Revenue royalty model a possibility NMT/SMS (Primobius) is unique in offering customers a solution for lowest cost raw materials, and very high guaranteed recovery rates in exchange for a royalty. Competitor offerings imply selling the raw materials back to the customer, which means that the customer shares less of the economics of recycling. So, upon commercialisation (ie now), the expectation is that there may be a fast customer take up of the Primobius plants because of the better economics for customers. Speculative Buy recommendation There have been clear learnings from the demo plant & MB into the commercial plants. This should help customer confidence in delivery and should help with the plant rollout. The timing of the rollout and capital requirements for NMT are uncertain and that’s the biggest detraction for the stock at the moment. The release today suggests fid in early CY24. Key risks are execution and commodity prices.
Price Target 0.95
Fomo 3.2.1 boom
Ann: Mercedes - Benz Battery Recycling Plant Purchase Order, page-82
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