Zincox Share Discussion Threads

[gingerplant] 11/4/2012 08:06

No - the reason is because this is a 'nothing much' delay IMO and I would like the opprtunity to buy more for what I see as an excellent long-term investment as I pointed out here at 53p last May:

www.fool.co.uk/news/investing/company-comment/2011/05/04/valued-at-cash-with-big-potential.aspx

[gingerplant] 11/4/2012 07:43

Personally, I hope it hammers the price! :-)

[cestnous] 11/4/2012 07:41

This won't please the market. No doubt it's a temporary hitch which I suppose we have to expect in new technologies. I will be staying in as I suspect will be the Instis.

[triktrak] 03/4/2012 07:59

ZincOx Resources (LON:ZOX) is looking forward to starting production from its first zinc recycling plant within the next two weeks.

The plant is in the final stages of commissioning, the firm said today.

Peel Hunt commented in a note: "There is a slight two week delay to KRP1 before final commissioning. This makes little difference to ZincOx's long-term potentially very profitable global position in the zinc recycling industry.

"Post hot commissioning we expect a gradual ramp up to full production, with a successful outcome only partially priced into the shares."

It rates ZincOx a 'buy' with a target price of 126 pence.

Elsewhere, Daniel Stewart also rates the stock a 'buy' and targets a price of 139 pence.

[rawnsley] 02/4/2012 11:29

Interesting that the share price went up, might be further derisked as everything looking good in terms of the new technology

[cestnous] 02/4/2012 07:40

Nice RNS, if not exactly what we wanted. Two weeks out on a project as big as this is in my opinion brilliant.All going to plan then. Should be an interesting day.

[gilgil4] 29/3/2012 19:06

I think the RNS will be tomorrow morning, they said that they expected to make one before the end of March and it sounds like everything else is in place. Hopefully some positive news will push this up.

[riskier] 27/3/2012 09:04

Topped up at 80p yesterday. Hopefully some new this week or next.

[cestnous] 26/3/2012 10:14

That's the third time it's retreated from around the 80p mark (since I've been a holder). No doubt the pending announcement will take it well past that resistance. Heavily in here @ av. 44p.

[triktrak] 23/3/2012 16:01

ZincOx Resources (LON:ZOX) is today rated a 'buy' by broker Daniel Stewart, which says the firm is confident its first batch of recovered zinc will be delivered to its offtake partner soon.

Management are confident that the first delivery will be transferred to Korea Zinc by the end of the month, said analyst Edward Hugo.

The zinc recycling specialist already has a 10 year offtake agreement with Korea Zinc for its product from the first plant - KRP1.

It comes after the ZincOx management, which have just returned from Korea, presented to the broker yesterday.

The firm has been busy commissioning the first plant of the two-phase project aimed at producing 92,000 tonnes of zinc powder per year - and the broker noted that this plant remained on budget and on time.

"We believe successful commissioning should remove many of the technology and construction concerns and move the company's share price to one that is more affected by the long term prospects of zinc," said Hugo in a note.

Zinc, predominately used in the galvanisation of steel, is forecast to become more valuable in the future, driven by the continued economic recovery.

Hugo noted that, in particular, China's increased use of the material is likely to drive the price. Currently, around 5 per cent of Chinese steel is galvanised, compared to around 15 per cent in the west, he said.

"As China increases the quality and scope of its manufactured steel products, the percentage of steel that is galvanised is likely to rise," he said.

Daniel Stewart has a target price of 139 pence for ZincOx shares (current price: 76.25 pence).

[bigwod] 23/3/2012 15:56

production Q1 'our plan has not changed' rns next week then we go over the magic £1.00 .

[onlyonestorm] 17/3/2012 09:34

Rawnsley90 - Thanks, I didn't think we would have an 'RNS' to say that, was just interested as are others, I suspect, as to any progress or even rumoured progress with the plant!!

Would appear things are on track and that's the main thing!!

Many Thanks

Stormy

[rawnsley90] 16/3/2012 12:55

yeh my friend emailed the company, Andrew just replied everything is on scehdule for production this quarter.

You wont here anything until production starts

you dont send out an RNS saying 2 days till production

[onlyonestorm] 13/3/2012 16:50

I wonder if they will announce when plant is up and running!

Does anyone have any info on this?

Thanks in advance.

Stormy

[cyfran101] 09/3/2012 13:49

Article below provides encouraging forecast of Zinc prices:

[sweetnodude] 08/3/2012 14:10

Added at 72p earlier this week. Pleased for now....

[cestnous] 08/3/2012 11:00

Looks like the news might be on its way. Nice rise today.

[rawnsley90] 07/3/2012 23:55

talk about a stable share price since the profit taking and arrival at 73p~ on 20th~ february this has barely budged an inch! Quite an easy share to pick up more on the lull as the share price is so ridged, reduces the opportunity for getting them cheaply, I was hoping for 65p, don't think we'll see that!

Still 23 days until we hear, at the ongest! (hopefully)

[rawnsley90] 29/2/2012 18:45

Seems demand has slowed down at the moment, seems we need the next stage of production process ticked off before we can get a nice lift again. 100p might be a bit optimistic if i'm being honest, I dont think the market is applying much risk to the project anymore and is giving it a accurate value for the stage it's at

[firemac11] 27/2/2012 18:57

Hoping for some big news from these before the end of the month

[cestnous] 27/2/2012 16:06

MINESITE
February 22, 2012
ZincOx Should Ship Its First High Grade Zinc Powder Within Five Or Six Weeks
By Robert Tyerman
Andrew Woollett, the doggedly upbeat chairman of Zincox Resources, is in even more ebullient form than usual just now. If all goes to plan in the coming few weeks, his Aim-traded company is poised to embark on a new and potentially profitable phase, after years of treading a tortuous and for shareholders mostly unrewarding path - from would-be miner with interests in the Yemen and other unpromising places to aspirant steel waste recycler in Korea.

Recycling plant in Korea
"We are in the home straight and can see the chequered flag", declares Woollett, as he awaits the first production from Zincox's wholly-owned plant near Pohang in Eastern Korea. The company is hoping to produce 49,000 tonnes of zinc from 200,000 tonnes of electric arc furnace dust (EAFD) in the first year of operations.

The company's Korean Recycling Plant 1, set up at a cost of US$110million (£70 million), received its first delivery of EAFD last month from companies in the Korean Steel Association, and hopes to ship off the first 25 tonnes of high-grade zinc powder in the next five or six weeks.

According to Woollett, the three key objectives now for Zincox are: "to establish recoveries of adequate quality" from the plant, maintain a low cost operation, and to achieve targeted plant throughput. The goal for 2013 is 92,000 tonnes. The company has clinched a 10-year supply agreement with the Korean steelmakers, and has a contract to provide the recycled product to Korean Zinc, the third largest zinc producer in the world. Analysts suggest the first full year's output could generate annual earnings of almost US$30 million before interest, tax, depreciation and amortisation at current zinc prices of a little more than US$2,000 a tonne.

Korean Zinc, which advanced US$15 million of short term debt towards the project cost, has allowed Zincox a flexible pricing deal which means the new plant will break even at a zinc price as low as US$1,000 a tonne. The company was able to put US$60 million of its own money into the development of the plant, having raised US$70 million in 2008, before the collapse of Lehman Brothers.

With Korea offering a solid foundation for the company, and the mining project in politically unstable Yemen now essentially written off, Woollett, maintains 'recycling is the future of the company.' Some years ago he sold his previous zinc operation, Reunion Mining, to Anglo American for US$85 million, but his mining days now look to be well and truly behind him. Instead, Zincox is looking forward to opening more recycling plants Korea, has its eyes on other potential recycling operations in Thailand, Turkey and the USA.

Woollett insists that the Zincox recycling process scores over other recycling processes vying for the same business, both commercially and environmentally. The company uses a proprietary technology developed in the USA, which, he argues, beats the traditional Waelz process, which produces lower-grade zinc oxide with greater associated environmental problems.

According to Woollett, Zincox began using a hydrometallurgical leaching process, but found it produced unhelpfully complex iron by-products and "lots of waste"', besides being less environmentally benign than the current method of using rotary hearth furnaces. "Hydromet uses fire and brimstone, burning and melting the material in the plant, while we heat but do not melt, and produce two valuable products - zinc concentrate fit for a smelter and an intermediate iron product", he says.

The next few weeks will show whether the Zincox of today can achieve what has eluded it before. Floated at 120p as long ago as 2001, Zincox shares hit 427p in 2007, but as the zinc price crumbled from a high of US$4,500 a tonne in 2006 to just US$1,000 two years later, the shares plunged to as low as 25.5p. The most recent raise was done at 56p when the company raised £6.25 million back in November,

With zinc now double that low, investors increasingly seem to believe Woollett has a fair chance of bringing home the bacon. The shares have moved up from 48.13p to 80.13p over the past year, valuing the company at £71.3 million. Analysts at Singer Capital Markets reckon full-year losses for 2012 should drop from a previous £5 million to only £300,000, with pre-tax profits of nearly £8 million in the cards for 2013.

'It has been a marathon,' reflects Woollett. Risks, commercial and economic, remain, but, after many false starts, his persistence could at last be about to pay off for strong-nerved supporters.

[greenroom78] 18/2/2012 10:45

Thanks Matt, should've been done a while ago really as the moderator on the old thread had been a little bitter for a while.