NSL is a small operation, low overheads, very low cost labour, australian mining expertise, extracting ore from Indian based tenements for local processing and consumption. We can produce ore at very low cost, compared with imported ore. we are the only such operator in India. Many other mines in the Kerala and Karnataka area, are not operating or have been shut down due to bad practices or corruption. the government has given assurances to NSL to streamline red tape. The stage 1 off take agreements will ideally be large contracts, so our scale can be ramped up and exact costs and profits can be determined.
Indian iron ore demand is surging due to an infrastructure boom getting underway,but they rely on imported ore, which they want to change as they have ore reserves in their own country. This is why the pricing supply and demand equation is very different to elsewhere, and why when we get the phase 1 supply figures as a contract, with our existing plant and stage 2 already in place, we are super valuable as a cash cow. IMO
NSL Price at posting:
0.7¢ Sentiment: Hold Disclosure: Held
