Zincox Share Discussion Threads

[cestnous] 23/5/2013 11:10

Back in this am after a long time watching. Bagged on it last time, then watched the profits drift away. Hopefully better luck this time.

[giant steps] 23/5/2013 11:00

We must pay the directors too much !!

RNS 23 May 2013

[chrisdgb] 23/5/2013 08:19

Sends a great message, let us hope this is the start of the recovery....

[blue59] 23/5/2013 08:15

If that comes to something then nothing will matter much worldwide anyway so it's a fair punt imo!

[granitetim] 23/5/2013 08:07

Clearly to have that much faith in the company bodes well and he clearly is not troubled to much by the Nut Job over the border!

[blue59] 23/5/2013 07:55

Yup, and the reason I keep the faith here!

[pilkersa] 23/5/2013 07:42

That's one hell of a buy!

[chrisdgb] 16/5/2013 11:43

FinnCap target price 70p.......

[solardave] 14/5/2013 12:17

House broker PLHC has now moved to the buy side!!

[solardave] 14/5/2013 12:17

House broker PLHC has now moved to the buy side!!

[sportbilly1976] 14/5/2013 09:46

bump to have most recent thread with chart and news in the header.

[propercharlie] 13/5/2013 22:42

I wrote "15 Apr'13 - 15:24 - 1453 of 1485

M&G still have another 2m to sell. Each time there is any liquidity they will sell. This is a major factor to what is holding the share price down. "

since then and especially today (1m+) there has been significant selling, which I suspect is down to M&G. If so they must be near their 2 mil.
They sold a bundle after the last RNS when a certain level of liquidity was reached. Do you think the market makers are holding the 2m, no I doubt very much so there must be a buyer for them.

We are in an interesting spot, if M&G ends its sale, then the share price will go up like a bullet on good news, or tread water, or sink on bad!

[rathkum] 13/5/2013 21:07

This is now in free-fall territory. Very Worrying, with no directors prepared to dip into their pockets to purchase shares even at these current depressed levels.

[grahamburn] 13/5/2013 20:39

NOT if the major fund has a sensible and company-specific reason for "dumping"!!

[transforma] 13/5/2013 20:36

No idea; but 16p that's an incredible buy

[grahamburn] 13/5/2013 20:34

Suppose the logical response to that statement is "Why is a major fund dumping our stock?"

[transforma] 13/5/2013 20:26

From the proactive article - "The stock chart will make depressing reading to long-term holders, but the drop in value can be ascribed almost entirely to one phenomenon, and that, according to Woollett, is "a major fund is dumping our stock; for whatever reason and we can't stop them, this is putting huge pressure on our price. It is incredibly frustrating for us and for our other shareholders."

[cyfran101] 08/5/2013 00:18

IC issued a negative stance on Iofina at circa 40p due to their belief the roll out of new plants would be problematic.

Not seeing them shout about that one now!

With all this doom and gloom maybe ZOX can surprise to the upside!

[rathkum] 07/5/2013 22:05

I guess lack of substantial director buying at these levels doesn't send out a positive signal. And now IC comes out with a doomsday scenario that is a further stab in the back.

[loganair] 07/5/2013 15:09

IC - Dump ZincOx

Substantial profits always seem to be flittering just around the corner with ZincOx Resources

(ZOX). But production delays and unexpected technical difficulties at the company's new KRP1 zinc recycling plant in Korea have pushed the prospect of operating profits back another year and we're throwing in the towel.

True, the company says it has recently resolved most of the mechanical issues with the plant, and that KRP1 has almost ramped up to full targeted capacity. But the current year has started below expectations and ZincOx did not disclose current zinc output rates in its financial results. Broker finnCap has consequently factored in a 28 per cent reduction in forecast revenues for 2013, to $46.7m (£30.1m). This is likely to have a substantial impact on profits, with finnCap now predicting a group pre-tax loss of $14.2m this year. That, in turn, could stretch the company's finances.

ZincOx's ambitious global expansion plans are also on thin ice until the company can demonstrate it can achieve sustainable profits from its operation. True, the shares are lowly rated on 3.3 times forecast earnings for 2014, but profits are incredibly sensitive to changes in output and we would be cautious.

IC VIEW: ZincOx is ramping up production at a time of very weak zinc prices. Certainly, if zinc prices were to rise, this could boost confidence levels in the company. But broker share price Angel forecasts a 400,000-tonne surplus for zinc this year, and only foresees prices recovering a little when the restocking cycle starts. We advise long-suffering shareholders to salvage whatever is left of their investment. Sell at 19p.

Last IC view: Buy, 50.75p, 27 Sep 2012

IC have been saying Sell Ocado the on-line shopping retailer for months when the share price was around 60p, with IC continued Sell stance Ocado's share price is nearly 200p to day.

[loganair] 04/5/2013 09:50

"Some experts see zinc as offering potential for good price gains as environmental pressures may limit production while potential stimulus in China may increase demand," the broker observes.

SP Angel is of the opinion that there will be a 400,000 tonne surplus for zinc this year but it can see prices recovering when restocking restarts.

"The company offers good growth potential and the market capitalisation is low for a business with the potential to expand in a metal of relative geological rarity," share price Angel says.

Remedial action is being taken to generate a sustainable and reliable industrial process at KRP1, and this should result in positive underlying earnings (EBITDA) for the plant.

This will be a precursor to arranging financing for KRP2, the second Korean recycling plant that the company intends to build.

"Finances are now more stretched as a result of delays. Despite the significant short term forecast reduction, the shares look cheap on a longer-term view, but as a necessity, we need proof of achieving a sustainable positive EBITDA before our confidence levels start to improve, and therefore a significantly higher share price can be warranted."

[loganair] 04/5/2013 09:47

The stock chart will make depressing reading to long-term holders, but the drop in value can be ascribed almost entirely to one phenomenon, and that, according to Woollett, is "a major fund is dumping our stock; for whatever reason and we can't stop them, this is putting huge pressure on our price. It is incredibly frustrating for us and for our other shareholders.

"Not surprisingly, small shareholders have become a little nervous," added Woollett.

"I am asking shareholders to keep the faith. I am as frustrated as them. We are making progress; slower than we would like, but every week we are learning and improving, we will get there."

[cyfran101] 03/5/2013 00:40

Very interesting.

Breaking even now, cash flow positive by the end of 2013, "over the hump", reaching 175,000 tonnes target by end of year with 2013 being a ramp up year are all great things to be hearing. Also great to hear testing of the iron product is underway so that will provide a 15% boost to revenue when the agreements can be made.

"Further, the directors have assessed the future funding requirements of the Group and compared them with the levels of expected finance available and, based on this work, the directors are satisfied that the Group has adequate resources for at least the next twelve months from the date of signing these financial statements"

The Zinc oxide chemical part of the report is particularly welcome (a doubling of our revenue potentially) however although the testing to see if this can be done simply will be undertaken over the next few months we won't see any "full scale implementation" from this for 3 years.

For all the positives it appears the critical milestone is ZOX giving the go ahead for the Performance Test to go ahead to prove 3 months of consistent throughput and is critical to get the draw down.

However positive they may be they will not set this process in motion until they are certain the performance problems are behind us.

With the construction of the larger briqueting segments taking at least 3 months due to the labour intensive work they require and a suitable time to test this part I don't see them calling the test until August/September meaning it will right at the end of the year when they can state the performance test was a success and draw down finance is given. I'm not sure the best time to be doing a performance test would be through another Korean winter either.

I'm weighing up if its better to take advantage of the stock overhang to pick up cheap shares or to play it safe and pick up more when the Performance Test starts but that's my conundrum to deal with. GLA