Zincox Share Discussion Threads

[loganair] 30/5/2014 13:49

All's well as long as the price for Zinc remains above $2,000, which comfortably it is at the moment.

[janekane] 30/5/2014 06:18

At last we start to move higher

[rapier686] 23/4/2014 22:18

For what it's worth, I've bought some now the fund raising has happened.

With the price holding nicely above 10p, the open offer should be fully subscribed and they should have raised the whole £5m.

I still think it an article of faith that the ramp up can bridge the gaps from +ve plant EBITDA to whole company +ve EBITDA to covering interest and also they're probably only a couple more 'unforeseen' shutdowns away from needing another fundraising but at this price it's a risk I'm prepared to take.

[drewz] 23/4/2014 19:18

ZincOx Resources

The respected team at Majedie has grabbed troubled ZincOx Resources (ZOX.L) by the horns, buying another four million shares for around £400,000. That means it now owns 7.4% of the business.

ZincOx is developing a recycling plant in Korea, and at the start of April was forced to raise £1 million to complete the project after its cash reserves were drained by repair costs.

To attract investors' support, ZincOx had to issue new shares at a 37.5% discount. That hit means ZincOx shares have now lost more than half their value over the past year.

'Whilst I regret having to revert to shareholders to seek further support, we are pleased to see a continuing improvement in production,' said executive chairman Andrew Woollett.

Majedie co-founders James de Uphaugh and Chris Field – both AAA rated by Citywire – have historically done very well by backing out-of-favour stocks; the largest positions in their £2.5 billion UK Equity fund are currently oil giants Shell and BP. The fund has returned 59.5% over the past three years, compared with an average of 38.6% from its peer group and 31.2% from the FTSE All Share index.

[loganair] 16/4/2014 10:01

ZincOx's (LON:ZOX) Korean recycling plant is now back in production following a period of downtime during which essential repairs were completed.

During the 18 day closure period, repairs to refractory in the flue area of the rotary hearth furnace were completed, while the company also installed some new inner tubes on a couple of heat exchangers.

Speaking to Proactive Investors earlier this month, chairman Andrew Woollett said the company expects to be at, or close to, full production within a few months.

"Now that the inner tubes of all four heat exchangers have been renewed, we look forward to an uninterrupted run of production that should enable us to optimise the plant and reach full throughput," Woollett told investors.

[drewz] 16/4/2014 07:24

All refurb work completed.

Production ramp-up better go smoothly now over the next 6 months. Or else.

If all goes to plan, price will double in this time frame.

[drewz] 10/4/2014 16:14

New Proactive interview with Andrew Woollett on latest state of play:

[drewz] 02/4/2014 06:11

If those 2 paras "really worry" you, why on earth are you investing time and/or money in microcap development businesses like ZOX?

These are standard disclaimer statements required by the NOMAD to be inserted in any RNS where the company relies on equity funding to get it through the development phase to generating positive cashflow.

The disclaimers themselves are unexceptional; it only becomes an issue here, arguably, if one takes the view that management cannot be relied on to deliver due to their history of underestimating the amount of capital required to get the plant over the line to reliable operation.

However, expensive 'snagging' when commissioning new plant of this kind is not entirely unexpected.

IFL, for example, have had a litany of expensive downtime and rebuilds before they finally got their ferrochrome smelters running smoothly.

You either give Woollett and co. the benefit of the doubt and cough up a bit more cash in the expectation that this really is the last tranche (bearing in mind the positive zinc price outlook), or you say enough is enough and stand aside to see how it pans out.

They have achieved a lot, let's not forget, in building Asia's biggest zinc recycling plant.

Worth a read again:

[loganair] 01/4/2014 16:45

The two paragraphs that really worry me are:

There is no certainty that the funds raised in the Placing will be sufficient to satisfy the funding requirements of the Company over the next 12 months, which may include any unforeseen adverse developments relating to equipment, operations, currency or the price of zinc.

There is not yet certainty that the cashflow from KRP will be sufficient to repay or enable the refinancing of the outstanding loan, currently amounting to $15 million, which is due for repayment in February 2015. Whilst the Directors are confident that they will be able to refinance this debt, there is no certainty that this will be achieved on terms at least as favourable as those in relation to the current debt or at all.

[etarip] 01/4/2014 09:25

Rapier686 13 Feb'14 - 11:19 - 1579 of 1596
You were right:

"But they're running on fumes, and I expect at least one more fund raising required before any upside materialises. Those who put up the funds will hold all the cards and I expect it to be lower than the last 15.5p. The 2013 results will be gruesome and I will review my position when I see them and the reaction to them."

[rathkum] 01/4/2014 08:54

And this won't be the last fund raising. Another call in three months at 5p?

Wonder if IFC are participating in the placing this time round. They are already 50% down from the last placing.

[c2b] 01/4/2014 08:21

Sounds like Korea Zinc will be able to pick this up for nothing and make a huge success of it. Nothing small shareholders will be able to do about it.

[smarm] 01/4/2014 08:08

Very sad. Seemed such a spirited idea....

S

[mach100] 01/4/2014 08:02

You will in a few minutes have a chance to get in on the placing price or maybe a discount. Will be top of the leaderboard for losers early doors! Diluted jam tomorrow not even jam tomorrow!

[gingerplant] 01/4/2014 07:51

Perhaps it's an April Fool? :-(

[giant steps] 01/4/2014 07:34

"Placing price of 10 pence per share represents a discount of 37.5 per cent"

Disgraceful.

RNS 1st April 2014

[rathkum] 01/4/2014 07:17

This is total desperation to raise funds at such a hefty discount. It seems to me that this company is almost done. Would I give a further cent to these guys - NO

[mach100] 17/3/2014 17:47

Well not one intraday reversal but two looking at the trades. Fairly persistent selling since 10am put the skids under this. There may be follow on falls tomorrow when holders have digested the news. A start/stop operation and zinc is $1983 per ton on the LME benchmark for asian stock. Might be a copper bottomed recovery play if you can catch the bottom. Will put on my watchlist to see if it clangs when it hits the nadir.

[boonkoh] 17/3/2014 12:22

Its crazy how they still have teething problems. Smacks of operational incompetency. At least, at some point, they have got to run out of issues?

[rathkum] 17/3/2014 12:04

Jam tomorrow. Same old story repeated yet again. Market not in the least impressed with the latest RNS.

[etarip] 04/3/2014 17:11

From last trading update:

"January and February are planned to be full operating months, while in March there will be a planned short stoppage for maintenance."

Can we expect another update soon?

[loganair] 04/3/2014 14:39

The price of Zinc now over the £2,100 per ton mark, sufficient for Zincox to run at a profit.