LONDON (Alliance News) - ZincOx Resources PLC Tuesday said it has continued to improve its operations at the Korean recycling plant in the first half of 2015.
The company's Korean recycling plant is its only producing asset. It treats electric arc furnace dust generated from steel production to recover zinc and some lead.
In the first half of 2015, the plant generated USD22.2 million in revenue, substantially up from USD17.8 million a year earlier, whilst earnings before interest, tax, depreciation and amortisation rose to USD2.9 million from USD600,000.
"These figures demonstrate the dramatic turnaround in the performance of our Korean operation, and we expect to see a significant further improvement as we reach full daily production through the import of feed stock," said Chief Executive Andrew Woollett.
In terms of production, the plant treated 77,485 tonnes of electric arc furnace dust in the period, up from 60,555 tonnes a year earlier. In the second half of 2014, the plant treated 58,569 tonnes.
"The company has demonstrated that the plant is capable of being operated at nameplate capacity on a daily basis but as a result of cut backs in Korean steel production, there has been a reduction in the amount of electric arc furnace dust generated in Korea which has in turn restricted throughput at the Korean recycling plant and for much of the half year the plant ran at only about 80% of capacity," said ZincOx.
In order to tackle the short supply of electric arc furnace dust in the country, ZincOx plans to import material to treat at the plant. In the meantime, the company will use stockpiled material to ensure the plant runs "close to full capacity", it said.
On Monday, ZincOx reached an agreement with the holders of its loan notes to extend the redemption date by a year and said it has also agreed to sell its assets in the US as planned.
Still, ZincOx shares were down 0.9% to 13.50 pence per share on Tuesday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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