NSL Consolidated sells 4000 tonnes of 63% Fe at $65 per tonne
The order for 4000 tonnes of 63% Fe filter cake (wet plant product) represents the normal steel mill purchasing parcel size in India.
The client is Indian based steel manufacturing group BMM Ispat. The order will be filled immediately by NSL with payment terms within 10 days of each 1000 tonne lot being distributed.
This is an important milestone for NSL and couldn’t come at a better time with the iron ore price surging in recent days on the release of promising data regarding Chinese exports.
Of course, commodity prices do fluctuate and caution should be applied to any investment decision here and not be based on spot prices alone. Seek professional financial advice if considering an investment in this stock.
It is also an endorsement of the quality of NSL’s product, and the group is in discussions with multiple customers regarding upcoming orders.
Management is confident of being able to exceed the equivalent sale price for future purchase orders of varying grades with BMM and other Indian steel mills. The company also said there is the prospect of exporting into the seaborn iron ore market.
NSL has continued to demonstrate impressive technical expertise in beneficiating iron ore waste with grades as low as 14% Fe to produce ore in excess of 62% and up to 65.3%.
The company has managed to do this while maintaining costs at low levels, leaving it well-placed, as the only Australian or foreign company to own and operate in India’s massive iron ore market, to generate significant cash flow as it cranks up towards the targeted 200,000 tonnes per annum.
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