NSL consolidated prepares for March production of 63% Fe filter cake
NSL Consolidated (ASX: NSL) confirmed on Tuesday that a visit by BMM Ispat (BMM) to the group’s Phase Two Wet Beneficiation Plant will be conducted for specification inspection of initial tonnes produced under the purchase order for the supply of 4,000 tonnes of 63% Fe filter cake (wet plant product).
Expected to occur this week, this is a significant milestone for the company as it is the precursor to dispatch of the wet plant product.
In the interim, NSL is progressing other commercial discussions with multiple customers for its wet plant product, and it also continues to investigate export prospects into the improving seaborne iron ore market.
During the past two weeks of optimisation ramp up, the operation has experienced reduced iron ore slurry pump performance. This is now being rectified with spare parts due on site in the coming days. Replacements are expected to be completed progressively this week.
This news appears to have had a negative impact on the company’s shares on Tuesday morning, as they have fallen by more than 10%. However, this could represent a buying opportunity given that the repairs should be completed in time for production of ore for BMM.
Of course 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.
NSL continues to beneficiate low-grade iron ore waste to 62% plus Fe
NSL has been able to repeatedly beneficiate low grade iron ore waste as low as 14% Fe feed regularly to in excess of 62% Fe and with the confirmed imminent sales, the company is preparing both human and physical resources to address the sharp uptick in production.
NSL is the only Australian or foreign company to own and operate in India’s iron ore market, having established a plant that will produce premium price iron ore product nominally grading between 58-62% Fe at around 200,000 tonnes per annum. The plant at the existing NSL stockyard will be fed material from NSL’s mines and third party sources.
The company enters this important transitionary period debt free with a strong balance sheet and ample cash reserves, leaving it with head room to make acquisitions and/fund internal growth.