Zincox Share Discussion Threads

[rivaldo] 18/8/2015 12:32

Zinc plummeting now, down to $1,778 per share price Angel this morning.

[loganair] 17/8/2015 12:02

Listening to a couple of analysis this morning one said he expects Gold to trade in a range of $1,050 to $1,300 for the year ahead with a low of $1,000.

Panmure Gordon are giving an average 2015 price of Gold of $1,160 and for 2016 $1,250. Aluminium, Copper and Nickel prices will all fall while Iron Ore will drop by at least another 30%. On the other hand Zinc will be the only industrial metal whose price will be stable.

[loganair] 14/8/2015 14:06

The Open Offer closed for acceptances at 11.00 a.m. on 13 August 2015. The Company received valid acceptances in respect of 2,854,709 Open Offer Shares and 4,636,369 shares under the Excess Application Facility. The total number of new shares under the Open Offer amounted to 7,491,078 new Ordinary Shares which is approximately 86 per cent. of the new Shares available so that the Company has raised gross proceeds of approximately GBP1.0 million through the Open Offer.

(I see not many took up their shares in the Open Offer, however those that did seem to have applied for another 1 3/4 times in Excess)

The gross proceeds of the Placing and Open Offer comes to approximately GBP3.1 million.

Gautam Dalal (non-executive Director)received 354,861 shares under the Excess Application Facility, but only after all other applications under the Facility had been satisfied, meaning he took up a total of 411,000 under the Open Offer. He also took up a further 468,920 shares in the Placing.

Andrew Wollett CEO, took up 992,556 shares in the Placing.

[cestnous] 11/8/2015 14:21

How big is the Zn deposit that Vedanta broke ground on last week?

[loganair] 11/8/2015 09:25

All metals are down except Tin I think, at least not as badly as the base metals such as Iron Ore which is down over 60%.

Compare to a year ago stocks stored in LSE warehouses are down around 30%, however stocks held in Shanghai, where it is cheaper to hold stock have risen by similar amounts.

At the moment December contracts for Zinc are still managing to hold a little above the $1,900 mark.

As most of Zincox's Zinc goes to just one company, it seems likely that they would have forward contracts that have locked in the price they get rather than selling at the spot price.

Zincox will be thinking of 5 to 10 years in advance rather than too bothered of what todays Zinc spot price is.

And we only have to wait until Friday to know how the Open Offer went and we already know that the 2 directors bought their full entitlement.

[celeritas] 11/8/2015 09:05

Zinc at $1862

[celeritas] 03/8/2015 16:25

I'm not sure about stocks loganair, I'm sure price discrepancies would see stocks move to the LME if the margin was large enough.
Century will completely stop by the end of the year plus you have Lisheen which is cutting production quickly until that too shuts later this year.

China slowing but still growing, I still stand by my opinion its more to do with sympathy with other metals.
Miners are beginning to file for bankruptcy, the strongest will come through this even stronger once the upturn begins.

Whatever, zox must be finding it very hard at the current zinc price.

[rivaldo] 03/8/2015 11:29

Zinc down to $1,889 now per share price Angel this morning.

[loganair] 03/8/2015 09:54

Zox have done their financial calculations at a Zinc price of $2,000 per ton.

Celeritas - Zinc stocks are rising, only falling at LME storages. A report this month from the International Lead and Zinc Study Group showed supply outpacing demand by 143,000 tons in the first five months of 2015.

Many also seem to forget Pig Iron and Lead are also produced during the process. Zox financial calculations are done at a Pig Iron price of $100 per ton and the price has been going South very rapidly. No mention about the price for Lead.

[celeritas] 03/8/2015 09:11

zinc at 1919.
I don't hold much to that article above, China is slowing but still growing.
Zinc like I was saying last week is falling because of other metals. This will end if inventory levels get too low, just a few hundred thousand tonnes to go.
The pace of the draw should pick up a pace nxt year as Century finishes shipping in December.

Whats the break even here, does zox lose at 1919?

[loganair] 02/8/2015 20:38

Zinc falls into bear market as China's woes maul metals:


One of the last bull markets in commodities is over.

Zinc fell into a bear market amid easing supply concerns and signs of slowing demand in China, the world's biggest user. The metal, used in steel auto parts, brass plumbing fixtures and sunscreens, has lost 12 per cent this year, on pace for the biggest annual decline since 2011.

Zinc joins other commodities in bear markets, including aluminium and lead, as China's economy is forecast to expand at the slowest pace since 1990 this year. The Bloomberg Commodity Index headed for its worst month in almost four years amid increasing gluts in metals, grains and energy.

"Construction and auto demand in China isn't great, which is not good for zinc," Vivienne Lloyd, a base metals analyst at Macquarie Group in London, said in a telephone interview. "It's tough times for all the metals. Everything's getting hammered apart from tin, and in terms of how the market is working, there's nothing particularly incredible on the demand side."

Zinc for delivery in three months fell 1.8 per cent to $US1916 a metric ton on the London Metal Exchange. The price is down more than 20 per cent from a three-year closing high of $US2410 on July 28, 2014, meeting the common definition of a bear market.

Prices fell in July for a third straight month, snapping gains from earlier this year. Zinc's fortunes reversed as investors grew concerned that slower demand from China means there will be ample supplies, even as some producers cut back output and shutter aging sites.

A report this month from the International Lead and Zinc Study Group showed supply outpacing demand by 143,000 tons in the first five months of 2015.

[extrader] 30/7/2015 10:42

Hi all,

Anybody got any insight/comment re takeup of the recent placing ?

12.5 million of the 16.11 million shares placed went per RNS to a Cayman Islands based fund, SR Global Fund, who now have 14.52% of ZOX, up from 8.46%.

SR Global looks to have about US$ 1 billion in this particular fund, I've no idea how much FUM overall.

Seems quite a vote of confidence ?

From filings, it looks as though one of the principals of this Fund is a certain Joseph Bannister, whose CV statement reads as follows :

Joe V. Bannister, of 2 The Elms, Gorg Borg, Olivier Street, Sliema SLM 12 Malta. Mr. Bannister has been a Professor of biological chemistry at Cranfield Institute of Technology since 1988, a professor of biochemistry at the University of Malta since 1992 and is currently pro-rector of the University of Malta. He was re-appointed chairman and president of Malta’s regulatory and inward investment body for the financial services sector (Malta Financial Services Centre) in 1999, a post he previously held from 1995 to 1997. In the intervening period he served as chairman of Tri-Med Fund Management Limited (1998 to 1999) and Mid-Med Bank Overseas Limited (1999) (both subsidiaries of Mid-Med Bank Limited) and a consultant to Norwich Union, Gibraltar. From 1990 to 1994 he was chairman of Malta’s industrial inward investment authority (Malta Development Corporation). Prior to this he was a senior research fellow at Oxford University.

I'm assuming that his industrial investment background is more relevant than his academic expertise in biological chemistry......!

Appreciate any comment ! I'm currently minded to 'follow the money' and do a small top-up....

ATB

[celeritas] 28/7/2015 14:09

Maybe, all I know is the price of zinc is still falling along with Copper. Inventories are also falling so something must give at some point, either deliveries come in or zinc stocks will dwindle to very low levels. That should spark zinc rising no matter what copper does.

[loganair] 28/7/2015 12:02

Interestingly I here many professionals say that Dr Zinc is far more an important indicator than Copper and have previous posted a full article on such.

[celeritas] 28/7/2015 11:30

zinc is down in sympathy with the other metals, currently 1932.
The fundamentals for zinc are good but not for others, I expect it to fall until Dr copper makes a return or stocks get severely low.

[loganair] 27/7/2015 17:41

As it is only a few £s I have taken up my full allocation of subscription shares.

[rapier686] 24/7/2015 12:51

There is no doubt the Zn price is important and a sustained fall would be bad news.

But $5m annual savings from the proposed modifications quite significantly shifts the financial landscape - for example it moves the breakeven Zn price by around $200/tn.

[loganair] 24/7/2015 12:37

Zincox business plan is based on a zinc price of $2,000 per ton.

[rivaldo] 24/7/2015 12:27

The zinc price is down to $1,969 now.

[loganair] 23/7/2015 09:03

1 Open Offer Share for every 21 existing Ordinary Shares at 13p per Open Offer share.

The proceeds of the Open Offer, assuming full subscription, will be used to progress work on the next EAFD recycling project in Thailand.

When it comes to the Heat Exchangers - Removal of the heat exchangers and installation of coal injection technology to augment the furnace’s energy requirements is estimated to cost US$2.2, which was funded by the share Placing earlier in the month, but will cut out annual maintenance costs of around US$2.5m.

These changes remove the throughput constraint and the company expects to accrue a benefit “of at least US$880,000 per annum” on its energy requirements and debottlenecking of the throughput is “expected to have annual benefits of over US$5m.”

Conclusion: ZincOx’s perseverance in resolving the performance of its Korean plant now seems to be paying off and the additional funds should help position the company to roll out its technology to the next project.

[cestnous] 23/7/2015 08:41

Exactly johnyo. The ceo's last interview was full of praise for the plant becoming 'reliable' and more profits from producing Zn0. What we actually got is another heat exchanger replacement and a a fund raising, followed by a premature new plant which will inevitably lead to more fundraising and is why I am out for the moment. They should walk before they try to run

[johnyo] 23/7/2015 07:26

Without doubt there's great potential here, I've been keeping an eye on this share for a while. Would have liked to see the plant running without problems for a year & address some of their debt, before expansion and more share dilution

[loganair] 19/7/2015 17:26

boon - Zincox say that they hope to find a partner who will pay for the new plant. The prelim is only just to show a prospective partner how the new plant will operate.

[boonkoh] 19/7/2015 16:43

This will be the first of several fundraising. Any expansion to new plants in other countries will require more equity. Last weeks fundraising is only enough for existing plant capex and some prelim new plant expenditure.

[loganair] 18/7/2015 13:12

Personally I may pick up a few more ZOX when the Open Offer comes along as I am becoming more and more positive about their prospects for the medium to long term future as most of ZOX's short term difficulties seem to have been successfully sorted out.