Zincox Share Discussion Threads

[etarip] 05/11/2017 13:57

Article on Zinc in the Investors Chronicle this week

[ccnp] 12/10/2017 14:09

Actually, I just found it and I am wrong. £1,575 was break even (subject to a whatever the accountants do with the books).

And I put money on it being their track record that meant no-one was lending. Not the banks. Not the partner. And definitely not the punters. All sick and tired of dilution and delay.

[loganair] 12/10/2017 13:59

My understanding at the time the plant need Zinc to be at around $1,900 per ton to break even. With the new proposal this would come down to around $1,500 per ton. Sadly however Zincox didn't have the funds to pay for the proposal.

[loganair] 12/10/2017 12:56

It seems to me what happened was the price of Zinc crashed to around $1,400 per ton just at the wrong time for Zincox and Korean Zinc took advantage of the situation to get the plant on the cheap. With in 8 months the price of Zinc had risen to over $2,000 where the plant became viable and profitable again.

Today the price of Zinc stands at $3,305 per ton.

[loganair] 12/10/2017 09:26

Cash - This report reads very positively to me.

[loganair] 12/10/2017 09:18

Half Year Results:

The Group reports a profit from continuing operations of US$2.2 million compared with a loss from continuing operations of US$5.2 million for the same period last year.

The Board believes that the Group has sufficient liquidity to continue as a going
concern, and to continue in operational existence for the twelve months from the date of this report.

[loganair] 12/10/2017 09:07

ZincOx Resources plc is pleased to announce that it has disposed of 41,212 square metres of its land holding in the Aliaga Heavy Industrial Zone, for the sum of TRY 14,352,136 (US$4 million), which will be subject to Turkish taxes. The Company is now seeking advice on the most efficient manner for this amount to be repatriated.

The Group retains a land holding of 9,638 square metres, which continues to be marketed.

Andrew Woollett, ZincOx’s CEO, said “I am pleased that we have been able to realise the sale of this land at a significant premium to its carrying value and it gives the Company the opportunity to more actively pursue a number of projects”.

[cashpo1nt] 11/10/2017 22:05

For details of new venture see hxxp://zincox.com/wp-content/uploads/2017/10/246796-Zincox-Circular-web.pdf

Our company is proposing to take a share (costing750GBP) in the development of a Zambian copper mine.. The new company expect to list in 12 months and our directors are looking to make a sizeable return on the investment -looks as if $10m or so is the aim.

In the meantime they will continue to pursue the Vietnam project but seem pessimistic about being able to raise enough cash to bring it to fruition in the short term. So they seem to say, why not raise a bit more money through this new opportunity.

The people involved have convincing CVs and the Directors have "skin in the game".

I wonder what wiser and more experienced heads than mine make of it?

[loganair] 15/5/2017 12:00

No doubt many of you will have picked up the latest RNS from the company stating that they have put in place a share trading facility following their AIM cancellation (link below).

hxxp://zincox.com/wp-content/uploads/2017/04/170427-Delisting-from-Aim-and-joining-AssetMatch-FINAL.pdf

We are certainly here to help, so please feel free to contact us on Tel: [phone] or alternatively [e-mail] should you need any further assistance.

If you or anyone else for that matter needs any more detail regarding ZincOx then feel free to get in touch.

[benweaver1] 02/5/2017 16:28

Good afternoon,

No doubt many of you will have picked up the latest RNS from the company stating that they have put in place a share trading facility following their AIM cancellation (link below).



We are certainly here to help, so please feel free to contact us on Tel: [phone] or alternatively [e-mail] should you need any further assistance.

Kind regards,

Ben Weaver

[etarip] 31/3/2017 08:28

In intensive care but not dead yet.

[etarip] 28/3/2017 10:31

Suspended 31.10.16

Within six months of becoming an AIM Rule 15 cash shell, the AIM company must make
an acquisition or acquisitions which constitutes a reverse takeover under rule 14. For the purposes of this rule only, becoming an investing company pursuant to rule 8 (including the associated raising of funds as specified in rule 8) will be treated as a reverse takeover and the provisions of rule 14 will apply including the requirement to publish an admission document.

Where an AIM company became an investing company (pursuant to rule 15) prior to 1
January 2016, the requirements of rule 15 set out in the AIM Rules for Companies (May 2014) will continue to apply. Accordingly, if such a company does not make an acquisition or acquisitions which constitutes a reverse takeover under rule 14 or otherwise fails to implement its investing policy to the satisfaction of the Exchange within twelve months of becoming an investing company in accordance with that rule, the Exchange will suspend trading in the AIM securities pursuant to rule 40.

[loganair] 09/2/2017 09:57

Glencore reaffirms 2017 production guidance; no hint as to when zinc supply will come back.

Glencore reaffirmed its guidance for metal production in 2017 in its annual report on Thursday February 2, with the company failing to signal as to when it would bring back its shuttered zinc capacity.

The company suspended 500,000tpy in 2015 amid weak zinc prices, but the threat of restarts looms over the market. The three-month zinc price on the LME was recently at $2,869 per tonne, down $11. Zinc was the standout performer last year – at one point it attempted to take out the $3,000 per tonne level. While it failed to breach this, a low-high of more than $1,500 per tonne is impressive. Zinc production guidance for 2017 was placed at 1,190,000 tonnes, up around 25,000 tonnes on the previous year. The company hinted.

[loganair] 02/2/2017 10:13

Spot price for Zinc continues to rise standing at $2,847 per ton.

[loganair] 02/2/2017 09:51

The zinc price is on the rise, but which companies are set to benefit the most? - By Alistair Ford:


Zinc is back in fashion and zinc companies are on the march. But which ones are worth a look?


Balkan Zinc looks set to be the first zinc miner to list in London - if not quite in living memory, then at least in a long, long while.

For a long time, zinc was the metal perennially out of favour. Even during the height of the mining boom it lagged, and promoters around town found the zinc slog harder than almost any other.

One major zinc producer, Nyrstar, pretty much left the mining business altogether. And in February 2016 Horsehead Holding Corp (OTCMKTS:ZINCQ), a billion dollar zinc recycling company, filed for Chapter 11 protection in the US.

But things are changing fast.

The imminent listing of Balkan Zinc, which looks set to come to the market in mid-February, is one sign of that. But there are other signs too.

Ferrum Crescent (LON:FCR) has lately got into zinc, Hannan Metals (CVE:HAN) has acquired the Kilbricken project in Ireland, ZincOx (LON:ZOX) is still alive, just, and signing new deals, while Avrupa (CVE:AVU) is actively looking for deals on the Iberian pyrite belt to complement its existing position.

Meanwhile, Turkish conglomerates are nosing about looking for opportunities, and other companies too are looking to take positions in the metal.

Why is this?

Simple - after long years when supply was easily equal to demand, zinc is now slipping into deficit.

Zinc stocks, as measured by LME inventories, fell in early January, and stood at 419,800 tonnes. These are levels not seen since the end of the last mining boom, and the lack of inventory has been accompanied by a corresponding rise in the price which, at the current US$1.23 per pound, is higher than it’s been since 2008.

The first sign of this recovery was an increasing interest in zinc EFTs, for example the ETFS Commodity Securities Limited ETF (LON:ZINC), which is now trading at a five year high, but which first really moved at the end of 2015.

And by that time, many canny companies had already taken significant positions. Thus Hannan and Balkan are already in place with exploration and development projects. The same is true of Zinc of Ireland (ASX:ZMI), which has several projects in Ireland, Rathdowney Resources (CVE:RTH), which has just announced a C$5mln placing, BRM Group(LON:BMR), which has just issued a positive update on its Zambian projects, and Ironbark zinc (ASX:IBG), which is moving forward with its projects in Greenland.

On the North American side, the zinc companies have become increasingly active too. Thus Nevada Zinc (CVE:NZN) is attracting interest in its Lone Mountain project, including from out of Europe, Arizona Mining (TSE:AZ) is moving ahead with the Taylor deposit and Callinex Mines (CVE:CNX) has hit a three year high of C$0.65 on the strength of exploration success at Pine Bay in Manitoba.

This latter project is situated adjacent to the famous Flin Flon project of Hudbay Minerals (TSE:HBM), which is now boosting production to meet the new market strength. Hudbay shares have more than tripled in value over the past year.

At the top end of the zinc market, Glencore (LON:GLEN) continues to be dominant, while First Quantum (TSE:FM) and Boliden (TSE:BLS) also provide major contributions to global supply.

Nevertheless, that supply is diminishing as major Irish and African mines run down, and new mines look to be slow in coming on stream.

To be sure, Vast Resources PLC (LON:VAST) has recently started production at Manaila in Romania, and other of the juniors may also add a small contributions in due course, in particular mom and pop operations out of China.

But the central dynamic remains the same.

And broker RFC Ambrian spells it out succinctly: “The last three years have seen significant production capacity reductions through mine closures, including Vedanta’s Lisheen mine and MMG’s Century mine (which itself accounted for approximately 4% of global production.”

Some of this production fall has been a tactical or strategic response to weaker pricing. But by no means all. RFC Ambrian also cites “the natural end of older mines” as a significant cause.

And the really big companies are not at the moment interested in redressing the looming deficit. “Zinc is not a strategic focus for the major mining companies, suggesting that the availability of capital for large-scale new projects will be limited,” says Ambrian.

Which brings us back to the smaller players.

As investors search around for ideas on how to play zinc, and as the mining sector as a whole comes back into favour on the back of the Trump stimulus, the zinc juniors are likely to be in increasing demand.

Old projects will start to appear on the radar again.

One such might be the Black Angel zinc mine in Greenland, now owned by private company ARC Exploration. Once-upon-a-time this was held by Angus & Ross, Aim’s proxy zinc play. But the project ran into difficulties and was taken into private hands.

Work has not stopped though. Eight weeks of field activities in the summer of 2016 involved ground geophysics and induced polarisation work conducted by the well-known boutique Irish consultancy Aurum Exploration Services. Then, in late June, 11 new holes were drilled, a number of which intersected mineralisation.

Meanwhile, Anglesey Mining (LON:AYM) still has its large Parys polymetallic project in Wales, and this may get reactivated in the face of further zinc price strength.

Across the water in Ireland, Connemara Mining (LON:CON) is still slip-streaming in the exploration wake of its major partner Teck (NYSE:TECK), while Lundin (TSE:LUN) has now departed and left the field open for Hannan.

Other juniors that are worth a look are: Inca Minerals (ASX:ICG), which has the Riqueza and Cerro Rayas zinc-silver-lead projects in Peru, Zincore Metals Inc (TSE:ZNC), which also has projects in Peru, Trevali Mining, which (TSE:TV) has operations in New Brunswick and a mine in Peru, and ScoZinc Mining Ltd (CVE:SZM) which owns zinc exploration in Nova Scotia.

Also on the radar: Red Crescent Resources (TSE:RCB), which has projects in Turkey, InZinc (CVE:IZN), which has the Indy zinc project in British Columbia and the West Desert project in Utah, Energia Minerals Limited (ASX:EMX), which has the Gorno underground zinc project in the north of Italy, and Consolidated Zinc (ASX:CZL), with its assets in Mexico.

[loganair] 12/1/2017 16:55

The book value was US$5.8mln, so Zincox will take a US$2mln profit on the sale.
picture of recycling plant Zinc prices have soared in recent months

ZincOx Resources plc (LON:ZOX) drawn a line under its Korean zinc operation with the sale of its remaining stake.

Korea Zinc Corporation (KZC), its former partner at the plant, is buying Zincox’s stake for US$7.95mln.

The book value was US$5.8mln, so Zincox will take a US$2mln profit on the sale.

KZC has agreed to pay a total of $7.95m in two tranches for the remaining interest in ZOC, of which $7m is to be paid within three weeks and the balance once KZC has completed various procedural requirements in Korea.

Cash received will also clear US$5mln of its outstanding debts and leave some money to fund new zinc recycling projects it is working on.

Zincox is still working with KZC and in November the pair unveiled plans for a new zinc recycling plant in Vietnam that will use the Rotary Hearth Furnace (RHF) technology they developed in Korea.

Andrew Woollett, ZincOx's chief executive, said: "The sale will enable the Company to pay off all its debt and provide sufficient funds for us to work on new and exciting major projects around which the Company can be rebuilt"

Broker share price Angel added: “The Korean Recycling Plant is now ancient history but with zinc prices so very much higher and management more expert than before, the next incarnation should see a better outcome.”

[still waiting] 12/1/2017 14:24

in due course by the looks of it.

[etarip] 12/1/2017 14:20

Todays RNS : Sale of Remaining Interest in KRP

Is this a phoenix event?

[loganair] 19/12/2016 16:56

Spot price for Zinc now holding well above $2,700 as high at $2,753 per ton will hopefully mean that ZOX will not be required to sell down any more of their small percentage holding in the Korean Zinc Recycling plant.

[loganair] 25/11/2016 10:07

ZincOx (LON:ZOX) Suspended – MOU signed with Korea Zinc on joint design and development of new recycling plant in Vietnam

ZincOx is looking to remerge from the ‘ashes’ or should we say the ‘Electric Arc Furnace Dust’ to develop a new recycling plant in Vietnam.

The press release is short on technical details on the project but does tell us that it’s a 51:49 joint venture in favour of Korea Zinc and that the ‘Definitive Development Study’ is expected to cost about $2.5m. If this cost rises to >$3m then ZincOx’s interest will be diluted proportionately though ZincOx will be able to buy back its interest to 49% in the following six months.

The new Vietnam recycling plant will be based on ZincOx’s developed Rotary Hearth Furnace technology and with capacity to treat 100,000tpa of EAFD. We guess this could result in 30,000t of high quality zinc oxide (80% zn) production worth around twice as much as zinc concentrate plus some by-product iron.

This should lead to a significant increase in sales for a relatively modest increase in overall operating cost leading to a substantial uplift in margin, value and profit compared with the last plant built. We believe the ZincOx plant built in Korea is now working well and enjoying the benefits of the significant uplift in zinc prices since Korea Zinc took control of 91.3% of the plant as part of a financial restructuring during the prolonged commissioning process.

ZincOx shares were suspended on 28th October and must requote within six months to avert delisting.

Debt: ZincOx is carrying £3.78m of corporate loan notes with interest accruing at 10%pa from 1st August 2016 and are due for repayment in January 2018.

Assets: ZincOx retains an 8.7% interest in the Korea Recycling Plant which it designed and built. Very sadly extended plant commissioning combined with prevailing low zinc prices allowed Korea Zinc to take control and majority ownership of the plant just ahead of a recent and sustained rise in Zinc prices.

The value of Zincox’s stake in Korean Zinc Recycling Plant should now be substantially more than the last implied value of $6.3m.

ZincOx also owns what is described as a valuable plot of industrial land in Turkey.

Conclusion: It’s good to see ZincOx re-emerge from losing control of its Korea Zinc Plant. It is interesting to note that Korea Zinc are still working as cooperating partners with the ZincOx team. Korea Zinc must respect the skill and knowhow of the ZincOx team and must also need to utilise these skills to advance with their next EAFD project.