forwardloop
24 Sep 2015
Re: ZincOx fired up for new push Shares mag - courtesy of alliance trust newsletterZincOx fired up for new pushMetals recycling group combats supply issue and secures Asian expansionDaniel CoatsworthA resolution to operational problems, a bullish pricing outlook for its end product and a major step forward with growth opportunities are all reasons to snap up metals recycling group ZincOx (ZOX:AIM) at 10.38p.Don’t worry about current share price weakness, that is a short-term issue caused by disruption in the zinc industry. The big industry players like Glencore (GLEN) are dumping stocks to raise cash to reduce high levels of debt. Longer-term, the outlook for zinc is market deficit – demand is likely to outweigh supply which is positive for the commodity price.ZincOx recovers metals from steel waste dust. Its plant in Korea produces a high-grade zinc concentrate and a low quality iron product. Three years of engineering problems have now been fixed with a string of positive trading updates so far in 2015. A three-week maintenance period in October will see ZincOx change a heating exchange set-up, saving millions of dollars in energy costs a year.Concerns about a shortfall in waste dust supply from the Korean market have also been addressed with ZincOx having finally got permission to import raw material from an undisclosed Asian country. Extra transport costs will be offset by the company getting waste dust with much higher metal grades than currently processed.It has also got the green light to build a recycling plant in Vietnam, a country with a big rubber industry where zinc oxide is a vital ingredient. Chief executive Andrew Woollett doesn’t believe construction financing will be a major problem, saying several local companies have already expressed interest and that 8.4% shareholder International Finance Corporation bought part of ZincOx to participate in future expansion.Shares says: BUY "We see considerable upside potential."
Ripley94
24 Sep 2015
Re: Sudden drop ***
muscati
24 Sep 2015
ZincOx fired up for new push This from today's 'Shares' magazine. Yet to read the full articleMetals recycling group combats supply issue and secures Asian expansionA resolution to operational problems, a bullish pricing outlook for its end product and a major step forward with growth opportunities are all reasons to snap up metals recycling group ZincOx (ZOX:AIM) at 10.38p. Don’t worry about current share ...
HPC Follower
24 Sep 2015
Sudden drop Small volume, but someone selling... no news seen by me yet which would cause this.
HPC Follower
24 Sep 2015
Zinc price The price of zinc remains volatile, dropped from US$1800 to 1625 during September - but recovered to 1650 in the last day or two.No cause for alarm yet for ZOX as they have a very low cost of zinc dust supply... but profits will be reduced until the zinc price recovers.Market confidence is poor, with the media hyping, even promoting stock and commodity market stress. This will no doubt change when some feel the bottom is hit and they want to move bond money into equities ahead of an overdue rise.
HPC Follower
24 Aug 2015
11% down... only 51,000 sold Sea of "red" today.... ZOX not helped by the falling price of zinc.If commodities prices keep dropping at this rate, there soon won't be any supplies to meet demand.Not sure how deep this will/can go as the SP for many companies is already well below the cash held (BLVN for example).
The buzz
15 Aug 2015
Chinese Steel [link] issue is that Chinese steel may flood the market. The downside for ZOX could be a further depression in the Korean steel industry and the supply of its raw material - which is evidently an issue at the moment. With the price of zinc now below $2100mt, I am beginning to feel that a bit of caution is again needed. I am hopeful of a rebound in the price of commodities, but at the moment it still looks a little way off.The B
HPC Follower
14 Aug 2015
Re: Good uptake of open offer Yes, I'm holding GKP stock as well as ZOX, but at least I did sell most of my GKP shares which were bought around 11p before the first drill success in Iraq (wish I'd bought more) for a good profit at around £1.50 a share (wish I'd done with the money released though) and have only bought into GKP again this year to take my GKP average down to 35p - holding more stock than I did originally. Risks are still high, albeit lower in my view than a few months ago when we had all the bond holder issues, but the potential is enormous should past costs be repaid and oil revenue grows as per contract, given Iraq is now shipping so much oil - even at the current low market price.Many of the entries in the GKP Bulletin Board are appalling, but there are good submissions from quite a few which make me read through the comments, etc. I have quite a few people on IGNORE though as a consequence.Did think of topping up on ZOX again, but I feel I have enough (152,000 shares) to keep a reasonable spread of risk/reward across my portfolio; and I can't afford to buy enough to get my average anywhere near close to the present share price; despite buying quite a few below 10p whilst waiting for the first plant to become better operationally.
Cadenza
14 Aug 2015
Re: Good uptake of open offer I agree with you, this is encouraging especially as the directors taking up the slack. This is the 1st rights issue I have ducked but I may well go in and buy a few on Monday to move my still high average price down a bit! This sp level appears to be a floor, fingers crossed. I saw you posted on the awful GKP board the other day, that is another of my big long term losers.
HPC Follower
14 Aug 2015
Re: Holding increase and use of funds popes11, whilst ZOX do need the first plant to be reliable and profitable, don't forget that the next plant (in Thailand) will have another process to further refine and the iron ore product to a standard which can be readily sold in the market at much higher prices.However, they will need the first plant to be well proven, the SP growing again and project finance with off-take and zinc dust supply agreements if the 2nd plant is to progress; hopefully without too large an equity finance requirement.
HPC Follower
14 Aug 2015
Good uptake of open offer Today's news is good, even if a lot of the "excess" not otherwise taken up went to one of the ZOX directors.Those wanting to top up can still buy close to, or even slightly below, the 13p per share offer...Still a long way to go for ZOX is become prosperous, but progress is being made slowly.
HPC Follower
07 Aug 2015
Re: Holding increase and use of funds To be fair to Barclays, they did also email about this offer, but I didn't see this until today... so still too late to respond.
HPC Follower
07 Aug 2015
Re: Holding increase and use of funds No more money for ZOX from me this time around... only got the Barclays paperwork on the offer today on my return from a week's holiday, one day too late to take up any of the offer rights by close yesterday.Hope they get the money they need, but I need some other stock prices to improve if I am going to invest any more money here...I am encouraged that the major shareholders are still showing good faith in the business, but zinc commodity prices are going to have to start increasing if there is going to be any growth in zinc supplies before demands greatly exceed availability.
Cadenza
31 Jul 2015
Re: Holding increase and use of funds @ 12.5p offered I can't disagree with that!
popes11
30 Jul 2015
Re: Holding increase and use of funds Popes, take a look at the announcement about use of funds, quote AW: "The Placing enables us to debottleneck the plant this year which will dramatically reduce downtime and improve the annual EBITDA of KRP. The additional funds to be raised in the Open Offer will allow us to press ahead with the pre-development work for the next project and so begin to unlock the full potential of the rotary hearth furnace technology"========== ========== ========== ========== ========== ========== ========== ==Yes I read the RNS and commented at the time that the placing money potentially is being well used. Using the open offer money(if they get it) for "pre-development" work is a nonsense. There will not be a another development if they can't get the current one to provide a return.
