Ann: Trading Halt , page-13

Hi SB,

The reasons I believe it's debt funding is :

trading halt!---indicates substantial deal

NSL is seeking off taker atm, so most likely funder is from one of these steel producers, who must already know the trial result.

Considering the upcoming cash flow, and cash on hand, iron ore stockpiled ready for sale. NSL is not short of cash.

Also considering board member hold 20 million shares, I believe its not NSL's intention to raise funds atm, just the buyer want more iron ore from NSL then lend money to NSL to help NSL accelerate production.


"who's going to pay for something which they haven't yet received..????"

1, offtake agreement always comes with "discount"
2, After signing the offtake agreement, NSL can only sell its product to this buyer, so the funding actually secured. NSL just pay off by delivering the products.

3, Considering the competition--multi purchase orders received, increasing domestic iron ore price, providing funding to secure ore supply at discount price is quite normal transaction in iron ore industry when supply becomes tight.

4,I believe a $3-5/t discount or hedged price could be an condition of the funding, but NSL must increase production to meet the buyer's actual needs. Say funder needs 800kt per year from NSL, and lend $4m to NSL in advance. $5/t discount means funder can get loan paid off after receiving first 60kt iron ore, then $4m benefit from total 800kt delivered, plus interest income, so why not?

Anyway, this is only my personal understanding @ my logics, just sharing with us. The upcoming ann will make things clear.

Good luck or bad luck, I missed 43 last night, only got 5 and half. what further disappointed me is 43 just lying as last number on next line!

Wish more good luck for NSL SHs, 3-4 years patience deserve significat rewards! 20c is still a dream today, but with a revised production plan, accelerating production, rare find company among Aus India China I firmly believe NSL will have a blue sky future.

I missed AGO at 40c, when it produced 2mt iron ore, I wouldnot miss NSL again at 5c when it produces 0.2Mt.