Zincox Share Discussion Threads

[karmastuartra] 29/12/2015 19:49

People,zox is no longer an Investment punt.i sold out Last week making a modest 10%.better than a loss!

[solomon15] 29/12/2015 18:34

tidy - Can you work out what their 10% (9.5%) is worth price wise?

[loganair] 29/12/2015 18:32

Solomon, the thing is, is ZOX able to hold out until the Zinc price recovers?

[solomon15] 29/12/2015 18:21

Nickel, zinc seen leading world metal prices recovery.

MINERS can look forward to better mid-term prospects as prices of metals in the world market are seen to recover by 2019, experts said at the Mining Philippines 2015, a three-day international conference organized by the Chamber of Mines of the Philippines.
Mining and metals market expert Julia Ralph said at the conference that the price recovery would be led by base metals, such as gold, silver, platinum, aluminum, copper, lead, nickel, tin and zinc.

Zinc and nickel will recover very strongly while lead and copper will have a mild improvement, she said.

hxxp://business.inquirer.net/199348/nickel-zinc-seen-leading-world-metal-prices-recovery

[loganair] 29/12/2015 17:21

The Zinc futures contract surged almost 3 per cent on Tuesday session. This rally has decisively breached the 21-day moving average and the medium-term down trend-line resistances showing signs of bullish momentum. Moreover, the contract is reversing higher after taking support from its long-term base zone. This reversal is due to speculators building-up fresh positions in the spot market on the back of improved demand. Technically the commodity can sustain the recent bounce and take the price higher in the coming weeks, providing an opportunity for traders with a medium-term horizon to go long at current levels.

[loganair] 29/12/2015 17:17

The KRP plant is currently closed to carry out a repair to the evaporative cooler and production is expected to resume on the 7th January.

During the transition period, outstanding invoices owed by KRP for 2015, current remediation costs and operating losses are expected to amount to about US$3.4 million and this will be covered by Korea Zinc and be treated as a loan to KRP. There will be no recourse to the Company for this loan.

In view of the current and negative short term outlook for the price of zinc, KRP may continue to suffer losses in the near term.

If Korea Zinc continues to support the operation by injecting cash and if ZincOx is unable to provide its share of support, such injections may be treated as loans or may be capitalized (including the above USD3.4m loan) in which case ZincOx's interest in KRP would be diluted according to a formula based on the imputed value of the company as described above.

For example, if the US$3.4m required during the transition period were to be capitalized, it would have the effect of reducing the Company's interest in KRP from 10 per cent. to 9.5 per cent.

Since the security situation in Yemen is extremely uncertain there is no prospect of development in the near future and so no value can be ascribed to this interest.

The losses attributable to KRP during the six months to 30 June 2015 amounted to US$3.9 million accumulated losses at 30 June 2015 being US$48.8 million. KRP produced about 50,000t of zinc concentrate during 2015 which generated about US$35 million in revenue. The carrying value of the assets in the balance sheet are based on the cost as written down and at 30 June 2015 amounted to US$117.0 million.

[paul the octopus] 29/12/2015 10:35

get real, eat snickers, u not urself when u high and dry

[loganair] 29/12/2015 09:18

Over the past 10 days the price of Zinc has edged higher from their low of around $1,460 towards the $1,550 per ton mark with the 3-month price now being $1,554 per ton.

[loganair] 29/12/2015 09:00

The firm has around £240,000 in cash and a profit sharing interest in the Jabali zinc deposit in Yemen as well as industrial land in the US and Turkey.

No value is given to the asset in Yemen, while the land in Turkey is worth £167,000. The package in America carries a price tag of £4mln but provides security for a bond due next July.

With cash tight, the company is cutting costs to the bone and the board has waived its pay.

It is also looking at “fundraising alternatives” as it sees potential value in its 10% stake in the Korea plant if zinc prices move. The technology behind the operation also worth something.

Chairman Rod Beddows said "We are obviously disappointed that we were unable to secure additional funding to retain 100% interest in KRP.

“However, our ongoing interest in the Korean recycling plant is significant and may act as a building block for the company and a source of cash if the zinc price returns to more sustainable levels.

“The company has proven an exciting new technology and we look forward to potential partnerships for the development of new projects."





The company said it planned to continue trading as there are "parties interested" in developing others plants using its proprietary core technology, and as the 10% remaining share in the Korean business is still a valuable asset.

"If the zinc price returns to the level seen over the past four years, it could provide a regular cashflow that could be used for the generation of new projects and to cover overheads," it said.

The board said they will announce their new plans soon, which could include raising cash to build a new business or winding down the business and selling remaining assets and returning cash to shareholders.

[loganair] 29/12/2015 08:56

In my good opinion a good deal for the share holders as we now own 10% of a company that is debt free instead of 100% of a company that has $57.1mln of debt plus interest on that debt which would have cost ZOX many more millions of dollars.

[paul the octopus] 29/12/2015 08:48

keep singing before it gets booted offPaul the Octopus - 09 Dec 2015 - 14:50 - 317 of 346 -agm 18/12 to vote, even if the vote pass they got just 5 days (net) all in all to sort out the funding of £5mil before they lose 90% on 31/12, go figure...

[tidy 2] 29/12/2015 08:43

And the casino goes on.

[eezymunny] 29/12/2015 08:37

No tidy 2

They say "Following the transfer of 90 per cent. of the shares in ZincOx Korea, in addition to its residual 10 per cent. shareholding in ZincOx Korea and its technology "know-how", ZincOx will have net cash of approximately £240,000 and its only other notable assets will be its industrial land in the USA and Turkey and a profit sharing interest in the Jabali zinc deposit in Yemen. Since the security situation in Yemen is extremely uncertain there is no prospect of development in the near future and so no value can be ascribed to this interest. The Board estimates that the land in the USA has a value of approximately £167,000, and that in Turkey to be approximately £4 million and both parcels of land are on the market. The Turkish land, however, provides security against a bond amounting to £3.78 million that is due for redemption in July 2016 and, after the payment of costs and redemption of the bond, shareholders should not expect there to be significant additional cash generated by the sale of this property."

So they have/will have in the region of £400k. Your £7m cash figure is utter nonsense. Please don't post nonsense (you know what happens next).

[tidy 2] 29/12/2015 08:25

Yes Sid then left with a shell and circa £7m cash. About 3.7pps

[smarm] 29/12/2015 08:21

Wake up. They have just lost the business.

S

[sidjameslaugh] 29/12/2015 08:20

Roger Tidy. I actually see some value here though, and as mentioned potential for remaining 10% buy out.

[tidy 2] 29/12/2015 08:19

No that's my post Sid

[sidjameslaugh] 29/12/2015 08:16

So you are cut and pasting from LSE now.... Top job.

[tiger noble] 29/12/2015 08:15

I would imagine the Korean company will make an offer for the remaining 10 percent over the next few weeks. Probably around 6 or 7 million pounds.

[tidy 2] 29/12/2015 08:13

Debt free. 50m debt wiped off and left cash positive with £7m stake in producing asset.

[tidy 2] 29/12/2015 08:06

Not bad deal then. 200k cash & now Debt free (the big one) and £7m investment producing.