I think there are broadly three news items related to NMDC.
- Demerger of steel plant where 16000 cr is spent and not reflected in current valuation. This is positive for existing shareholders as the steel plant will be listed with mirror shareholding and so the listing price can be around 50 rs. Al
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New Royalty premium being asked by states from all PSUs. Here, the decision will be taken in 3 months time. This is negative for shareholders as NMDC has to shell out more premium.
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Private steel companies like JSW Steel are pushing for reauction of mines held by mining companies. In these times of low GST collection and states looking for more revenue, I think logically this option will be pushed hard. Especially, when there is 250 billion dollar revenue opportunity.This is negative for NMDC shareholders and if worked well, can start glorious steel bull run.
Disclosure - Invested in NMDC and JSW Steel