Zincox Resources Plc Share News (ZOX)

LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Tuesday.
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FTSE 100 - LOSERS
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RSA Insurance Group, down 1.5%. The insurance industry is set to face a significant bill from the flooding that has devastated large swathes of northern England, according to two estimates of the damage, amid concerns that a new storm could bring further problems for the region. KPMG, the accountancy, warned the economic impact of the flooding which hit parts of the UK following Storms Desmond and Eva over the course of December could be nearly GBP6.0 billion, with insurance claims for the flooding estimated to hit around GBP1.5 billion. PwC, another accountancy, said it estimated the economic loss from the floods could be between GBP900.0 million and GBP1.3 billion, with insurers bearing up to GBP1.0 billion of that. RSA rival Aviva was down 0.5%, while Jardine Lloyd Thompson Group, which has a specialty insurance broking unit, was down 2.2% in the FTSE 250.
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MAIN MARKET AND AIM - WINNERS
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88 Energy, up 18%. The oil and gas company said the Icewine 1 well in Alaska was drilled to its target depth and that it met all primary unconventional drilling objectives, along with robust conventional finds. The company said oil shows were recorded in the drill hole, along with good heavy gas and shale gas shows. In addition to the unconventional finds, the company also saw robust results on the conventional oil and gas resources at the project, and a detailed petrophysical log interpretation of those results is now underway, it said. In addition, the reservoir quality in the Kuparak sand interval at the project is "substantially" higher than 88 Energy had expected, it said, which could prove positive for deeper prospectivity on the overall Project Icewine acreage.
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MAIN MARKET AND AIM - LOSERS
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ZincOx Resources, down 43%. The company said it will start cutting costs and jobs across the business in order to shore up its financial position after it failed to raise the funds required under its agreement with Korea Zinc. The company struck a deal with Korea Zinc in November to reschedule the USD57.1 million in debt ZincOx owes to Korea Zinc, but this was dependent on ZincOx raising USD5.0 million by the end of 2015. Despite "intensive efforts" ZincOx said had been made in recent weeks to raise the funds before the end of the year, it has not been able to secure a sufficient number of investors to fund this amount. ZincOx said that given its current tight cash position, it will be actively seeking to cut costs and will review its staff numbers. The board of the company has said it will waive its remuneration for the time being. The company will now start seeking to raise new funds, though it also said it will consider managing the business in order to sell off its remaining assets.

Cathay International Holdings, down 18%. The Chinese healthcare sector investor Cathay International Holdings PLC said its results will miss market expectations for the full year due to higher-than-anticipated operating expenses. While revenue and gross profit both will be broadly in line with market forecasts, albeit weaker than the company had expected, operating expenses are expected to be significantly higher due to additional spending on marketing of existing and new product ranges. As a result of this, the group expects to post a material pretax loss for the year to the end of December, "markedly" below market expectations, it said.
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By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance

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