Coal recording a 20 per cent fall in coal sales.

Find out more about these two mining giants in our special Top 50 Public Companies edition in March.

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

A game changer? Aspiring to the new standard on workplace mental health
Partner Content
Work health and safety regulators have been more active in the area of mental health ri...
Aon
Advertisement

Related Stories

WA suspends planned quarantine-free travel bubble with Queensland

WA suspends planned quarantine-free travel bubble with Queensland

The proposed quarantine-free travel bubble between Queensland and W...

Start-ups ready for orbit aboard Space Machines Company’s first mission

Start-ups ready for orbit aboard Space Machines Company’s first mission

The start-up world is clamouring for its place in orbit with Austra...

"Wake-up call" for the Gold Coast as rideshare driver tests positive to COVID-19

"Wake-up call" for the Gold Coast as rideshare driver tests positive to COVID-19

An unvaccinated Gold Coast-based rideshare driver in his 30s is rep...

Retailers set for pre-Christmas spree as hospitality takes a bigger bite

Retailers set for pre-Christmas spree as hospitality takes a bigger bite

Australian retailers are heading for another big spending spree ove...