OSK Research upgrades to Trading Buy, TP 82c on Kinsteel

Kinsteel was up three sen to 72.5 sen with 810,000 shares traded today morning.

According to OSK Research in a note Aug 1 said that aside from the progress towards the commissioning of Perwaja’s concentration and pelletisation plant in 1HFY12 which may potentially contribute to savings of US$50 per tonne of iron ore pellet, it was also excited over the Terengganu state government’s readiness to consent to Perwaja’s application to mine iron ore in Bukit Besi, Terengganu.

As iron ore fine currently costs over USD160 per tonne free-on-board (FOB) vs the local cost of less than USD50 a tonne, the concession would certainly be lucrative.