Zincox Share Discussion Threads

[here and there] 06/3/2013 16:10

lts of small sells and few big buys...

[bam bam rubble] 06/3/2013 15:22

As bad news goes, there's a lot of it to digest in today's update;

"Production fell due to stoppages for repairs, remediation work, power restrictions, etc"

"Corrosion in the heat exchanger was thought to be resolved in 2012, but has continued at a lower rate at base of the units. Temporary plant closure in mid-March to address issue"

"The modified hot briquetting circuit will also need optimising over the next few weeks"

"Baghouse (final recovery) failed to perform properly at full capacity over long periods and hourly throughput will be restricted until the necessary modifications are in place"

"Other plant modifications required by winter 2014 in order for monthly throughput to be maintained if the recent national power usage restrictions are re-introduced next year"

"Other winterisation steps to be taken to prevent cold temperature problems reoccurring"

"Equipment being severely tested and in some cases is not performing as designed. All of the issues require plant downtime. Almost all are resolvable with minor modifications.."

[etarip] 06/3/2013 15:08

loganair:

mm's are never-the-less buyers and sellers. Of course they adjust their buy/offer prices at which they will deal but so do others.

[propercharlie] 06/3/2013 15:04

It amazes me that when a fund wants to sell huge volumes the price goes down (relatively)slowly, but when PIs want to sells aem volume it would dive like a rocket.
The 1 plus milion today should see M&G near to completing its sale.
As for SOROS rumour no idea.

[greg the grinch] 06/3/2013 13:46

This is so cheap/oversold.

I also heard on the deltex thread that due to some rules a soros fund had to dump a number of aim shares and I would not be surprised if this was one.

[propercharlie] 06/3/2013 13:31

I think this is into bargain territory, but as always there is risk!

[loganair] 06/3/2013 13:26

etarip - not strictly true, the job of the mm's is to buy what ever shares come on to the market whether they like to or not. The important thing is are they then easily managing to sell them on.

[etarip] 06/3/2013 13:22

rathkum

Well, as every share sold has to have a buyer, it must be that the sellers think the share price is pure speculation and that the buyers think it is cheap. If all goes reasonably well with the project the latter may be getting a great bargain. I am inclined to be with the optimists.

[rathkum] 06/3/2013 11:54

etarip

The most worrying for me are various issues relating to the plant that is sucking in cash all the time. Yes the plant will eventually get sorted but in the meantime all the cash from the December placing has been used up.

This is the bit that is cause for concern. One would expect the facility to be rubber stamped, but hold on, it has to be approved.

'As part of the Company's ongoing relationship with Standard Chartered Bank, it is putting in place a working capital facility of up to US$5 million with Standard Chartered Bank Korea Ltd, and is awaiting the approval of its Credit Committee.'

How long will this cash last if ongoing problem with the plant persist. Then what? Placing at 20p. Tough to call if it cheap at today's price or a pure speculation from here.

[chrisdgb] 06/3/2013 11:43

FinnCap target today released....141p.....yes please...!!

[propercharlie] 06/3/2013 09:07

I think the teething problems are fully reflected and on top of any concerns about plant there has been a fund which has decided to withdraw from ZOX due to change of fund manager.
If the the teething problem had not occurred and the plant was delivering its EBIDA promise the share price would be north of 100.

The throughput is 80% which is above target. I read that they have a very high confidence of sortig teh problems out and then they can replicate with KR2 and other markets.

[etarip] 06/3/2013 08:58

rathkum:

Do you not think that the present share price already reflects (or even over reflects) the concerns for working capital. At the very least the RNS says there has been no calamity or major setback to the poject, only delay and teething problems which is normal when setting up a new plant/process.

When, I trust it will be when and not if, they get the plant producing to target or near target output they can start plans for the second stage in Korea and follow that up in other places.

[rathkum] 06/3/2013 08:42

I suspect the markets main concern is the working capital requirements if the teething problems become an ongoing issue. And where does the next round of funding come from when Standard Chartered says no more and investor confidence begins to fade.

[chrisdgb] 06/3/2013 08:03

Fully reflected already, can bounce with this visibility..no fund raising..

[boonkoh] 06/3/2013 07:23

Yet more "teething" problems, these should have been all identified and fixed months ago. And no mention of other opportunities. The only good thing is the new working capital facility. At least no fundraising on the cards.Would have been great if they'd affirmed they could still meet market expectations for the year. No comment on that means it's a big open questions still.

[adc4] 06/3/2013 07:21

I guess the clues were there in the constant drift of the share price Doesn't sound great running a business in South Korea does it ? Power cuts and substandard plant ! I'd like to think that this is priced into the fall to 30p but no doubt it'll be a day that sees a few more bail out at any price offered. Oh well Jam tomorrow ( again...)

[giant steps] 06/3/2013 07:14

We now learn why the share price has been eroded

Problems and power restrictions delay ramp up

RNS 6th March 2013

[loganair] 05/3/2013 09:26

Next financial year all the brokers are expecting ZincOx to make a profit.

After investing in a company if one is unable to take the anxiety of seeing that investment fall by a half before rebounding, should one really be in the stock market in the first place?

[here and there] 04/3/2013 20:06

it is the classic low point/s as a junior builds up towards production capacity. this is new technology and has teething problems. last update was encouraging. as a previous poster has pointed out, an ii is selling out. they will be gone before too long, patience will be rewarded

[rathkum] 04/3/2013 18:01

Are things seriously wrong that the share price keeps tanking. Seems that way.The overhang maybe just one other reason but not that significant

[propercharlie] 04/3/2013 13:42

btw I think there are about 1.5-8 million to sell.

[chrisdgb] 04/3/2013 13:38

getting worried with this move...

[blue59] 04/3/2013 13:21

PC thanks for sharing that, explains a lot and helps underpin my confidence in the team!

[propercharlie] 04/3/2013 13:18

I am sitting this one out. I spoke with the company, M&G are still dumping their shares. they took a decision with a new manager of teh funds and must dispose of the 6 million shares they held.
The retrofit is going ok, some delay but they see no reason to be negative about it, rather the contrary have confidence of a great outcome.

[rathkum] 01/3/2013 16:57

With the share tanking expect an RNS on Monday whether good or indifferent, that's my guess.