"In summary:We had a much higher valuation for the CCP asset,...

"In summary:

We had a much higher valuation for the CCP asset, even adjusting for the fact that Xstrata only bought 75% of the total resource. We suggest that this is a function of there being no other buyer for the asset and an unwillingness of the EXS board to perhaps look to develop the project on a stand-alone basis. BUT the board of EXS have delivered 150% return to shareholders over a 10 month period. Clearly management has the skills to identify excellent project areas into tangible assets for shareholders. Assuming the company pays out the $100m or 29cps, on an adjusted basis this would see the share price fall to 35.5c, clearly cheap compared to our forecast asset valuation post distribution of between 53c and 56c (50% upside).

We have lowered our BUY recommendation to an Accumulate in-lieu of a few months of negotiations ahead of the company and an EGM at the start of June."