HPC Follower
30 Jul 2015
Re: Holding increase and use of funds Yes... the shares are relatively cheap against the potential but the ability to buy stock below 13p does not encourage taking up of the open offer at a higher price, even if this gives the company more actual money rather than moves shares around.SR Global obviously have a lot more cash than us PIs whose stock holdings have been largely decimated over the last 5 or so years in the areas of oil/gas, metals, even diamonds and gold...
Cadenza
29 Jul 2015
Holding increase and use of funds SR Global have increased their holding to over 14% from 8%, they certainly believe in ZOX. AW also purchased nearly 1m more shares.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"
popes11
28 Jul 2015
Open offer flop Open offer looking like a flop and no wonder."The proceeds of the Open Offer, assuming full subscription, will be used to progress work on the next EAFD recycling project in Thailand. "What are they going to do with the 1m? Scrape the topsoil off the site. They have pumped over 100m into current project if my memory serves me right. Concentrate on getting current project earning share holders a good return and we might back you with further cash. Until then don't bother asking.
The buzz
20 Jul 2015
Re: EAFD Post script:-[link] article shows that India has actually imported more steel from Korea last year, but there is also a huge upswing in the imports from China - as I was suspecting in my last post. India's iron ore (and coking coal) is now expensive compared to Australian iron ore, so I they are now putting up small import tarrifs. If the Chinese are going to continue to dump steel at low prices, then the likes of the Korean steel industry may well find that the Indian market is not so profitable and further constrain production - and the by product needed by ZOX.The BuzzThe B
popes11
17 Jul 2015
Placing money Looks like the placing money is going to bring some worthwhile benefits. Substituting coal for gas is going to save at least $880,000. Also removing the heat exchangers is expected to produce benefits of $5m a year. So costs of $2.2m is expected to bring total benefits of nearly $6m a year. All will be forgiven if this works out as planned.[link]
InsanityBeckons
16 Jul 2015
Re: Placing Probably why the share price suddenly dropped back on 8th July. The Institutions were offered the shares back then at a juicy 20% discount to the market price.They forwrd sell them off at a profit, then get to buy them back at the lower rate.No risk for the IIs, everyone else suffers the drop.Having said that, ZOX need to do something to clear off some of the debt, the interest must be crippling when we don't have enough feedstock to actually process for a profit.The board really need to step up to the mark and get things sorted. This is a really simple error they should have seen coming and sought to resolve before it became an issue.
popes11
16 Jul 2015
Placing Why would I buy shares at 13p when I can buy right now below that? Zox is turning into a share that is for trading rather than holding. They just can't seem to build momentum. Maybe they should invite a squirrel onto the board to teach them how to stockpile.
The buzz
14 Jul 2015
Re: EAFD I must admit that the poor availability of feed material (EAFD) seems to have caught out the management. To import more material sounds like an additional transportation overhead. The RNS does not really explain why there is a cut back in the Korean steel industry. I cannot say that I know definitively why, but from my following of the steel market we know that the price of coking coal and iron ore has been particularly low recently, with excess steel making capacity in China. I believe that as a consequence the price of Chinese steel has been depressed and is being exported at historically low prices. This might help explain why the Korean steel output has been falling. The short term outlook therefore does not appear to offer any likely increase in the Korean steel production - if anything it could decline further. So I suspect that importing of EAFD will continue for a little while yet - possibly with increased volumes.So the future of ZOX would appear to be closely tied with the steel market in China. There is scope for the Chinese market to recover as the housing market is at last improving, plus there are some enormous Chinese infrastructure projects both in China and overseas (eg railway building in Africa). However, it is likely to be several months before many of these projects have traction on the steel market. There is another factor and that is the demand for steel from the Korean ship builders - I do not know this market, but suspect that falling commodity prices could well reduce the demand for shipping. Hence the Blatic dry index comes into play:-[link] 1 year and 5 year plots show that the index has fallen quite significantly, but is now recovering. I would suspect that the demand for new shipping will be limited with the BDI at its current level.Well that is my best stab at an explanation - does anyone else have any thoughts?The B
popes11
14 Jul 2015
EAFD So after years of problems they finally get the plant working well. At this point they start to run short of stuff to put in the plant. FFS get your act together and apply a little forward thinking to the situation. New dust arriving in August then stock levels up to required level in October. Unimpressed with them here.
