I’ve been a holder for a couple of years, and definitely in NSL...

I’ve been a holder for a couple of years, and definitely in NSL for the long haul. I have a few thoughts about NSL’s transition to iron ore producer and seller.
Based on company announcements,
- I’m very pleased that NSL can now produce beneficated product in saleable quantities.
- The iron percentage produced using our run of mine ore is still open to confirmation in my opinion. I hope NSL will clarify this.
- The planning process for potential expansion on a range of fronts including benefication, pellet plant, steel mill and financing seems well in train.
My main concern now is ongoing sales. Don’t get me wrong. I’m delighted that NSL has achieved repeat sales with Infinity Ores. But Infinity is apparently not an end user and thus must be onselling the NSL product to third parties. In recent announcements I’ve read that “The negotiated sales price for the initial PO is A$67 (equivalent)….” It’s not clear to me what the term “equivalent” means in this context, but regardless, it concerns me that
- Infinity are able to find purchasers for our ore (clearly at a profit), and
-NSL are not selling directly to one of these end users, and therefore not maximising the revenue from our benificated product.
I’ve travelled fairly widely in India and have some appreciation of the entrenched issues. Obviously long standing relationships exist between Indian steel mills and domestic iron ore producers. NSL need to break this nexus.
Earlier this year, I was very pleased to read that NSL had hired an experienced ex BMM employee with considerable expertise in benefication plant operation and management.
I would be equally impressed if in the near future I read that NSL have hired a local with expertise in iron ore marketing and sales.
Just one man's opinion. All the best. Herro