BHP Billiton Limited (BHPB) announced an agreement to sell its shuttered Ravensthorpe nickel mine to First Quantum Minerals Ltd (First Quantum) on 09 December 2009 for US$340 mn and expects to complete the sale by 1Q 10. However, we do not expect a significant change in our fundamental outlook. Hence, we believe that the stock is overvalued at current price levels and we therefore maintain our SELL rating. We will reassess our ADR rating (1 ADR = 2 Australian shares) after the company releases its 1H 10 results in February 2010. We now anticipate a positive currency impact on the Australian stock over the next 6-12 months. However, given our outlook for the company's fundamental stock and the Australian stock's current price levels, we maintain our SELL rating for Australian stock We will reassess our Australian stock rating for BHPB after the company releases its 1H 10 results in February 2010.

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