Zincox Share Discussion Threads

[propercharlie] 02/4/2013 12:54

Rath, time does have the habit of eroding confidence, but it is not yet 1 month since the last update and whilst it would be good to have had an update, I really did not expect one yet.
IMO we will get one mid month.
as for the $5m, it may or may not have been approved. we have nothing other than erosision caused by impatience to judge that!
IMO the koreans are not going to allow this to not work, they have so much to gain by it and we are so close now.

[rathkum] 02/4/2013 09:44

No where!!

Do we know if they have secured the $5m funding from Standard Bank according to the last RNS. I guess not, otherwise the company would have issued a RNS saying so. This is looking bleaker by the day.

[chrisdgb] 02/4/2013 09:30

Where do we go from here...??

[chrisdgb] 20/3/2013 08:08

Yes market basically saying at the moment it has NO idea how to value the company...that is highlighted by the broker price target..!!

[cyfran101] 12/3/2013 14:19

Down, down deeper and down.

At present the question is will this company go bust because currently its being valued as though thats a possibility!!

A valuation that will be left behind as the newsflow gets more positive.

[rathkum] 11/3/2013 23:06

Agree with your analysis, have a gut feeling that today may mark as a final shake of the tree. The volume was interesting. Let's see what tomorrow brings.

[propercharlie] 11/3/2013 22:48

what one must ask oneself is:
would the latest RNS contain a load of lies, in that the company in fact is unable to solve the problems that it faces?
would they put in the RNS that they have agreed a facility with Standard Chartered (subject to credit committee) if they had not done so and if they and STAN were not confident that it would be approved?

If the answer to the above is No! Then the logical outcome is that:
The problems are under control and have a very high probability of a good outcome
The facility has a very high probablity of being agreed.

For both those reasons I am now increasing my holding.
I also belive that this afternoons buying marked the first turning of the tide and the share price has almost is not already reached it bottom. If / when the company gets a sustained 3 months production being the trigger for the funding for KR2, then (to use another's phrase) this is screaming bargain!

All IMO etc.

[loganair] 11/3/2013 17:35

• ZincOx has sold its Jabali zinc oxide project in the Yemen to its joint venture partner Ansan Wikfs (Jabal Salab) Ltd..

• The signature payment is US$1 with the rest of the consideration to be paid from cash generated by the project, when or if the company comes into production.

• The company state that the structure is similar to the agreement which was so successfully used with the Shaimerden project in Kazakhstan.

• ZincOx earned substantially from Shaimerden when it was developed by Glencore and when zinc prices rose substantially giving ZincOx cash for the advancement and development of its EAFD business.

• ZincOx also retains license and technical service agreements for with the Jabali project to support the projects' commercialisation and this could help management to push the project along. Eg the joint venture partners will need ZincOx's support and this will serve to keep the two companies in close contact.

• The company is now ramping up its $100m EAFD recycling facility in Korea to process 400,000tpa of EAFD grading 23.1% zinc.

• The EAFD is effectively for free with payments only made for EAFD material when zinc prices are high.

• A second phase $100-110m expansion is due for completion in Q1 2014

Conclusion: ZincOx's effective sale of the Jabali project marks its transition into a new EAFD processor. We look forward to further production updates from the Korean EAFD plant.

[propercharlie] 11/3/2013 10:49

make sense to me to focus resurces on the recycling rather than resources. the Yemen project was non core , a diversion of management time and funds.

just to balance the half full evaluation of Kend..

from the RNS it says thatplant has run to target, problems are solvable, and they look to running at target capacity... if that is so then FinnCap earnings forecast are real and this is a bargain!

Over the last fortnight, however, the plant has run well, achieving 82% of required throughput, equivalent to a monthly rate of 12,700 tonnes.

"Before next winter, modifications to KRP will be made to enable overall monthly throughput to be maintained at design capacity should such restrictions be reintroduced."

"Since the beginning of the year, the plant has been operating at or close to full target throughput on an hourly basis and mechanical equipment is running for long periods at a level greater than that for most of last year."

"In almost all cases these issues can be resolved by minor modifications but require operations to be suspended."

Re heat exchnage fan "...A suitably resistant material has been identified, new parts have been fabricated and next week a closure is planned for their installation in order to address this issue permanently."

"As a result of the recent modifications, and following next week's closure, the throughput of the plant is expected to increase steadily over the coming weeks."

"...we believe the issues that could impact throughput are now largely behind us, and we look forward to achieving the target capacity."

"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"

[loganair] 11/3/2013 10:11

RNS both good and bad news.

Good – can now focus on South Korea and do not have to spend £10mlns developing a project that will take years before seeing any return.

Bad – Shows they do not have sufficient funds to develop the project in the Yemen.

So far little reaction from the markets as hardly any volume of trades have gone through this morning.

FinnCap - ZincOx own brokers on 6th March gave for the 2013 financial year ahead for ZincOx an estimated pre-tax profit of £10mln with Earnings Per share of 9.7p.

[bulltradept] 11/3/2013 07:04

Interesting RNS

[kendonagasaki] 09/3/2013 21:09

The only pace zincox are going is to below 20p when the market realises how bad a mess they really are into now.Laurel and Hardy springs to mind.

[loganair] 09/3/2013 09:23

I think it's a good decision that ZincOx decided to open their first facility in South Korea with Russia being their second intended country of operation as throughout the 60's, 70's, 80's and 90's South Korea was the industrial little brother of Japan whereas today Japan is becoming the industrial little brother of South Korea.

At least ZincOx are in the right place.

[kendonagasaki] 08/3/2013 13:26

5 million just borrowed to stay alive!!!I see this as a very bad omen IMHO!

[rathkum] 08/3/2013 13:16

The selling has been relentless. Investors are taking a very dim view of any recovery.

The company took a short cut by purchasing second hand parts for the recycling plant from USA. Now they are paying the price for fixing it.

[giant steps] 08/3/2013 11:07

It's a brutal market for zincox, the price of not meeting expectations

ZOX reminder prices bid 24.5p offer 26p

[kendonagasaki] 08/3/2013 10:41

I can know see why Prudential reduced their holdings significantly last month...bet they have a better crystal ball then we did??

[kendonagasaki] 08/3/2013 10:36

We have had to borrow 5 million on top of the 7 million loss.We are greeting heavily into debt whist not producing results a very, very precarious position to keep getting ourselves into?!CAUTION ADVISED!

[chrisdgb] 07/3/2013 15:24

i know but they could have put 50p..!!

[chrisdgb] 07/3/2013 15:24

i know but they could have put 50p..!!

[rathkum] 07/3/2013 15:23

finncap are joint house brokers so no surprise there. They are hardly likely to take a negative stance

[chrisdgb] 07/3/2013 14:59

that certainly would be a 'substantial rerating'....looking to top up..

[loganair] 07/3/2013 14:29

broker finnCap stuck by its 140p target price on zinc recycling specialist ZincOx Resources (LON:ZOX) despite what it called "disappointing" technical glitches.

"Once sustained, profitable output can be demonstrated, we believe the shares should see a substantial rerating," it said.

[greg the grinch] 07/3/2013 14:10

Its so overdone....problems are going to happen when sorting out a new process.
It will get fixed and in a few years time when they have another plant set up with more on the horizon its £5.

In the meantime I think there are people taking losses as the financial year comes to an end.

It will snap back up at speed at some point.

[rathkum] 06/3/2013 19:55

What has shaken investors and the markets is the fact that £6.5m or so has been spent since the last placing to rectify the various problem and we are still nowhere near a solution. No wonder investors were selling out in force today.