research

Hey all, decided to do a bit of research on nsl and its potential given the current information we have got.
I did a few similar research-potential posts, but decided to view it from a different perspective.
My last research for a while so good luck.

First of all, very good to hear sophisticated investors being part of nsl, and at only a small discount to current share price, it is a sign of confidence within the company.

Ironawe i did research on tty as you posted it to compare in some way with nsl. I went into their past ann, and it looks very interesting.

Following share price increases from tty and why?

ANN: 28th sep 07 - first shipment 65,000t share price jumped from 89c to $1.30.

25th oct - 10 million tonne inferred / indicated iron ore at 60% fe. share price jumped from 1.16 - 1.73 over 3 week period. To me suggests investors coming in for a long term hold.

tty have 265m shares outstanding

First ann: market cap is 265m x .89 = 235M market cap
after ann or spike to : 265m x 1.30 = 345M market cap

second ann: market cap is 265 x 1.16 = 307m market cap
After ann 265 x 1.73 = 458m market cap

these were the prices recorded during a financial meltdown, a period of time where the general market had lost confidence. Iron ore began to loose significant value. yet tty for 6 months kept its share price with a market cap growing to 450M approx.

The production target from tty is bigger than nsl IF nsl are going by 3 million tonnes iron ore produced in 3 yrs or per yr. That should be clarified by directors as it is unclear to me at this point.
But lets say its 3 million total in 3 yrs. that is a average of 1mpta per yr.

at a time where tty were ann iron ore production of 1.5mpta its market cap was 250-300m approx.

Nsl's needs to come out with a jorc for its resource, this is what is going to boost the share price, as well as shipping of iron ore and gaining new contracts.

Jorc classification is due by end of first qtr, similar goals in comparison with tty (10m ), also grade is similar of 58-60 FE.

Nsl market cap 40M, tty at the time of financial crisis and uncertainty 200M.
although tty may of had slightly better outlook and a proven resource by the books, something nsl will come out with and show the market.. the market caps of both companies a moons apart.

IMO, nsl will be re rated slightly after first shipment, then major re ratings after proven resource by meeting jorc classification. Of course you got increase contract agreements that boost share price as well.

Lastly, we are in a very good position generally given market confidence coming back generally, compared to 2 yrs ago, also iron ore prices look to be very favorable for the miners for a long time yet.

Nsl are on a very good footing and cheap share price once few things come along in the very near term

good luck to all.