Zirax Share Discussion Threads

[masurenguy] 30/6/2009 17:18

The lower price could enable a potentially cheap MBO but they could delist from AIM without buying any external PI shares - they would just remain shareholders in an unquoted company with virtually no market for their shares.

[whonosewhy] 30/6/2009 17:14

On reflection I think they deliberately hold on as long as possible trying to resolve this Russian Bank situation.

You can imagine a daily phone call to the Bank -

"Can we draw our money out please?"

Answer - "Not today"

"Ok Then"

Repeat every day until you realise you have to release the results that say "Houston we have a problem"

I've sold mine today so I hope this does not sound like I'm talking out of my pocket nursing my loss.

I will be keeping an eye open here though because I still think long term this company could be successful.

But I can see a drift lower from where we are now and if I want to get back in I think I will have chance at a lower price.

My nagging feeling previously was that the management could take the company back private and off AIM - a cynic might say this sort of set of results brings the price down meaning they could actually take it private for a cheaper price.

[koolio] 30/6/2009 11:17

I'm just happy they got the figures out before the deadline.

[whonosewhy] 30/6/2009 08:54

Well there you have it and I feel very very let down.

The delay in results could be the result of trying to resolve the issue with funds deposited with a Russian Bank which now appears reluctant to give the cash back!

I will read some more but not many redeeming features that I can see on first glance and I would suggest the falling price is now obviously connected to people knowing about the cash problem.

Disappointed at myself for not realising that product virtually all having to come from Russia to deliver throughout the world instead of a large amount coming from Rosignano means that distribution costs would be significantly higher.

[carlos panda] 30/6/2009 08:18

Pretty grim reading.

For me the worst of it is the cash management issue - if they've lost access to a large part of their cash funds then it's not just a case of shooting themselves (or indeed the shareholders) in the foot, it's more like blowing our heads off with a shotgun.

I never cease to be amazed at the incompetence of supposedly intelligent managers.

CP

[whonosewhy] 29/6/2009 16:50

I don't see any good reason for it. They have been good at getting things out - previous results figures have been delivered well before deadlines and normally with a pre results announcement saying they will be announced on xxx date.

They have some well respected Board Members too so they would really not want to be tarnished with being involved with a company that was suspended on AIM.

[koolio] 29/6/2009 13:53

This is not a positive sign is it ?

I assume that if the figures are not posted tomorrow morning the shares will be in suspended until they do submit.

lets hope they are delaying because the management want to buy us out at 20p a share.

Dream On.

[whonosewhy] 29/6/2009 09:13

Well Monday is here and no figures yet, would be unusual not to release them first thing in the morning?

I wonder whether the email I got was more wishful thinking that they would get them ready over the weekend and they would be ready to release Monday but something has now caused them to not be ready.

I'd much rather they did not leave everything down to the wire.

[whonosewhy] 26/6/2009 13:48

Got a reply from the Investor Relations - they say results will be Monday.

Fingers crossed they are positive.

[carlos panda] 26/6/2009 11:19

Given the supply problems and cost increases I imagine the worry here is the extent of the losses since 01/07/08.

However cash at 30/06/08 was $8.9m and Solvay have returned a further $2.2m which together equate to the current market cap.

Although there may be some short term pain (surely already factored into the sp) if the company can sort-out the Rosignano problem then 2010 could be impressive.

I note that the true offer price has firmed over the last few days from 3.8 to 4.25.

[whonosewhy] 26/6/2009 09:09

I emailed the investor relations a few days ago and have sent a chaser this morning because I have not had a response except for an Out of office reply saying they were back in teh office on 22nd June.

Maybe they are all busy preparing the figures?

[masurenguy] 26/6/2009 08:26

Still no indication of when results will be published. If they're not published by the close on Tuesday they will be in breach of AIM rules.

[koolio] 26/6/2009 08:21

Tick - Tick - Tick.

[studhaves] 22/6/2009 21:46

They should be okay I think.

[koolio] 19/6/2009 19:09

I have no reason, but I am still confident about this co..

Good luck to all holders!

[whonosewhy] 19/6/2009 11:17

another day/week passes without results....I'll email the company today and see if they say anything.

[whonosewhy] 18/6/2009 09:10

I think they have to provide figures by end of June and the last RNS indicated they would be providing figures in June - but I too am getting a bit concerned that June is ticking by now and last year they announced in April so there is clearly something causing a delay.

I'm still clinging to the fact there have been major changes at Board level and this may mean the new person wanting to take time to get these figures absolutely right.

[whonosewhy] 27/5/2009 16:53

Clearly I don't know the details of the deal. My attempt at reading between the lines for what it is worth -

I think Solvay made some promises to Zirax on supply of raw materials. Zirax paid an up front fee towards the costs of setting up the factory to bring the raw materials on line because Zirax needs the product because they have buyers lining up to buy the products.

It now seems very likely that Solvay can't deliver the product - I guess in the quantity needed because if it is poor quality they would not take ongoing supply.

Zirax are used to getting what they want from the supply in Russia because they have control over it and so they appear to have got back cash from Solvay and I would imagine that they will use this cash to source the product elsewhere. Unless Solvay come up with a better deal.

I guess it delays expansion but they could look to acquire using the returned cash to pay for it.

[masurenguy] 27/5/2009 14:48

whonosewhy - So clearly you don't know either !

[whonosewhy] 27/5/2009 14:11

I guess we maybe have a reason for delaying results?

It does sound like Zirax are playing hardball with them though.

[masurenguy] 27/5/2009 12:25

So can anyone explain what's actually going on where Rosignano is concerned and the real significance of todays RNS !

21 June 2006

Solvay will develop a new plant to produce CaCl2 pellets at its Rosignano facility in Italy. Two-thirds of all production will be acquired by Zirax which will enable Zirax to meet the growing demand from nearby African and Middle Eastern markets for calcium chloride pellets.....A long-term purchase agreement will expand Zirax's annual CaCl2 sales capacity from 88,000 tonnes per annum to 140,000 tonnes by Q4 of 2007.......Zirax will make a payment of Euro4 million to Solvay, which will be offset against the price of Solvay's sales to Zirax from the plant over the next 5 years....It is estimated that sales of product sourced from the Rosignano facility will account for approximately 30% of Zirax's overall annual sales......Initial production from the Rosignano CaCl2 pellet plant is expected to start in November 2007 with an annual capacity of 80,000 tonnes per annum.

27 May 2009

Zirax announces that it has together with Solvay S.A.initiated a process of renegotiation of the existing supply and licensing agreements at the Rosignano plant in Italy........As part of this process, both parties have agreed the return to Zirax of the advance payment that Zirax made pursuant to the supply agreement for a total of EUR2.2m (EUR2.0m in advance payment costs originally paid to Solvay, plus an additional EUR0.2m in interest payments), and this payment has been received by Zirax. Zirax will continue to source product from the Rosignano plant while the renegotiations take place. Both companies are confident they can reach a mutually acceptable adaptation of the supply and licensing agreements. The Company believes that the outcome of the renegotiations will provide Zirax with greater commercial clarity, so that it can continue with its strategy to expand the business internationally and meet continued customer demand for its premium grade products.

Still no position here but it remains on my Watchlist.

[azalea] 27/5/2009 12:02

Good news all round in latest update, especially "demand for its product is greater than current supply".

[masurenguy] 23/5/2009 15:47

This is another area for concern with regard to investing in Russian companies !
.................................................................... ...........

Relations between Russia and EU worsen after summit ends without agreement.

Russia and the European Union could not conceal a growing divide in relations yesterday, as their latest summit ended without agreement on key issues. Differences over trade and the war in Georgia last year cast a shadow over the two-day meeting in Khabarovsk. The EU failed to secure Russian guarantees that gas supplies would not be disrupted again after deliveries were halted for two weeks in January in a payment dispute with Ukraine. Russia sparked fears of a fresh crisis by casting doubt on Ukraine's ability to pay for gas.

President Medvedev described the EU's new Eastern Partnership programme to boost trade and political ties with the former Soviet republics of Ukraine, Moldova, Belarus, Georgia, Armenia and Azerbaijan as "a partnership against Russia". Mr Medvedev said: "We tried to convince ourselves but in the end we couldn't." Jose Manuel Barroso, President of the European Commission, insisted that the project was "against nobody. It's to support prosperity and stability".

[whonosewhy] 22/5/2009 12:52

Precisely my worry masurenguy!