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ZOX Zincox Res.

0.45
0.00 (0.00%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Zincox Res. LSE:ZOX London Ordinary Share GB0031124638 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 0.45 - 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Zincox Share Discussion Threads

Showing 2226 to 2246 of 2475 messages
Chat Pages: 99  98  97  96  95  94  93  92  91  90  89  88  Older
DateSubjectAuthorDiscuss
22/12/2015
09:15
4p very much on the cards That's only £5m M/C
bckttsim
22/12/2015
08:43
Correction to 4p on the cards here IMO now
tidy 2
22/12/2015
08:37
Well done here again !!!
tidy 2
22/12/2015
08:06
Been in auction !
oilbuy
21/12/2015
21:02
excellent write up h20water
sigora
21/12/2015
20:50
LSE bb:

Niki7777
Posts: 232


Analysis

An investor in ZOX, like myself, needs to consider the following attributes. Here I enclose my own opinions. Yours may differ.

1. Zinc price.
ZOX relies on the price of zinc concentrate, which is linked to the weekly zinc spot price. The zinc price has been in decline since beginning of 2015 Q4. Zinc, however, has a history of 3-6 month cycle periodic decline and rally. Some analysts (Base Metals) have speculated the beginning of a new rally in zinc spot price starting in late Q4 2015 / Q1 2016, with an overall bullish trend from 2011 onwards. The price of zinc needs to be above $1650 USD per tonne in 2016 in order to maintain commercial viability, in conjunction with interim funding. However, the zinc spot price may exceed $1900 USD by start of Q3 2016, to coincide with reduced mining operation at Century mine, Australia, and gradual slow down of production at Skorpion mine in Namibia for its last years of serviceability.

2. China
The Chinese industrial base accounts for approx 45% of worldwide Zinc consumption. Although zinc stocks in Europe have climbed due to a slow down since Q3 2015, Chinese demand was 3.4% increased this year, and will likely remain bullish on consumption in 2016 as global supply downturns slightly.

3. Zinc Oxide Market
The ZnO market was predicted by to be $1.4 billion USD (including consumer electronics) for 2015 by various sources in 2010. The forecast for 2020 is likely to be in the area of $4.2 billion USD due to increased consumption for wide ranging markets, including pharmaceuticals, ceramics and industrial chemicals. Again, a bullish outlook for companies working with zinc concentrate production.

4. Assets
If the company is not able to secure alternative funding through shares or loans, it will transfer 90% equity in the Korean operation to Korea Zinc, thereby retaining a 10% interest. The first shipment of EAFD (electric arc furnace dust) with a zinc purity of 18-27% has been delivered to KRP, with near-full functionality at the plant now appearing to be restored after a Q4 2015 halt. As indicated in the Half Yearly report, the recovery scale is over 90% of target, with peak efficiency at 92% reached circa November thereafter. KRP is a cash cow, generating $22.4 million USD for H1 2015 compared to $17.5 million USD for same time in 2014. Even in the worst case scenario, a 10% interest in KRP after a default will still yield around 2.25 million USD per six months, with no or little associated running costs (due to Korean Zinc taking 90% interest). I am therefore very bullish on this issue, as a sharp rise in Q1 2016 zinc spot price could easily near-double the revenues stated here.

5. Funding
If ZOX funding by share issue, then expect a modest dilution which will likely be heavily bought into due to the overall strategic benefits of a rising zinc price and consumption post Q1 2016 (assumed). There are currently only 190 million ordinary shares in issue, so balance the issue of dilution against the benefit of retaining KRP 100% stake and you will likely come up with an increased MCap regardless due to the efficiency and proven revenue output of KRP at the 2015 low zinc price, which still managed a 28% increased in revenue like-for-like against H1 2014.

The alternative is a loan arrangement. If ZOX receives a loan, this could be converted to shares, or be remedied in cash. It doesn't really matter if ZOX gets to keep a large majority interest of the KRP asset.

6. Market sentiment

On 21/12/2015, the LSE saw a large rise in share price, sustained and without issue of a disclaimer by RNS from the company, indicating that the share price is potentially explainable by the BOD. I am bullish into Q1 2016. I anticipate that any share issue to raise funds will be bought into aggressively, if a situation is presented to the market where the KRP stake is safeguarded by funding.

All own opinion, do your own research

h2owater
21/12/2015
14:10
bis bro you got mail
sigora
21/12/2015
14:07
trimmed small here.
brahmsnliszt
21/12/2015
14:06
Sig topslice
bismilallah1
21/12/2015
14:01
and there she blows
sigora
21/12/2015
14:00
L2 is 1.5/1.55
tidy 2
21/12/2015
13:59
Yep premiums now heading for 100%At least you made a profit tidy2Will hang on a bit longer !
oilbuy
21/12/2015
13:59
1.49p been hit now tick up due
sigora
21/12/2015
13:58
don't mind me - keep on going haha - glass is always half empty when it comes to shares for me, especially tiddlers. Always defensive, so anything more is a bonus.
brahmsnliszt
21/12/2015
13:57
This is a beauty. Trust me to sell too early lol. Looks like its rapid fire on the ask. Multi bag guys.
tidy 2
21/12/2015
13:54
paying well over now
sigora
21/12/2015
13:53
buy after buy the damn gonna burst soonest
sigora
21/12/2015
13:50
1.40 res which I think will cap things for today.
brahmsnliszt
21/12/2015
13:37
will do mate
sigora
21/12/2015
13:27
Sig stick couple of £s in Sma
bismilallah1
21/12/2015
12:58
He says it's a pump and dump when he thinks he has missed the boat but when he buys in he does the pumping!
goodbloke1
Chat Pages: 99  98  97  96  95  94  93  92  91  90  89  88  Older

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