Zincox Share Discussion Threads

[loganair] 17/6/2016 13:02

etarip - It seems to me that this news means that the bod are working hard at reviving ZOX, sadly far from being out of the woods yet.

The plant in Korea on an EBIDA level is now profitable at the current Zinc price of around $2,000 per ton. I wish the RNS had also mentioned how this plant is doing.

[etarip] 17/6/2016 08:35

Does today's news mean ZOX is back from the dead?

[loganair] 08/6/2016 17:45

Price of Zinc still charging ahead, now at $2,023.50 per ton.

I am a little surpised this hasn´t moved the share price of ZOX even a jot, especially as now at this price of Zinc, the Korean Zinc plant is now running profitably.

[loganair] 07/6/2016 18:05

Spot price of Zinc has breached the $2,000 per ton mark now at $2,014 per ton, therefore the plant in Korea is making a profit and should require no futher dilution of ZOXs share of the plant.

[loganair] 06/5/2016 12:37

Zinc's slow-fuse supply story starts to catch fire: Andy Home.

The zinc market has for years been a story of shattered bullish dreams.

Time after time investors have been lured into the market by promises of supply shortfall and higher prices only to realise they were chasing a mirage.

Mines that were supposed to close always seemed able to eke out a few more years of production.

London Metal Exchange stocks would spend months declining only for massive tonnages miraculously to reappear, as often as not at the U.S port of New Orleans.

The LME price for three-month delivery hasn't made it above $2,400 per tonne for any length of time since 2011. Even though zinc has been a relative out-performer among the base metals so far this year, it is still trading a lowly range either side of $1,900.

So whisper it softly, but there really are signs that the zinc raw materials chain is now starting to tighten up.

But, and there's always a but in this market, raw materials tightness may take some time to translate into refined metal tightness. The transmission process will depend on two problematic unknowns, namely the amount of stocks in the global supply chain and a certain company called Glencore.

FALLING TREATMENT CHARGES:

The best way to get a grip on what is happening in the upstream part of the zinc market is to look at treatment charges, which are paid by smelters to miners for transforming their material into refined metal.

If treatment charges are rising, it tells you that smelters can charge more because there is ample supply. Conversely, if treatment charges are falling, it's a signal that mined concentrates availability is tightening.

And right now, treatment charges are falling.

Indeed, the benchmark treatment charge for deliveries this year has slid by 17 percent to $203 per tonne from $245 per tonne in 2015, according to the first-quarter report from Belgium's Nyrstar, one of the largest smelting entities in the world.

Beneath the headline figures there's a weird and wonderful world of "escalators", "de-escalators" and "free metal", all of which determine the level of price participation to be shared between miner and smelter.

But it's the headline figure that really counts and this year's is the lowest since 2012.

Spot treatment charges have also been falling.

Those for imported material into China are currently assessed by Shanghai Metals Market at $120 per tonne, down from $150 at the start of the year and from $200 this time last year.

Sliding charges are one reason why China's zinc concentrates imports fell by 10 percent over the first three months of this year.

The other reason is that there is less concentrate around.

FALLING PRODUCTION:

The International Lead and Zinc Study Group is forecasting mine supply outside of China to contract by 9.4 percent this year due to a combination of mine closures and price-related cutbacks.

Some of those big mines that defied for so long predictions of their imminent demise have now finally shut up shop.

The giant Century mine in Australia, for example, milled its very last ore in the first quarter of this year and has moved onto care and maintenance.

The fact that Century was still generating concentrates several months after it had supposedly closed is symptomatic of the elastic timeline of the much-anticipated zinc supply crunch.

But closed it finally has after producing 6.5 million tonnes of zinc over its 16-year life. Also now closed is the Lisheen mine in Ireland.

Accentuating such natural atrophy of mine production are the temporary suspensions initiated in reaction to low prices such as Nyrstar's mothballing of its Middle Tennessee mines.

The single biggest suspension has been the removal by Glencore of 500,000 tonnes of annualised capacity at its Australian, Kazakh and Peruvian operations.

The company reported a 28-percent decline in own-sourced zinc production to 257,100 tonnes in the first quarter of 2016.

There is a broad analysts consensus that the zinc concentrates market is going to move into significant supply-demand deficit this year.

The scale of that deficit will depend on the extent that China's small-scale zinc mine sector can lift production.

ILZSG, for example, is forecasting a 12.4-percent lift in Chinese production. But even if that proves accurate, and there are many analysts who would question whether there is that much flex in China, the Group is still looking at a 1.4-percent fall in global output this year.

TRANSMISSION:

The key question is when raw material tightness transitions to refined metal tightness.

Much, of course, is going to depend on Glencore, which has cut more production than any other zinc producer.

That suspended mine capacity will at some stage be reactivated but it seems unlikely that a company with such a big stake in the global zinc game is going to snuff out early any rally in the price.

But Glencore itself will be no doubt be sensitive to that other "known unknown" in this market, namely the amount of refined metal that is available to cushion the impact of raw materials shortfall.

There is little doubt that there are substantial tonnages of zinc being stored outside of the LME warehousing system, particularly in New Orleans.

It's been movement of this material onto LME warrant at the U.S port that has killed off premature price rallies in the past.

The last major warranting at New Orleans was in January when 40,000 tonnes hit the LME system.

But even with that inflow LME stocks have fallen below the 400,000-tonne level for the first time since 2009.

That may yet prove to be an unreliable indicator. Only time will tell whether the New Orleans carousel has a few more turns to make.

What is not in doubt, however, is that zinc's slow-fuse narrative of pending raw materials crunch is burning a lot quicker now than it has at any time in the last decade.

[loganair] 03/5/2016 19:28

The zinc price has improved significantly since the low point of US$1,461 per tonne in December 2015, to an average price of US$1,840 per tonne to date in April 2016. Following the installation of the coal injection, expected at the end of April 2016, at the current zinc price (US$1,880 per tonne) and subject to certain other assumptions, the operation should generate a positive monthly EBITDA.

Business Up-date

The Company is continuing its discussions with potential strategic and project specific partners for the development of new recycling projects.

Following the transfer of 90 per cent of the shares in ZincOx Korea, in addition to its residual 10 per cent shareholding in ZincOx Korea and its valuable proprietary technology "know-how", ZincOx also has net cash of approximately GBP360,000. All the directors have taken pay cuts while a new project for the Company is identified. The Company estimates that this should provide operating cash for up to a further 12 months on a significantly reduced overhead basis.

Share Trading

As previously announced in December 2015, following completion of the transfer, under Rule 15 of the AIM Rules for Companies ("AIM Rules"), the Company must carry out a reverse takeover within six months of the date of transfer, being 28 October 2016. In the event that the Company does not find a major project to replace KRP within six months, its shares will be suspended on AIM. If the shares remain suspended on AIM for a further six months, under Rule 41 of the AIM Rules, the admission of the shares to AIM will be cancelled. The Company may thereafter consider re-applying to have its shares admitted to trading on AIM, however it is unlikely to follow this course unless it has identified a suitable major project. It should be pointed out that there is no certainty that the Company will be able to secure a major project in the foreseeable future.

It order to maintain a trading platform for the shares of the Company so that shareholders are able to trade the shares, without interruption, the Company plans to adopt a dual listing on the ICAP Securities & Derivatives Exchange (ISDX) where a high proportion of the Company's shares are already traded on a daily basis.

Commenting on the announcement, Rod Beddows the Chairman of the Company said "The recent bounce in the zinc price has rekindled interest in zinc, the fundamental supply and demand balance of which remains encouraging, as evidenced by declining stocks. The management are working extremely hard to find a way forward for the Company with several avenues being investigated and I look forward to updating shareholders in due course"

[loganair] 03/5/2016 19:21

Zinc price still climbing, closing in on $1,950 per ton.

[loganair] 25/4/2016 11:30

Zinc remains preferred choice among the base metals: Deutsche Bank:

Deutsche Bank continue to prefer zinc over other base metals. Base metal positioning on the LME has continued to turn more bullish since the turn in mid January.

Positioning is by no means extreme is well off record levels which suggests that investors (Money Managers on the LME) remain skeptical of the longevity of the cyclical upswing in China. The exception is zinc, which on this gauge is the most preferred base metal, says Deutsche Bank.

Money manager net longs now represent 13% of the open interest on the LME versus a peak of 22% in June last year. “We continue to favour zinc as our preferred base metal, but concede that for pricing to move higher, we need to see incrementally better macro data points from China.”

[master rsi] 21/4/2016 15:54

0.925p =

Slowly there is small buys for the last few days with a couple of very small sells.
But today is all buys with 4 lots of 100k, wonder if someone is accumulating in small lots in order not to bring the prices up, but one MM has gone up on the bid joining another one already there

[loganair] 20/4/2016 12:00

Price of Zinc still climbing with the spot price breaching $1,900 per ton.

[master rsi] 18/4/2016 16:58

0.925p +0.05p

second move up today, earlier offer on the move to 0.95p and now 1p
the spread once again is larger now, but the buys were over the market size 100K and MMs must be short of stock

Different - Zinc - charts

[loganair] 18/4/2016 09:54

The Zinc price is still holding comfortably above $1,800 per ton, with todays spot price being a little over $1,850.

[master rsi] 18/4/2016 09:47

0.90p +0.025p (+2.86%)

nice to see offer price on the up and buyers paying above the old price

[master rsi] 11/4/2016 12:33

though it was mark down on the bid, after some funny trades all at once (3), the only buy has moved the offer higher and now a large spread, so unchanged for the day so far

[master rsi] 10/4/2016 21:02

From British Bull last Friday closing...

Last Signal:BUY
Last Pattern:BULLISH HARAMI CROSS
Last Close:0.90p Change:+0.05p Percent change+5.88%

Enhanced Market Outlook
Signal Update Our system’s recommendation today is to BUY.
The BULLISH HARAMI CROSS pattern finally received a confirmation because the prices crossed above the confirmation level which was at 0.8375.

[love it] 08/4/2016 14:47

Stuck £1k in it total gamble

[master rsi] 08/4/2016 14:12

0.90p+0.05p

another move up, looking better now and the trend is changing

[master rsi] 08/4/2016 13:40

the bounce is happening after a rush of buyers now

[master rsi] 06/4/2016 11:49

A couple of good size Buys since and everything is looking better

[master rsi] 06/4/2016 08:42

Some movement up on the offer side, looks inspiring

[master rsi] 05/4/2016 23:17

The chart is looking better from this point

ZOX 0.8250 =

ZINCOX RESOURCES - signal update
Last Pattern:BULLISH HARAMI CROSS

Pattern Description
This is a major bullish reversal pattern, which is even more significant than a regular Bullish Harami.

[master rsi] 05/4/2016 15:44

From the "UPS" thread...........

UPS
ZOX 0.825p ( 0.80/0.85p)

Had the retracement and the sells have stop, now should the time to start buying as the Level 2 is positive 3 v 1 and the chart at support. A shell company that 50 days ago raised money at 1p.