worth chalking it down, page-2

Now that first sales has begun (admittedly small in the scheme of things), management I believe will be keen to get out there telling their story to brokers. I reckon with further announcements of growing sales volumes as further separator lines come on stream combined with broker presentations through the first half of June will see this stock push into double digits before too long.

Lets look at the risk in the stock:

- NSL is now a producer not too far away from being cash flow positive
- It will be tight but there shouldn't be any need for further equity capital
- The mining of the stuff is a simple truck and digger operation
- The plant is a straightforward magnetic/gravity process (no rocket science there)
- Whilst the silica levels are high by Australian standards, clearly there is appetite for the product
- There is a juicy margin in every tonne sold
- There is a clear growth strategy to 1.5m tonnes of saleable product by 2014
- Mgt have huge amounts of skin in the game and have been through a long learning curve on how to do business in India. Yes, there have been hiccups along the way, but that is the nature of the beast. Now to reap the rewards of that effort.

AND there is a massive coal option in the background that could in fact dwarf the value of the iron ore in the medium-long term.