http://www.proactiveinvestors.co.uk/companies/news/63789/zincox-production-expected-to-ramp-up-significantly-during-q4-says-broker-63789.html? ZincOx production expected to "ramp up significantly" during Q4, says broker ZincOx Resources' principal priority is the creation of value by the development of mining and recycling operations that benefit from low cost processing of unconventional zinc bearing materials. Secondarily and where financing is available, added value will be created by the development of refining operations. The company's objective... The fourth quarter should see an uptick in production for ZincOx (LON:ZOX), says broker finnCap, which has issued a note on the company, now ZincOx has completed its fundraising. In mid-November, the recycling specialist unveiled plans to bring in up to £5.59 million via a placing, open offer and subscription from IFC - part of the World Bank. The proceeds are to be used to fund the final stages of the flagship recycling plant in Korea. Analyst at finnCap David Buxton said ZincOx had raised £4.98mln in total: £2.47mln from the IFC, £1.94mln from institutional investors and the open offer of 3.6mln shares brought in £0.56mln. The issue, at the placing price of 15.5p, means the firm has increased its equity base by 31%, or 32.1mln shares. The IFC now holds 11.8% of the company. Buxton highlights the significance of the IFC investment, which he says "provides a new deep-pocket cornerstone investor that probably, in effect, underwrites the group to profitability". "The IFC is the world’s largest global development institution, with US$48.8bn in investments," he says, adding it is keen to fund added-value projects, such as zinc oxide production, in developing countries. At its Korean KRP1 plant, ZincOx treats a waste product from the recycling of scrap iron, and transforms it into a saleable zinc concentrate. Buxton acknowledges the well-documented technical issues that have beset trading in the first half. He notes that production has been well below target, thus incurring greater losses than anticipated and additional expense on repairing and improving equipment. However, he adds: "These have now been remedied and production is rising. October was on track and has achieved a small positive EBITDA. "Assuming no further technical issues, production is expected to ramp up significantly during Q4 and we hope this will mark a turning point in the group’s trading."
29 Nov '13
http://www.moneyam.com/action/news/showArticle?id=4715576 StockMarketWire.com ZincOx Resources shareholders have approved the company's proposed subscription, placing and open offer of new ordinary shares to raise up to £5.59m in total. The open offer closed for acceptances at 11.00 a.m. on 27 November. The company received valid acceptances from qualifying shareholders in respect of 3,620,341 open offer shares, including applications for 993,932 open offer shares under the excess application facility. This represents approximately 49% of the maximum open offer shares available under the open offer. The company has therefore raised the gross proceeds of approximately £0.56m through the open offer. In addition, at an exchange rate of £1.00/US$1.6166, the IFC will subscribe for 15,963,412 ordinary shares. Also following the resolutions in relation to the capital reorganisation, the nominal value of each ordinary share is now 1p per share. At 1:14pm: (LON:ZOX) ZincOx Resources PLC share price was 0p at 15.25p
19 Nov '13
Minesite - weekly review
Zinc has been in surplus every year since 2007, according to an SP Angel morning note circulated this week. In the nine months to September, the market was 38,000 tonnes in surplus, which was an improvement on the 98,000 tonnes surplus that was running this time last year. The amount of the surplus doesn’t seem to have had much of an effect on the price though, which at US$0.84 per pound is currently trading at almost exactly the same price it was at this time last year. What may end up making more of a difference is the amount of the metal held in LME warehouses. After five years of relentless rises from less than 100,000 tonnes at the beginning of 2008, this now looks to have peaked at around the million mark. The pattern over the last 12 months has been one of steady decline marred by the occasional spike. Zinc bulls have been calling a rise in the zinc price for many years, partly on structural grounds. Old mines are running down and new ones aren’t, say the bulls, likely to produce quite as much product. Up till now the market has disagreed, and it’s easy to see why. Mine production in the nine months to September this year was, at 9.7 million tonnes, little changed on production last year. But demand is rising too, up 5.6 per cent year-on-year, driven by a 10 per cent increase in demand from China and a nine per cent increase from India. In that context, it was interesting to see ZincOx raising money, supported by the IFC as new cornerstone investor. ZincOx’s new Korea Recycling Plant has had more than its share of issues, which is why the new money is required. But comment from broker Finncap argues that these issues have now been “remedied”. Once the operation is up and running, ZincOx’s costs will be in the lowest quartile, so profits ought to be fairly easy to come by even in the current weak pricing environment. But if demand continues to rise and warehouse stocks to fall, the zinc price could start moving up too and the IFC’s investment could look very well timed. Zinc bulls have been wrong before, but the stars are now at last beginning to align.
18 Nov '13
I will be buying more in this it's a innovative company, I feel we could see some big gains as we move into next year.
15 Nov '13
http://www.proactiveinvestors.co.uk/companies/news/63274/zincox-fundraising-boosts-roll-out-plans-says-chairman--63274.html? ZincOx fundraising boosts roll out plans, says chairman ZincOx Resources' principal priority is the creation of value by the development of mining and recycling operations that benefit from low cost processing of unconventional zinc bearing materials. Secondarily and where financing is available, added value will be created by the development of refining operations. The company's objective... Tuesday's fund raising from ZincOx Resources (LON:ZOX) represents a major fillip for the recycling company's technology and its plans to roll it out globally. So says the recycling specialist's executive chairman Andrew Woollett, speaking to Proactive, after the firm announced the £5.59 mln financing, which includes a cornerstone subscription by the IFC - part of the World Bank - to raise £2.5mln. It follows discussions between the pair for a year and considerable due diligence from the IFC on the ZincOx technology, which treats a waste product from the recycling of scrap iron, and transforms it into a saleable zinc concentrate. A first plant in South Korea, KRP1, was commissioned last year, which is now going through ramp-up. The business plan is to roll out plants in other parts of the world, which is where the IFC comes in, says Woollett. It is mandated to support private sector projects in emerging markets - such as ZincOx's plans for Turkey, Thailand and Russia. "It's very, very good news to have a strategic partner of this sort of magnitude, who is really in for the long term and really interested in the roll out. It's as much as I could hope for," he said. The move should also be "hugely reassuring" reckons Woollett to a market where the single biggest concern appeared to be whether the plant and technology would work as planned. Problems in Korea have included problems with the heat exchangers and blockages, which have meant operations have at times had to stop while repairs are carried out. To put this into context, until July this year, the plant was operational, since April 2012 only 65% of the time, because of such issues. According to Woollett, the IFC investment speaks volumes as an endorsement of the group's technology. As well as the IFC subscription, Tuesday's cash call includes a placing to raise around £1.94mln and an open offer to existing shareholders. The total proceeds will be used to finalise improvements at the KRP1 plant and provide working capital to keep things going over the next five months, because although the firm's making money at project level - as a group, it is not. "It also gives us the beginning of a war chest to chase up other projects," he told Proactive. The firm aims to start putting together intermediate engineering (rather than just basic) on the next generation of plants before Christmas
13 Nov '13
Strong Zinc price predictions Pt 2
Sorry...truncated... One of the latest developments has been the expansion of a joint venture between Thyssenkrupp Steel and Anshan Iron and Steel. Under the plan announced in September, output of galvanised steel from the partnership in Liaoning Province will be boosted by incorporating two existing galvanising lines with a combined capacity of 800,000 tonnes a year at Anshan's main Chinese site. "MONSTER MINES" SHUTTING China's refined zinc imports rose more than 10 percent in the first nine months of 2013, trade data shows. And the pending shut down of older zinc mines will collectively eliminate 1.7 million tonnes of production, or 11 percent of world consumption. MMG's 500,000-tonnes-per-year Century mine in Australia, the biggest of those set to close, runs out of ore in 2016. Ireland's Lisheen mine, owned by Vedanta Resources and producing 170,000 tonnes a year, shuts in 2014. Others including Anglo American of South Africa's Skorpion mine and Rathdowney Resources' Pomorzany-Olkusz mine in Poland are also shutting inside three years. "You've got a lot of monster mines that are departing from the trade," said UBS commodities analyst Tom Price. "The sorts of operations that are going to replace them are small ones, so there is a risk that there could be a shortfall of mined zinc supply," Price said. The International Lead and Zinc Study Group forecasts a world awash with too much zinc through at least 2014, but sees the global oversupply shrinking to 120,000 tonnes this year and 115,000 tonnes in 2014 - below each of the previous four years. That compares with a Reuters poll of analysts pointing to a 110,000 tonne surplus in 2013, dropping to just 52,000 tonnes in 2014. BNP Paribas analyst Stephen Briggs believes zinc is already in short supply and forecasts a 20,000 tonne deficit this year and a 15,000 tonne deficit next year. The last time zinc entered a supply deficit, its value more than quadrupled. The price went from under $0.40/lb in 2003 to over $2/lb in 2006. Wood Mackenzie predicts zinc will average more than $1.59/lb from 2016-18 versus $0.88/lb so far this year. China produces more zinc than any other country and stands to benefit the most from any price uplift."
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