Since refocusing its 'zinc from recycling' activities from the US to Korea, ZincOx has made good progress towards getting its first project into production in the first quarter of next year. It has secured a 50-year lease over the project site and signed agreements for Korea Zinc to purchase all of the project's output and provide $50m (£31m) of project loans. The balance of the $110m initial capital cost will be funded from existing cash resources.
The company's strategy is to produce zinc from waste dust generated in the recycling of scrap galvanised steel. It has signed supply contracts with every steel recycling company in Korea, which together will provide about 400,000 tonnes of waste per year. The initial production target is 46,000 tonnes of zinc a year. Phase two of the project will look to double production and produce a higher quality washed product, at an additional cost of $146m.
An impairment provision of £114m reflects write-downs of the Jabali Mining investment - given the security situation in Yemen - and, following the change of focus to Korea, the value of the US recycling project.
There are no current forecasts for the company.
| ZINCOX RESOURCES (ZOX) | ||||
|---|---|---|---|---|
| ORD PRICE: | 52p | MARKET VALUE: | £40.3m | |
| TOUCH: | 51.5-52p | 12-MONTH HIGH: | 63p | 31p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 80p | NET CASH: | £38.4m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2006 | 0.17 | 5 | 8.6 | nil |
| 2007 | nil | 16 | 23.3 | nil |
| 2008 | 0.26 | 6 | 7.1 | nil |
| 2009 | 1.18 | 0 | -3.4 | nil |
| 2010 | 1.93 | -111 | -89.0 | nil |
| % change | +63 | - | - | - |
| Aim: Mining | ||||
