Next Investors logo grey

NSL’s phase one upgrade

Published 24-NOV-2015 11:25 A.M.

|

2 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.


Click Here to View Latest Articles

NSL Consolidated (ASX:NSL) could be $265,000 richer after pulling off another purchase order from its iron ore project in India from a repeat customer, a deal which essentially upgrades the value of its project.

It told its shareholders before the start of trade today that repeat customer and industrial giant BMM Ispat had ordered another 5000 tonnes of iron ore at 55% grade for a total of 2500 rupees ($A53) per tonne.

It had previously modelled ore value from the plant at $43/tonne.

NSL had also previously forecast cash flow from the first phase plant to be $4.3 million.

However, the deal comes in at $265,000 and effectively values the entire 200,000 tonnes offtake agreement previously penned with BMM Ispat at $10.6 million should the current rate be applied to the entire 200,000 tonnes.

However, the offtake agreement remains non-exclusive meaning NSL has scope to source better deals on the market.

A run of mine is expected to start within the coming days, with payment to be settled a week after invoice.

“The receipt of this commercial scale PO [purchase order] from BMM us a further significant step forward for the company’s business goals, as the only foreign company to own and operate iron ore mines in India,” managing director Cedric Goode said.

About NSL Consolidated (ASX:NSL)

NSL is set up in the Andhra Pradesh region of India where it uses beneficiation processes to bring low-grade ore up to a saleable grade.

It has a two-plant strategy in place, with the latest purchase order from the phase one ‘dry’ plant.

That plant is slated to have an ultimate throughput capacity of 680,000 tonnes per year of low-grade ore, and after it’s been through the dry plant the company will have 200,000 tonnes per year of 50-55% grade ore.

Meanwhile, phase two is being planned as a wet beneficiation plant capable of producing 200,000tpa with a grade of 58-62%.

Last week it told its investors that it had reached a pivotal milestone in the wet plant deal, securing the cash from a previously announced facility to underpin the plant construction in China.



General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.