ELE - Elmore Ltd

[mobcat]

Re: NSL - NSL Health

Hi Chewy,

3 points,

1. NSL's Mkt Cap is currently $7.5m GDA's current Mkt Cap is like $25m and they have nothing, a 20% interest in some W.A. project JV'd with CAZ, and some other licences, GDA's management are poor and this can be seen from the track record and SP performance, NSL on the other hand is a recap which leads me to point 2

2. NSL is a recap of a Health company, over the last 2 yrs the Steinpris boys have recapped DYL WMT EXT BLR to name a few, the story always starts off the same, its a failed dog company being recapped, they find a great project, and bring in good management and off she goes, so to answer your question the current directors are new fresh blood, they and the Steinpris group appear to hold 60% - 80% of the shares of this company and the company has recently appointed a geologist to its board who is assisiting with the project etc, including grade and size verification, which brings me to point 3

3. The company themselves said the overall deposit is likely to be a combination of Haematite and Magnetite (see my first post extract 1) however the project is expected to have a minimum 200Mt's that is 60% Haematite, the results they had were rock chips, rock chips sometimes aren't representative of whats below as they are exposed and have thus been weathered etc etc, ie even if the company had 65% rock samples at surface there is no guarantee that the actuall deposit is 60%+ you only know that once its drilled, however if you check my first post and see the 3rd extract you'll see the Indian Govt outlined a historical "80Mt High grade Iron Ore resources comprising banded magnetite and haematite" (This is a direct quote from extract 3)

Now you ask about drilling results etc, well I refer you back to point 1. What is the Mkt Cap of the company? If this company had drilling results pending for a potential 200Mt Haematite deposit the Mkt cap would be $200m+ so please keep everything in context

I encourage people to do some research on GDA and see exactly what they have that justifies a $25m+ Mkt Cap, for that matter what work has FDL done to come up with its target? Have they drilled? No, Do they even have rock chips? No, is it a historical area? No its all greenfields (ie new) yet its Mkt Cap is $120m+



I am interested to hear other peoples thoughts but please keep in mind that the companies mkt cap is $7.5m and is thus not demanding by any means given the potential it offers, if at this mkt cap your expecting a JORC or 60% fe drill hits then your a wee bit looney as with either of those the mkt cap would be many multiples of the current level

I love this one YT 80% top 20 heavy ....MAN when they move with that weight on the top holding tight things are good for holders as a rule...... possible 200mt strike MCAP $7500K what a joke .......Steinpris Thanks for giving birth to another IO penny GEM pitty us mere mortals can only play with the 20% left in play this one will move given the right wind and results and as we all know what do,s the market love after a down turn a good fundamently sound oily penny or a penny miner with prospects interesting times ahead for NSL holders no doubt and add Indias insatiable demand for IO into the equation ATM all at the back door ..........Nice hey happy to be on board

 

[YOUNG_TRADER]

Re: NSL - NSL Health

Hey Chewy was just doing a bit more research and I think you shouldn't discount the magnetite side of NSL's potential,

I use VMS as a benchmark, check out this report I found on their web site http://www.ventureminerals.com.au/documents/VMS0061StrachanReport.pdf

Peter Strachan says that Outlining just 25 million tonnes of
ore could be worth over $150 million on an NPV basis, and he's talking about MAGNETITE!!

That 25Mt's and NSL have a potential 200Mt's of Haematite and Magentite as a minimum exploration target and the Indian Govt outline 80Mt's High grade Iron Ore resources comprising banded magnetite and haematite

Also note how Indian Iron Ore attracts the highest price

 

[Gekko]

Re: NSL - NSL Health

Hey Chewy was just doing a bit more research and I think you shouldn't discount the magnetite side of NSL's potential,

I use VMS as a benchmark, check out this report I found on their web site http://www.ventureminerals.com.au/documents/VMS0061StrachanReport.pdf

Peter Strachan says that Outlining just 25 million tonnes of
ore could be worth over $150 million on an NPV basis, and he's talking about MAGNETITE!!

That 25Mt's and NSL have a potential 200Mt's of Haematite and Magentite as a minimum exploration target and the Indian Govt outline 80Mt's High grade Iron Ore resources comprising banded magnetite and haematite

Also note how Indian Iron Ore attracts the highest price

Excellent research once again youngtrader It will be interesting to see how this one plays out Based on fundamentals (potential 200Mt's of Haematite and Magentite as a minimum exploration target and the Indian Govt outline 80Mt's High grade Iron Ore resources comprising banded magnetite and haematite), it looks incredibly cheap Your comparison to GDA and others looks spot on I watched GDA in amazement Wished i entered but didnt Said i wont make that same mistake again And nsl looks to have them covered This despite a far insuperior market cap I will try to pick some up and enjoy the ride thanks for the research once again

 

[cmh888]

Re: NSL - NSL Health

Just a couple of points. Any response would be appreciated as I am considering getting in today, but am just cautious about a couple of things (maybe I am reading things incorrectly - haven't been doing this as long as most).

I am cautious about buying NSL on a low market cap. NSL has agreed to inject more capital into this project by issuing additional NSL shares - market cap goes up but not necessarily on the back of strong findings (Austind could require more capital purely for exploration). (see announcement below dated 7th December 07)

NSL's 25% interest in the project is only based on the exploration arm of the project (and it is "up to" 25% interest). See announcement below dated 31st October 07.

Am I reading correctly that NSL will be taking over Austind once the exploration arm of the project is complete (and if so, will than mean a further dilution with the issue of even more shares to fund this acquisition? If so, how will they fund infrastructure to mine - a further issue again?)? That would be at least 3 further issues (possibly a huge market cap and an inexperienced company trying to start and operate an Iron Ore mine in India).

Hopefully I am wrong with these points, then I'll buy buy buy and make a squillion

7 December 2007 Announcement

Austind has applied for and obtained the consent of NSL to raise up to an additional $10 million through the issue of shares in Austind at a price of $0.20 each. Under the terms of the Option Deed, if Austind raises additional equity capital to support its various programs in respect of the Indian Iron Ore Project, NSL has agreed to increase the consideration payable for the purchase of all of the shares in Austind (assuming the Put or the Call Option is exercised) on a dollar for dollar basis. i.e. NSL will issue additional shares to the Austind shareholders at deemed price of $0.03 per NSL share in respect of every additional dollar of funds raised by Austind.


31 October 2007 Announcement

3. Execution of option agreement

NSL is pleased to confirm that the Option Agreement (referred to in the announcement made of 22 October 2007) has now been executed.

NSL now has a binding option to acquire 100% of Austind (the party with the rights to the Project) following completion of the Stage 1 Exploration Program and deliniation of the exploration potential of the Project.

Recent press articles have erroneously stated that NSL has on option over only 25% of the Project. These articles are incorrect. The Joint Venture with Austind allows NSL to earn up to a 25% interest by spending between $300,000 and $400,000 on the Stage 1 Exploration Program.

Following the completion of the Stage 1 Exploration Program, NSL will then have an option to acquire 100% of Austind (the party with the rights to the Project).

 

[mobcat]

Re: NSL - NSL Health

Got me some more this morning markets can present op,s on a platter at times this looks like one of them today 2.3 > 2.5 what a entry to a share with such potential thank you Mr DOW

 

[YOUNG_TRADER]

Re: NSL - NSL Health

Hi cmh

Your right, NSL will have to issue 1Billion shares if the project JORC's 200Mt's@60% Fe minimum

So current shares = 300m + new shares once JORC = 1000m Total = 1.3 Billion + say 200m more for some extra cash = say 1.5 Billion

But then for all this to happen the company will have a JORC 200Mt@60%Fe deposit, the EV on this at $10/t = $1.2 Billion

You divide that by the 1.5Billion shares on issue and it equlas a share price of about 80c

Now if they JORC more than 200Mt's they have to give even more shares, but bottom line is who cares, the current SP is 2.5c

So regardless of how much they issue, it will only be issued once a 200Mt @60%Fe project is confirmed and as I've shown the EV value of this is over $1Billion Dollars,

So do the math and you'll see no matter which way you slice it at 2.5c and a mkt cap of $7.5m its cheap given the potential upside it offers

 

[Sean K]

Re: NSL - NSL Health

Got me some more this morning markets can present op,s on a platter at times this looks like one of them today 2.3 > 2.5 what a entry to a share with such potential thank you Mr DOW

I have picked up a few this am too. I think that the markets are due for a bounce and with XAO almost hitting what I consider a strong support line around 5650 I am anticipating a technical bounce.

I agree with YT's comments that on the surface of it, this is a potential opportunity to get into something with a low market cap and spec appeal. I have watched in amazement and several junior spec companies run on practically zero fundamentals. Examples of which have been provided. Based on that I'm willing to take a chance at a company with the aim of just a few % gain before reviewing proceedings. In this environment, I'd be happy to see any green.....

There's still some questions in my mind about the grades, which I need to review, but even 200Mt magnetite is a decent deposit for a company with such a low cap. If it is below 60% though, I'm not sure where we stand??

It's quite some time before we get some real price driving news though isn't it?

 

[YOUNG_TRADER]

Re: NSL - NSL Health

I agree with YT's comments that on the surface of it, this is a potential opportunity to get into something with a low market cap and spec appeal. I have watched in amazement and several junior spec companies run on practically zero fundamentals. Examples of which have been provided. Based on that I'm willing to take a chance at a company with the aim of just a few % gain before reviewing proceedings. In this environment, I'd be happy to see any green.....

There's still some questions in my mind about the grades, which I need to review, but even 200Mt magnetite is a decent deposit for a company with such a low cap. If it is below 60% though, I'm not sure where we stand??

It's quite some time before we get some real price driving news though isn't it?

Hey Kenna,

Its amazing isn't all those stocks that run on little to no fundamentals, here I offer a penny with the prospect of a huge Iron Ore prospect and I think a few are struggling to see that at these levels and given the runs of late it offers alot of specualtive upside,

Anyway I found something very very interesting, it seems BHP maybe interested in NSL's Iron Ore project in India , as per the text next to the attached pic, BHP's field team was in attendance when NSL was out their in late 2007 sampling etc, interesting

Also Kenna I think we should be getting an update re the project sometime soon since its been about 2 months since the last one

 

[doctorj]

Re: NSL - NSL Health

Lets not forget the market is down 140 odd points today and has been down for who knows how many days running. Given downturns tend to hit these spec stocks harder than others it's a minor miracle that it's held so far.

I don't hold - I get nervous when I see a "health" company get interested mining.

 

[mobcat]

Re: NSL - NSL Health

Hey YT hows that picky of BHP lurking in the background like the vultures they are very very positive picky the big boys are sniffing around to see when the dog comes on heat LOL

 

[kpas]

Re: NSL - NSL Health

Hey YT hows that picky of BHP lurking in the background like the vultures they are very very positive picky the big boys are sniffing around to see when the dog comes on heat LOL

Mobcat, I often enjoy reading your posts - not for their technical content but for their amusement value.

I often cannot understand a word you are saying, but can use your excitement as a technical indicator of how much potential upside there is with a stock.

The more upside, the more excited you yet, the more emoticons you use and the less I can understand your posts

 

[YOUNG_TRADER]

Re: NSL - NSL Health

Lets not forget the market is down 140 odd points today and has been down for who knows how many days running. Given downturns tend to hit these spec stocks harder than others it's a minor miracle that it's held so far.

I don't hold - I get nervous when I see a "health" company get interested mining.

lol but you know how these recaps work doc,

It makes no difference what the company used to be, its just a shell,

You consolidate and re-issue capital = Done

You get rid of old management = Done

You run the ruler over some good projects = Almost done

You get re-rated = ?????? Yet to happen

 

[mobcat]

Re: NSL - NSL Health

Cool Kpas .....here to enjoy mate and share the experience ......it,s a seriuos biz we are in but life is more profitable if you have some fun doing it.
All the best to all NSL holders and allways remember enjoy the markets even on the down days ......get em early before the dog really comes on heat ..........Keep sniffing Mobcat

 

[doctorj]

Re: NSL - NSL Health

I know! It's what I do 9-5

Did one last week that was a couple of cents before suspension and came out of suspension (after raising at 20c) now sit at 17c or so. Easy cash if you can hold through.

lol but you know how these recaps work doc,

It makes no difference what the company used to be, its just a shell,

You consolidate and re-issue capital = Done

You get rid of old management = Done

You run the ruler over some good projects = Almost done

You get re-rated = ?????? Yet to happen

 

[YOUNG_TRADER]

Re: NSL - NSL Health

I know! It's what I do 9-5

Did one last week that was a couple of cents before suspension and came out of suspension (after raising at 20c) now sit at 17c or so. Easy cash if you can hold through.

Hey where's the mates info? he he he

Geez that would have been nice, if you don't mind me asking what sector was it?

 

[bigt]

Re: NSL - NSL Health

Wow...5 million went through at 2.3c...someone wanted out! Thoughts as to why so many at such a low (relative) price?

 

[YOUNG_TRADER]

Re: NSL - NSL Health

Wow...5 million went through at 2.3c...someone wanted out! Thoughts as to why so many at such a low (relative) price?

I think its all a bit suss,

A 5m buy went up at 2.3c and literally a few seconds later a huge sell hits it all at the day low, I don't think so

Sounds like a trader shaking the tree to me

It just happened to fast to be 2 seperate people

 

[Gekko]

Re: NSL - NSL Health

I think its all a bit suss,

A 5m buy went up at 2.3c and literally a few seconds later a huge sell hits it all at the day low, I don't think so

Sounds like a trader shaking the tree to me

It just happened to fast to be 2 seperate people

youngtrader i too saw that. i reckon it was done by the same person to make it look weak.
it was also suss how straight away after the order executed a whole bunch of buy orders went up at and abover that level>at 2.4 and 2.5. it looks like they know this is about to run and someone was getting a feel for the stock.
yt, where's the breakout? 3cents?> theres little sell depth after 3 cents.
also, when's the iron ore resource update?

 

[YOUNG_TRADER]

Re: NSL - NSL Health

I just think it was dodgey

I mean lets look at it realistically, if you had 6m to sell and saw a 5m buy go up at the low of today would you

a) Hit 2.3c

b) just feed out parcels ie 400k, 600k at 2.5c

Obviously you'd do the latter, the stock looked like it was about to explode and I think that a trader decided he didn't have enough yet

I reckon it was purely done to make it look weak

Reminds me of GDA 1.2c-2c, it was getting sold and held back

But this isn't a fact, its just me specualting, be interested to hear what others think, did anyone else see it?

 

[G-Zilla]

Re: NSL - NSL Health

looking at the sell side there are not too many sellers all the way up to 3c. If someone wanted to buy a large parcel they would need to pay up. As mentioned before it looks like a trader trying to shake out some sellers.

Either way it looks as though interest is building for this one.

If the US market goes well tonight, it is closed next monday so we have 2 days next week before the DOW gives the ASX a lead. It will be interesting to see where it ends up if the ASX has a green day.