Don’t believe we have been lied to and to prove it would be near...

Don’t believe we have been lied to and to prove it would be near impossible. So many factors that could be pointed to account for delays and lack of action. I also believe many of the delays are due to real world delays partly from doing business in India and also stuff happens like a pump failure during commissions of phase two that management may not have planned for, and the rain was just nature being difficult. The biggest issue is that management do not seem to understand that timely information both good and bad is required to maintain confidence. Take the delay in phase two sales. This is a two fold issue. Firstly we get no information on actual production. Secondly we hear that they deliberately delayed delivery to better position themselves in negotiations for new orders well after the fact and no warning that deliveries/cash will be effected for the month. What we all want is a straight forward Ann explaining what current production is and is the plant maintaining grades. Is product being stockpiled, have they decided to only run an on demand operation to save cash etc. I don’t care what approach they may have taken it would simply be nice to know, eg. the plant can run at full capacity but we have chosen not to at this point, or plant is running flat out and the stock pile now stands at XYZ tons. Secondly just tell us orders are not being filled due to positive negotiations for larger order size and will impact sales. The market will react to known outcomes far better than surprises particularly negative ones.

Take the failed pump for phase two commissioning, why not just say we have a pump failure, a delay is expected of 4weeks. We can then argue where was the site spare but that’s a different conversation.

It is now up to management to prove they can communicate better. What is phase 2 doing? How can the market have confidence that ordering phase 3 is not just adding another under-utilised plant and a waist of money and time. Secondly good communication moving forwards over the next 6 months regarding Sales over and above the quarterly statements. Thirdly the order, construction, shipping and commissioning of phase 3 with current and regular updates on progress good or bad, delays included. Management seem to have got the ship in order with new hires for the phase 3 project which on paper is a good start.

Communication as to what and why is key. More talk, more proof of action and if delays occur, which they will, explain, and then NSL will get out of the self inflicted state it finds its self in.

My 2c rant over.