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Announcement on 8th of September, 2014 Produced 52% Fe from 28%...

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05/02/15

14:11

Post #: 14703787
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Originally posted by nask23 ↑

I have followed the chat on this stock for the past few months as I have been in and out of it a number of times over the past years...not always to my credit!

There have been numerous false starts together with failed JVs, multiple dilutions (except for management who have a propensity to issue option after option), incomplete gate sales (of which there seems to be another in making as I type) and a total disconnect with performance and management remuneration, however they are still holding on (even if its by a little finger) which is no mean feet.

I want to believe in the story and the presentations because they are in the right spot at the right time and assuming they can produce in the magnitude they quote and secure direct off takes to mills, away from dodgy 3 party traders, then they have half a chance with the additional funding now available. The big question for me, away from the sales agreements, is their production capacity which is yet to be proven. When they have run the dry plant before they have not managed anywhere near the production numbers required and to the best of my knowledge (please correct if I am wrong) grades where not disclosed, hence the need for a "professional JV partner" to rectify their production issues. Which we all know was a non starter. I also note that they make no mention again of tonnage throughput in their latest release.

In addition the Wet benefication plant production is theoretical so expect 12 months or more of production issues with this if it ever gets commissioned.

So in summary I want this to succeed as I am a holder but until there are offtakes in place that hit the bank acct and more importantly production number to service these offtakes then this is still a 50:50 in my book. I also ultimately expect them to venture down the JV route again to sure up production which will no doubt come at a significant dilution cost to existing holders. A better scenerio would be a takeover by a proven mining house post AP14 approval, but thats just my pipe dream.

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Announcement on 8th of September, 2014

Produced 52% Fe from 28% ROM before cyclone hit.

Whether that including using 3rd party material is unknown.

You paint an interesting picture of NSL, one that would put a lot of doubt into the minds of new holders.

Something like throughput is just one aspect you'll have to take the companies word on. They believe they can produce 7000t per month of 50-55% Fe material during Phase 1, then we just have to believe they can.

Time will tell.

Thanks for sharing your experience with NSL.

NSL Price at posting: 0.8¢ Sentiment: Buy Disclosure: Held
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