NSL Consolidated allotted land for its pellet plant and an integrated steel plant in India
At the start of the week NSL Consolidated (ASX: NSL) informed the market that it was achieving better than expected results in relation to iron ore beneficiation processing, resulting in its share price increasing circa 10%.
NSL advised on Thursday that the company had received government backing and through the Andhra Pradesh Industrial Infrastructure Corporation had been allotted 250 acres of land for the construction of a pellet plant.
A further 750 acres of land has been allocated for the establishment of a Greenfield steelmaking plant in Andhra Pradesh. The integrated steel plant would be located in the Orvakal Industrial hub, Kurnool District.
This news has provided further share price support, and the group’s current trading range implies an increase of approximately 600% over the last 12 months.
Although, it should be noted historical data in terms of earnings performance and/or share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Those considering this stock should seek independent financial advice.
As well as representing the achievement of another material milestone in developing the project, management highlighted the importance of continued support from the government of Andhra Pradesh.
NSL commenced discussions with Chinese EPC companies in December, and these are expected to recommence following the conclusion of the Chinese New Year.
In the interim, management continues to underline the financial metrics of the project which point to a possible operating profit margin of between $44 and $52 per pellet tonne.