Word had to travel. Brokers have to learn more about it, it has to be written about on various media. I'm not concerned that today it didn't shoot up. Slow and steady is much better. I found one article on **************.com that confirmed what is being written here (dated 3 Feb 17):
More Upside in NSL Sale Prices Expected as Iron Ore Continues Upwards
It’s been some time since we last checked in on NSL Consolidated (ASX: NSL), a commercially savvy minerals miner, that’s travelling at speed towards production status later this year.
We’ve seen a spectrum of commodities stage resurgent rallies in recent months, backed by factors ranging from the trivial to the Trump.
When looking at NSL’s current positioning as the only foreign owned Indian ore miner, there’s room for cheer. NSL is on course to produce at least 200,000 tonnes per annum (TPA) later this year…
…and could reinforce this initial salvo with an additional 200,000 tonnes, as part of an expansion phase being actively deployed.
Part of that expansion has been the 250 acres of land for pellet plant and 750 acres of land for an integrated steel plant allotted to NSL by the Andhra Pradesh government through its joint venture with the company.
Based on current Indian mining and pellet industry norms for integrated plants, this indicates a possible AU$44-$52 per pellet tonne operating profit for a NSL owned pellet plant.
This figure is speculative at this stage and anyone considering NSL for their portfolio should seek professional financial advice before making an investment decision.
As well as representing the achievement of another material milestone for NSL in developing the project, it also highlights the importance of continued support from the government of Andhra Pradesh – which will talk more about shortly.
NSL has also been buoyed by process optimisation results at its Phase Two Wet Beneficiation Plant.
Utilising very low grade waste iron ore feed to test the process boundary limits NSL has been able to exceed expectations, with full plant process beneficiating low grade iron ore waste from as low as 14% Fe feed regularly to in excess of 62% Fe and up to 65.3% Fe.
The results of this testing mean there is potential upside to the expected plant production grades and as a result, sales prices.
These results could offer up further commercial opportunities for NSL both in profitability and breadth of customer base.
All in all, when the iron ore price looks like this – it’s going to make companies like NSL get onto an increasingly large share of investors’ radars.
NSL Price at posting:
4.1¢ Sentiment: Hold Disclosure: Held
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