Zincox Share Discussion Threads

[rathkum] 01/11/2012 08:52

All the optimism along with glowing brokers forecast from a year ago have come to nothing. There is lot that the company has to prove before the market give the thumbs up about the viability of this project and with the weak price of zinc, this is still a long shot.

Whilst it is tempting to average down, I'll stay away this time round having added after the last round of fund raising. I guess this round of fund raising will allow the "boys" to get in on the cheap.

[gingerplant] 01/11/2012 08:39

I'm also disappointed, but there are two ways of reading it and the good way is that the cash is demonstrably needed as the technology has now proved itself beyond any reasonable doubt. If that is the case, then extra cash was always going to be needed and, presumably, will be again for Thailand, Turkey, the USA and China. It's all a question of having the fortitude to average down at the right times if you believe the long term story. I haven't done so yet and am well underwater having bought at an average of 70p.

[propercharlie] 01/11/2012 08:24

Well, I am disappointed, but kick myself that i should have seen the signs. The BOD said that all had been completed and on time; with new bank funding in place and now there is a equity fund raising to complete the first site, added to which is a statement that there have been problems with materials. Bottom line is that the project is delayed, cash flows will be impacted.
Some must have known of a placing as this has been walked down by AT trades for a few weeks.

But that said at 43 I stay in as the prospect long term IMO is good.

[ceohunter] 31/10/2012 14:56

* ZOX Investor Presentation in Edinburgh - 28th November - 6pm *

The directors of Providence Resources (AIM: PVR), Northern Petroleum (AIM: NOP), Zanaga Iron Ore Company (AIM: ZIOC) and ZincOx Resources (AIM: ZOX) will be presenting in Edinburgh on Wednesday 28th November.

Venue: The Scotsman Hotel, 20 North Bridge, Edinburgh, EH1 1TR

The presentations will start at 6:00pm and finish at approx 8:00pm. After the presentations are complete the directors will also be available to take questions during a free canapé and wine reception.

Free to attend.

REGISTER HERE:

[cashpo1nt] 22/10/2012 17:12

Agreed Etarip. In spite of the above comments I find it hard to see the news as other than positive.

[etarip] 22/10/2012 13:22

Even though it is Russian and a long way in the future it may encourage others to look into the merits of the process with more immediate benefits.

[grahamburn] 22/10/2012 12:52

More importantly, it's a long term project: facts and figures on the viability or otherwise will not be available for a couple of years. And then, if it is viable, there will probably be a long lead time to it producing revenues (and profits!).

[adam] 22/10/2012 12:44

coz it's Russian, and there will likely therefore be fraud, corruption and theft.

[cashpo1nt] 22/10/2012 12:33

Hard to see why the share price should go down when we learn that the Russians have decided Zincox has the best solution to dealing with EAFD. I can see no indication that we have to put significant cash into the venture. Maybe that is the concern. Can anybody shed any light on the issue?

[adc4] 18/9/2012 22:34

well I guess we can all be happy to be above 50p again now ;-)

[cyfran101] 13/9/2012 01:02

Making cash at $1900 and this is without any revenue from iron sold back too!

Still a few teething troubles with the corrosion but these will all come in handy for the 2nd phase.

Like Gingerplant i'm happy to hold :)

[greg the grinch] 12/9/2012 16:30

ie "and latterly it has been operating at over 70% of first year's target capacity, which at today's zinc price (US$1,900/t) generates a positive EBITDA(1) . "

[greg the grinch] 12/9/2012 16:29

excellent rns............ why? .... making cash at $1900.

steady climb from here imho

[adc4] 12/9/2012 14:00

Agreed one for the back burner. Can't say I'm tempted with any more at this stage though, seems to be have a habit of curate's egg RNS'

[etarip] 12/9/2012 10:49

Gepetto:

From the RNS:

"it has been operating at over 70% of first year's target capacity, which at today's zinc price (US$1,900/t) generates a positive EBITDA"

As operating capacity approaches 100% of first year's target capacity the EBITDA
should improve. Plus the iron income plus any improvement in the price of zinc. I would like to know when they become profitable including interest and depreciation.

[gepetto] 12/9/2012 09:27

I think they key message here was that they have established a cash flow positive production run even without the iron income. So iron ore prices being low does not affect them as they are fully sufficient on Zinc alone.
They used that milestone to 'bury bad news' as well. Good on them.
I've topped up on yesterday's dip, very little downside risk left from here.

[piadda] 12/9/2012 08:45

The market agrees with you. Never fails to surprise me.

[etarip] 12/9/2012 08:36

I disagree piadda. The share price at this level indicated that something major had gone wrong. They seem to have delayed an update until they had the problem under control. I do agree they are having more than their fair share of teething problems but then on the other hand they did not go over budget on construction and were not too late in starting initial production. Therefore I am still optimistic.

[piadda] 12/9/2012 08:19

Three weeks out of production is bad news. While it may qualify as a teething problem, it seems to be one in a long series. I can't see the German companies paying for the lost production. It also pushes out the production ramp up which I had expected to be complete by now. It doesn't bode well for the share price today.

[gingerplant] 12/9/2012 08:08

Generaly good update IMO (two steps fwd, one step back). One to buy & forget for a while IMO - wake me up in to years' time when it's 150p...

[adc4] 11/9/2012 15:56

Anyone for jam ?

[propercharlie] 16/8/2012 08:09

AD, understand caution, hopefullly with Wollets statement that they will be cash positive soon, this will turn out good!

[adc4] 15/8/2012 23:38

Maybe regret not selling out at around 80p a while back but high hopes that ZOX will still make £1 in the next few months. Encouraging report today, topped up recently whist in the low 50's. Hope it's not another jam tomorrow AIM affair !

[propercharlie] 15/8/2012 17:23

Small cap round up today,

"....Minor issues are to be expected as the ramp-up of ZincOx's (LON:ZOX) revolutionary recycling plant continues, according to City broker Daniel Stewart.
Analyst Edward Hugo gave a generally upbeat assessment of progress to date in a note to clients as he reiterated his 'buy' advice and 139 pence a share price target.
Hugo was sanguine about these teething troubles, which he believes will prove useful lessons learned when it comes to commissioning the company's second plant.
"We believe the long-term prospects for ZincOx, and its future acquisition potential, mean that despite KRP1 [plant] taking longer to ramp up to full production and depressed zinc prices at present, ZincOx remains a buy."