Zincox Share Discussion Threads

[cashpo1nt] 04/2/2015 12:00

Encouraging buying and upwards move this morning. Anyone know why? Zinc price up but not spectacular.

[luckymouse] 03/2/2015 12:00

Forming a big bowl?

[quilarvium] 27/1/2015 20:59

New to this game.Have been following this for the last 12 months after a tip.Didn't buy though, is it about to turn at this level?

[loganair] 23/1/2015 14:42

etrip - I wouldn't say the teething troubles are all over, rather belief in that there will be no more significant problems causing long shut downs. I do not normally make predictions on the share price, however as long as there are no more significant problems I can easily see ZOX share price reaching 15p to 30p during 2015 and 30p to 50p 2016.

[etarip] 23/1/2015 14:33

the share price has been moving up after the RNS so PIs seem to be believing the teething troubles are over.

[rapier686] 20/1/2015 14:00

Certainly not at the end of problems.

The presentation reveals that heat exchanger issues are back "The refractory degrades over time and will need maintenance every 3-4 months" and they're thinking of ripping them out and doing something else involving coal to recover waste heat instead.

[mostyn] 20/1/2015 12:40

loganair,

Like you I thought this was a pretty good update. I recently spoke to the company and my understanding re: the strategic investor agrees with yours.

It's understandable there is a focus on the negative (and there have been plenty of negatives over the last few months) but this update looked quite good.

* 30 days continuous production, so if all goes well to end Jan it should be a record month. 15,200 tons in last 30 days - a record.

* From RNS: "The underlying performance of the plant is continuing to improve". - The Jan 2015 presentation on their website further highlights this.

* From RNS: "Notwithstanding the lower than expected throughput for December, the KRP generated a positive EBITDA1 of over US$185,000. This was for December only.

The key is obviously continuous production, but it would be a mistake to assume this will never happen. I don't think they would be considering trying to get a strategic investor interested if they couldn't demonstrate a working plant.

My guess (and it's only a guess) is that they are very nearly at the end (or even at the end) of any problems. If that's the case the share price should soon reflect this.

[giant steps] 20/1/2015 11:37

It's a catalogue of problem after problem,
too many niggles = downtime = no rewards for shareholders

[loganair] 20/1/2015 11:18

Personally I thought this was a pretty good update which I'm happy with.

I also very much doubt that Zincox will be returning to its share holders for more funds. My understanding is that any new funds will be for a specific project will be raised from an institutional or large investor and once and only once the new project is up an running this investor(s) will then be given shares in the enlarged company in return for the loan.

[rathkum] 20/1/2015 10:33

Postponing the inevitable - Another fund raising down the road hence why the share price keeps sagging.

[rapier686] 20/1/2015 10:22

Well now we have confirmation that silence should be interpreted as bad news.
Problem in Dec, so the promised early Jan update gets deferred until there's been 30 days continuous operation to sweeten the pill.

[giant steps] 20/1/2015 07:22

Minor problems persist vs marginal play - uncomfortable

20JAN2015

[mostyn] 13/1/2015 12:57

Ticking very slightly better. If we get a decent update and there seems some prospect of uninterrupted production, this will look very cheap. I also thought the same when they were around 15p!

[etarip] 11/1/2015 15:47

RNS Number : 7859Y

ZincOx Resources PLC

4 December 2014

A further update on the performance of the plant will be made in early January 2015.

Should be soon. With net tangible assets at 40p a share even if the process fails (which I do not think will happen) there should be more than 6.5p a share.

[loganair] 10/1/2015 15:48

Aluminium, zinc and nickel becoming the new favourites:

The world is running down in zinc supplies, after four years of surpluses from 2008. A deficit of more than 700,000 tonnes is expected for 2014 and Credit Suisse "cannot see an end".

Prices should tighten to $US1.18 a pound in 2015, travelling towards a peak of $US1.36 a pound in 2016, from US98 cents in 2014.

Credit Suisse analyst Paul ­McTaggart says higher prices are a necessity for the zinc and lead markets to rebalance.

"Right now, the deficit is in zinc ­refining," Mr McTaggart wrote in a note to clients.

"Zinc concentrate currently remains in surplus because insufficient ­quantities are being converted to metal . . . Profitability has to be inserted into the mine and refinery sector to ­stimulate activity."

Deutsche Bank is less bullish, ­tipping zinc will rise to $US1.03 this year, $US1.12 by 2016 and peak at $US1.23 in 2019.

[loganair] 03/1/2015 12:43

Capital Economics - 'Oil prices to remain lower, but industrial and precious metals prices to recover. Brent crude has found support at around $60 per barrel, as we had anticipated, but ample supply will prevent a strong rebound. Nonetheless, the boost to global activity should lift metals prices in 2015, so many commodity exporters could still be better off, as well as emerging economies who are large net energy importers.'

[rathkum] 03/1/2015 10:51

Tips for 2015:

ZincOx Resources (LON:ZOX) – we expect the Korea EAFD zinc recycling facility to have worked through its commissioning issues and to have a better year

*SP Angel either act as Nomad, broker or both to these companies

[boonkoh] 22/12/2014 11:02

Just had a thought. Low oil prices must be good for ZOX. Plant must use quite a bit of energy right?

[loganair] 19/12/2014 17:34

“Base metals were a ‘bright’ spot in 2014—largely ignored by equity markets and are among our ‘picks’ for investors in 2015,” observed Scotiabank economist Patricia Mohr in the latest edition of the Scotiabank Commodity Price Index published Thursday.

“LME nickel and zinc ranked No. 3 and 5 within the ‘Top Five’ best-performing commodities of 2014,” she said, “with price gains of 19.8% and 11.6% respectively in the year through December 15, 2014.”

“However, a focus by investors on copper, widely expected to edge down in 2015 alongside ongoing mine expansion, seems to have taken the shine away from these metals in the equity markets,” Mohr suggested.

‘Picks’ for 2015

Mohr forecasts average prices of $1,267/oz gold, $1.25/lb ($2,500/ton) zinc, $9/lb nickel, $3/lb copper, and $42/lb uranium in 2015.

Zinc and nickel are Mohr’s top picks for investors in 2015.

In her analysis, Mohr said zinc prices strengthened in the second half of this year, averaging US$1.03/lb (a little over $2,000/ton), “with investors and commodity funds expecting zinc concentrates to move into a supply-side deficit by 2016 alongside significant depletion. Century—the world’s third-biggest zinc mine—is expected to close in 2015:Q3 and Lisheen in Eire by late 2015 or early 2016.”

“In the first sign of a response by mining companies to the coming shortfall in zinc, Vedanta has announced its intention to proceed with developing the Gamsberg zinc mine in South Africa (250,000 t/a by 2018),” observed Mohr. “We expect interest in ‘junior mining projects’ in zinc to intensify within several years.”

[loganair] 10/12/2014 15:19

Business Line - Going by the estimates of the International Lead and Zinc Study Group, the world zinc market would end the year in a deficit of 400,000 tonnes.

Over 2015 and 2016, this deficit can widen further by well over 25 per cent. This suggests that, going forward, zinc prices will have to push higher. Only this will create incentive for mining companies to make fresh investments.

On balance, one can expect zinc prices to rise by over 10 per cent from the current levels and reach $2,500/t in 2015 and possibly $2,700/t and above by 2016.

[etarip] 04/12/2014 08:36

RNS sounds much more confident with next RNS in early January.

[rathkum] 24/11/2014 21:14

On the other hand the share price is indication a fund raising exercise at 6p or under. That sadly is my hunch