Ann: NSL secures $10 million to expand production of wet plant, page-264

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oxxa23

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24/05/18

21:20

Post #: 33298715
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Originally posted by Rhama ↑

The only reason they'd hold them, I believe, is if they know something we don't - yet. Last time Magna dumped their shares was at the cusp of the phase 2 start up and all the good news surrounding that - at the beginning of our rise to 5 cents. Seems that news wasn't enough to fire their interest to hold though.

If Magna do dump their shares it will be at the same time we get consolidated, should consolidation be voted in. Judging by First Samuel's recent announcements, along with management's keenness to do it too, I'd say consolidation is a certainty. Think you're right Moppo, this has the potential to get ugly after consolidation.

We have a saving grace though - neither of these 2 things will happen until after the next meeting. I really hope there's significant news before that meeting.

Reading NSL's updating website, one thing really sticks out to me. We have 4 mining tenements, assuming TS1 will be approved. Of the 3 mines in the Kuja region, only 500,000 tonnes is licensed to be taken from Mangal per annum, 331,000 from Kuja. The annual mining rate from AP 23 is unspecified. If we assume the annual mining rate at AP23 is similar to the others that means NSL is only licensed to mine around 1.2 tonnes of ore a year. Considering it takes somewhere between 2-3 tonnes of ore to produce 1 tonne of product, then currently NSL would only have enough of their own supply to keep phase 2 and 3 going, perhaps even one more. If NSL are to expand further, then they will either have to buy ore in or get some more mining tenements. Progress on mining acquisitions would spark my interest. It would show they really do mean business, or that the AP government are truly behind NSL by granting them.

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Everyone is confusing magna for resources first. Magna debt was paid back. It was resources first that converted the convertible note for shares at 31.12.16, then sold a hell of a lot down.. except for approx 30m from memory.

NSL Price at posting: 1.4¢ Sentiment: Buy Disclosure: Held
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