ZincOx Resources Live Discussion

ripley94 29 Dec 2020

ZincOx Resources has lost its AIM quote but has found a new project to keep it going We last wrote about ZincOx Resources in December 2016 and it read like a ‘For Whom the Bell Tolls’ yarn’. The headline read: “ZincOx Resources needs to find a new flagship project if it is to survive as an AIM stock”. Well, it has not survived as an AIM stock, for the time being. It’s admission to AIM was cancelled on April 28 2017. But it has survived as a viable company, a bit battered and worn perhaps but now in a recovery mode. ZincOx is a 17 year old UK –based company which was focused on zinc mining. It shed the last of its mining interests and in recent years has concentrated on deploying innovative technology to extract zinc from recycled electric arc furnace dust (EAFD) from steel plants. The company’s flagship project, near Pohang, South Korea’s leading steel city, came on stream in 2012 using EAFD, which is a hazardous waste and a cheap feedstock. The plant, called the Korean Recycling Plant one (KRP1), cost US$112million, with funding from ZincOx and its partner Korea Zinc Company (KZC), who planned to buy the recycled zinc on a long term agreement at a price based on the London Metal Exchange (LME) prices. Scrapped steel for recycling at ZincOx’s plants Photo: www.zincox.com Everything seemed hunky dory and a second plant KRP2 was mooted. But KRP1 was bedevilled by technical problems and these became acute during 2015. Specifically, profitability of KRP was compromised the frequent stoppages required to repair heat exchangers. To make matters worse, the commodities price crash in the second half of 2015 to a five year low of US$1,639 a tonne led to continuous losses which, in the absence of additional funding, led to a major restructuring of ZincOx’s ownership of the KRP asset, the result being that ZincOx’s interest was effectively reduced to 10 per cent as at December 2015. Then to make matters even more difficult KZC experienced further financial problems and a complicated debt restructuring involving US$7.95m in loan notes, during the tail end of 2016 and the early part of 2017 resulted in ZincOx’s interest in KCP becoming zero. The reduction of the company’s interest in its principal asset KRP meant under AIM Rule 15 ZincOx became a cash shell. Its shares were suspended from trading on October 31 and six months after this date unless there was a reverse takeover through the feeding-in of a new large asset, the shares no longer would be admitted to trading on AIM. Hence the cancellation on April 28. But although ZincOx was loss making to the tune of US$6m at the end of 2016, in February 2016 the company raised £205,000 and in June 2016 a further £300,000 by way of the issue of new shares at a price of 1p a share, representing a premium to the then market price of 82 per cent and 60 per cent respectively. So the group had some cash to play with. Moreover throughout 2016 the over-supply/ demand balance for zinc came back into kilter as some of the world’s largest zinc mines became exhausted. With demand picking up the price started to improve, comfortably reaching over US$2000 a tonne by 2016. With these two positives with them, the company proceeded with a new project. A Memorandum of Understanding (MoU) was entered into with the Korea Zinc Company 2016 for a Joint Venture (JV) over the Vietnamese Recycling and Upgrading Plant (VRUP), an arrangement approved by the Vietnamese government. Following the year-end on January 19 2017, a JVA was entered into between KZC and ZincOx, for the joint development of the recycling plant, the principal terms being that KZC would hold 51 per cent of the project and ZincOx the remaining 49 per cent. The VRUP is designed to have a capacity of 100,000tpa EAFD and cost about US$107m to develop. As for the shareholders following the AIM admission cancellation, ZincOx has appointed Asset Match, a Financial Conduct Authority (FCA) regulated group that will operate an electronic off market dealing facility for the ordinary shares. This facility will allow shareholders to trade their ordinary shares by matching buyers and sellers through quarterly auctions. ZincOx has said that shareholders should note that following the cancellation, even with such a trading service in place, there will be no public market or trading facility on any recognised investment exchange for shares and accordingly, the opportunity for shareholders to realise their investment will be limited. When they suspended last October the shares stood at 0.45p.

ripley94 29 Dec 2020

GOT A PAYOUT ABOUT 680% DAEL

ripley94 31 Jul 2018

NOT SURE WHAT TO MAKE OF THIS SHARE IT APPEARS TO BE STILL ALIVE AS I HAVE BEEN SENT A TENDER OFFER OF 2.5P FROM THE COMPANY THEY GUARANTEE 50% OF HOLDING MORE IF YOU APPLY AND OTHERS DO NOT TAKE IT UP .

HPC Follower 30 Jan 2018

ZOX - still in recovery Quite a lot going on in the background regarding VRUP, the sale of land no longer needed in Turkey and ZOX's 15% holding in Moxico Resources.Liquidity of ZOX shares is also improving with trading now on a monthly basis through Asset Match. The share price has gradually moved up from the 3/5/17 opening value of 0.45p, through 0.66p and 0.7p (quarterly auctions) up to 0.8p expected in tomorrow's (31st January 2018) first monthly auction, where it seems demand is now exceeding availability.2018 will be a critical year for ZOX, whose projects and value will be greatly helped if the prices of zinc and copper continue to strengthen.

HPC Follower 19 Oct 2017

ZOX in not dead; in recovery $4m gained from the sale of their excess land in Turkey, VRUP plant plan progressing but dependent on supply and off-take agreents & more innovate agreements for ZOX to play it's key role.General Meeting on 31/11 to approve 7.5% investment in copper mining company.Shares still trade via Asset Match the Share Centre, but none yet offered to buy/sell on the 22 Nov auction date.

HPC Follower 26 Aug 2017

ZOX Shares Traded Over a million ZOX shares were traded through the Asset Match auction on 23rd August, at 0.65p a share...The company can still recover if the planned Vietnam plant deal gets the full go-ahead with Korean Zinc (financial) support - now making themselves a lot of money with zinc at $3,000... the drop down to $1,500 over a couple of years came at just the wrong time for ZOX.

Philbot44 28 Jun 2017

Re: ZincOx - Asset Match That's is helpful I will give that a try but seems it is not in the interest for me to leave I be careful what I tell them as to the reasons why I want to do this or maybe I will tell them I might be needing a valuation for divorce reasons so I would like it removing maybe?

HPC Follower 28 Jun 2017

Re: ZincOx - Asset Match Barclays tell they can't sell the stock or convert to a share certificate until they are back on a main market again. This is not new for a failed stock. It is not a problem until you want or are forced to close an account. The only answer then is to formally request a letter from your broker which will authorise them to write them off from your perspective, even if that means your broker has to effectively buy them from you at next to zero cost; just to move them out of the way. I am waiting for such a letter so my International Account can be closed after getting another nil current value stock is removed with my authority.

Philbot44 28 Jun 2017

Re: ZincOx - Asset Match anybody here can tell me how to get distressed assets of my book on my SIPP as I want to change my provider but they say I cannot because I have ZOX and PCI that have been delisted.They are obviously now worthless so why can they not just tear them up anyway, this just seems stupid and I have googled everywhere for a solution but no one seems to know how to remove them?

HPC Follower 28 May 2017

EAFD In my last message, I spoke about "zinc dust" in the context of supply agreements - when I should really have called this EAFD - waste from electric arc furnaces in iron/steel foundries that is nowadays often supplied "free" to avoid the high costs of disposal and potential harm to the environment and people nearby. In summary:-Steel scrap is recycled in electric arc furnaces by a simple remelting process. Steel production by this method accounts for about one third of global steel production annually.To protect them from corrosion, steel objects are increasingly galvanized which involves the object being coated by a thin layer of zinc metal. As more steel is galvanized so too scrap contains an increasing amount of galvanized material. When the scrap is recycled, the zinc from galvanising, together with other base metals, alkalis and halides, are driven off as a dust and caught up in the flue gasses. These fine particles need to be filtered out before the furnace gasses can be discharged to the atmosphere. The filters are periodically cleaned and the resulting dusty material is known as electric arc furnace dust or EAFD.

HPC Follower 28 May 2017

Re: ZincOx - Asset Match That Sarossa deal looks to be good for Richard Griffiths and Blake Holdings, and 1p a share is better than nothing I guess for existing shareholders - although they will still feel "cheated" out of their slice of the asset value - especially if the offer is at the bare minimum rate of 1p a share.In the case of ZOX, the largest shareholder (SR Global Fund) owns about 17.5% of the company, so nobody is close to being able to buy >50% of the shares.Most holders are staying in because the technology solution in South Korea was actually very good in terms of being "green" with a capability for ZOX and it's partners to make money with the active support of the governments concerned. Unfortunately, ZOX had teething problems with the heat exchanger (which should have been engineered out much quicker) and other items which curtailed the production. The ridiculously low price of zinc for the period of about a year came at just the wrong time for them, and they just run out of cash and key supporters at the end of 2015. Makes one question how and who is able to manipulate the prices of some of these commodities so significantly...Nevertheless, a new plant in Vietnam good easily allow ZOX to recover well over the next few years, especially with the extra plant process to refine the zinc concentrate/quality for greater financial returns.Andrew Woollett, the guy with the keys skills/knowledge still holds >3% of the company with huge incentives to increase the value for his family, pension, etc.I will continue to hold my ZOX shares, well averaged down, whilst there is still "hope". I do expect their previous partner, Korea Zinc, to assist in enabling the planned plant in Vietnam (which is certainly needed), especially given the money they are now making from the Korean Plant and the strong working relationship with ZOX directors. Zinc dust and pre-purchase agreements will be key and the plant design side should be more straight forward given their "knowhow" based on the current plant in Korea and other research/trials they have done.Indeed, if the volume of cash needed from ZOX is relatively low, and the NPV is high for the Vietnam project (as expected), the real value of ZOX should steadily increase - even if it takes three years before full production commences.The ZOX AGM is on Friday 16th June, when shareholders should hear more about the progress being made.

Philbot44 24 May 2017

Re: Anyone still holding here? Still hold what, I invested 5k and sadly this is now worth £38 not even a night outProbably cost me more to sell

Asset Match 15 May 2017

Re: ZincOx - Asset Match Ripley94, just spotted this re: SarossaUNQUOTEDRichard Griffiths and Blake Holdings have acquired 11.2% of former AIM-quoted investment company Sarossa for £519,500 (1p a share). This takes the concert party’s stake to 51.9% so it has to make a mandatory bid at 1p a share but that is well below the most recent asset value. At the end of 2016, the NAV was £11.3m or 2.4p a share. That included £3.73m of cash.

Asset Match 09 May 2017

Re: ZincOx - Asset Match Hi Ripley94,I have spoken with Sarossa in years gone by but unfortunately they are not one of the companies that we currently have on our secondary market.At last look they were involved in various share buy-backs (Jan 2016), so it would be worthwhile contacting them to what they can potentially do - [email protected] is not one that I've ever come across if truth be told but just like the above, it's always worth taking a few minutes to contact the firm.If you or anyone else for that matter needs any more detail regarding ZincOx then feel free to get in touch.

Ripley94 06 May 2017

Re: ZincOx - Asset Match Thanks for that Ben.Not sure you will look here again , but if you do got one called sarassa plc delisted some years back anything for that ? Also a property company demerged from fyffes plc years ago ( blackrock i think )