NSL Consolidated (ASX: NSL)
NSL Consolidated (ASX: NSL) has been working up a plan to extract high-grade iron ore in excess of 60% Fe, with the commercially-lucrative appeal of being an ultra-low-cost producer.
Thus far it is making a good fist of its ambition through its operations within the growing Indian economy – in fact, NSL is the only foreign owned iron ore producer in the Indian market.
Recently, NSL announced a purchase order for 20,000t of high-grade iron ore secured from Infinity Ores. It follows on from a 4,000t purchase order from BMM Ispat.
Given NSL’s current rate in acquiring new customers, combined with its broader expansion plans that include a full-scale steel mill and eventually, around 2.5 million tonnes of 65%-grade iron in annual production, it looks to be moving forward at a rapid pace.
Currently valued at $69 million by market cap, NSL is now making a beeline for multi-million dollar revenues in the coming months as it continues its steady progress.
NSL has proven its iron-ore grade and quantity, and has now validated its entire business case with its first sales agreement, before its Phase 2 beneficiation plant has even been completed.
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NSL is now formally approved by the Indian government to utilise 250 acres of land for its pellet plant, and 750 acres for the steel plant – which will allow NSL to extract value from a larger part of the iron ore value chain.
The company is now on the verge of opening its first iron ore mine, recording its first iron ore revenues and establishing a clear production path with first-mover advantage attached.