Event
NMT announced successful smelter trials for is Barrambie product;
Impact
We view Barrambie as non-core; However, it has the potential to carry meaningful value for shareholders; We expect financing via a BOOT (ie minimal capital requirement from NMT) and probably an eventual divestment; Our speculative valuation for Barrambie is A$90m (15cps) on our base estimates (US$168/t selling prices) but increases to A$1b (>$1.50/sh) based on spot prices (we estimate around US$260/t); Selling price assumptions are speculative at this point (given the product mix uncertainty), but we expect clarification in the PFS and will tighten our valuation assumption for Barrambie then;
