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NSL to fill 20,000 tonne filter cake order
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NSL Consolidated (ASX: NSL) has begun to receive the high grade feed required to supply Infinity Ores (IFO) with 20,000 tonnes of 63% Fe filter cake (wet plant product) in terms of the purchase order received in mid-April.
The high grade feed is currently being incorporated into the plant feed process and IFO is expected to deliver 10,000 tonnes of higher grade feed for blending with existing plant feed in the coming weeks.
The higher grade feed is expected to facilitate the routine production of +63% product for IFO at the negotiated sales price of AU$65 (equivalent) ex gate with payment in advance based on 1,000 tonne lots.
IFO is to provide high grade feed for blending with the existing plant feed to routinely produce +63% Fe wet plant product for the existing and expected future orders.
Commenting on this development, NSL’s Managing Director Mr Goode said, “We are very pleased to be receiving the high grade feed from IFO as part of its obligations under the purchase order, showing IFO’s commitment to the company.”
By way of background, NSL is the only Australian or foreign company to own and operate in India’s massive iron ore market. The company has established its Phase Two wet beneficiation plant that will produce premium price iron ore product nominally grading between 58% and 62% at around 200,000 tonnes per annum.
The Phase Two wet beneficiation plant at the existing NSL stockyard will be fed material from NSL’s mines.
While a retracement in NSL’s share price over the last three months can arguably be attributed to negative sentiment towards the iron ore sector, the company is a long-term play with a robust production expansion profile.
This is, however, still a speculative stock and share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Investors should seek professional financial advice if considering this stock for their portfolio.
Consequently, the recent pullback in its share price could provide a useful entry point, particularly given purchase orders for the company’s product have increased during this period.