Not many investors like iron ore at present with the majors ramping up further and Vale re-opening all their pellet plants next year. The new Vale S11D mine recently opened is the worlds largest, the word is the C1 cost is US$10/tonne http://www.vale.com/EN/initiatives/innovation/s11d/Pages/default.aspx
Its not as thoughRIO, BHP, FMG aren't making money at present, they are but its the huge volumes at small profits per tonne that makes the huge profits.
You only need to look at other ASX listed iron ore miners outside the big 3, MGX is trading 6cents/share under its cash in the bank, GRR is trading on a smaller marketcap than NSL when you take into account the cash that GRR has in the bank and no debt. BCI and AGO are basket cases, and AGO is shipping 12 million tonnes pa. This is what NSL is competing with, Grange GRR for example produces 2.5 million tonnes pellets and are currently receiving US$125/tonne, with all product sold. Plus GRR normally pays a dividend. When you can buy a value company like MGX or GRR dirt cheap why would you buy a company like NSL.
True, NSL was a traders delight when it zoomed up last year and everybody made nice profits, I cannot complain when I tripled my money last year, but just don't get stuck at the top. Too many investors get sucked into the hype and can't see the elephant for the grass.
As everybody is seeing now, its difficult doing business in India. Frankly, at 2 cents NSL is well priced until investors see the $$$ rolling in, and if the money doesn't roll in next year, then its overpriced.
