from UBS. Keeps neutral but sees potential...and I change my view to long term buy. Aligned to interesting to exciting drilling results we should see a reanimation of the SP.
Impact: Outlook improves for a revised Kitumba study.They believe that it is an opportunity for this deposit as it ranks as one of the highest grade undeveloped copper deposits held by an Australian junior and see also improved economics.
Kitumba develpment is seen as key driver. Change of some parameters(grade, recovery & capex) could have a potentially significant positive impact on the project economics.
PFS: Depending on different changes in parameters they see possibly improving the NPV from the originary 5.5% IRR and $25m NPV. The increase in grade in their simple model by the 16% uplift seen in the resource, the IRR would lift to 9.5% and the NPV would jump to $170m. Further optimizations as e.g. recoveries of 80 % instead of 76 % or lowering of set up cost from 358m by 10 % would result in a IRR would lift over 12% with an NPV of circa $250m. At current spot prices, this would be a 15% IRR.
BTR Price at posting:
24.0¢ Sentiment: LT Buy Disclosure: Held
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