Bendigo Mining has been left vulnerable to a takeover by a share price collapse yesterday after it was forced to stop mining and return to exploration, a move that turned back the clock two years.

Based on the value of its above-ground assets and cash on hand, analysts had expected Bendigo to fall to between 35¢ and 40¢ a share from 73¢ when it resumed trading yesterday. But negative sentiment towards the goldminer, which raised $50 million at 80¢ in November, led to a slump as low as 29¢ when trade opened yesterday.