Quite a lot going on in the background regarding VRUP, the sale of land no longer needed in Turkey and ZOX's 15% holding in Moxico Resources.
Liquidity of ZOX shares is also improving with trading now on a monthly basis through Asset Match. The share price has gradually moved up from the 3/5/17 opening value of 0.45p, through 0.66p and 0.7p (quarterly auctions) up to 0.8p expected in tomorrow's (31st January 2018) first monthly auction, where it seems demand is now exceeding availability.
2018 will be a critical year for ZOX, whose projects and value will be greatly helped if the prices of zinc and copper continue to strengthen.
Over a million ZOX shares were traded through the Asset Match auction on 23rd August, at 0.65p a share...
The company can still recover if the planned Vietnam plant deal gets the full go-ahead with Korean Zinc (financial) support - now making themselves a lot of money with zinc at $3,000... the drop down to $1,500 over a couple of years came at just the wrong time for ZOX.
That's is helpful I will give that a try but seems it is not in the interest for me to leave I be careful what I tell them as to the reasons why I want to do this or maybe I will tell them I might be needing a valuation for divorce reasons so I would like it removing maybe?
Barclays tell they can't sell the stock or convert to a share certificate until they are back on a main market again. This is not new for a failed stock. It is not a problem until you want or are forced to close an account.
The only answer then is to formally request a letter from your broker which will authorise them to write them off from your perspective, even if that means your broker has to effectively buy them from you at next to zero cost; just to move them out of the way. I am waiting for such a letter so my International Account can be closed after getting another nil current value stock is removed with my authority.
anybody here can tell me how to get distressed assets of my book on my SIPP as I want to change my provider but they say I cannot because I have ZOX and PCI that have been delisted.
They are obviously now worthless so why can they not just tear them up anyway, this just seems stupid and I have googled everywhere for a solution but no one seems to know how to remove them?
In my last message, I spoke about "zinc dust" in the context of supply agreements - when I should really have called this EAFD - waste from electric arc furnaces in iron/steel foundries that is nowadays often supplied "free" to avoid the high costs of disposal and potential harm to the environment and people nearby. In summary:-
Steel scrap is recycled in electric arc furnaces by a simple remelting process. Steel production by this method accounts for about one third of global steel production annually.To protect them from corrosion, steel objects are increasingly galvanized which involves the object being coated by a thin layer of zinc metal. As more steel is galvanized so too scrap contains an increasing amount of galvanized material. When the scrap is recycled, the zinc from galvanising, together with other base metals, alkalis and halides, are driven off as a dust and caught up in the flue gasses. These fine particles need to be filtered out before the furnace gasses can be discharged to the atmosphere. The filters are periodically cleaned and the resulting dusty material is known as electric arc furnace dust or EAFD.
That Sarossa deal looks to be good for Richard Griffiths and Blake Holdings, and 1p a share is better than nothing I guess for existing shareholders - although they will still feel "cheated" out of their slice of the asset value - especially if the offer is at the bare minimum rate of 1p a share.
In the case of ZOX, the largest shareholder (SR Global Fund) owns about 17.5% of the company, so nobody is close to being able to buy >50% of the shares.
Most holders are staying in because the technology solution in South Korea was actually very good in terms of being "green" with a capability for ZOX and it's partners to make money with the active support of the governments concerned. Unfortunately, ZOX had teething problems with the heat exchanger (which should have been engineered out much quicker) and other items which curtailed the production. The ridiculously low price of zinc for the period of about a year came at just the wrong time for them, and they just run out of cash and key supporters at the end of 2015. Makes one question how and who is able to manipulate the prices of some of these commodities so significantly...
Nevertheless, a new plant in Vietnam good easily allow ZOX to recover well over the next few years, especially with the extra plant process to refine the zinc concentrate/quality for greater financial returns.
Andrew Woollett, the guy with the keys skills/knowledge still holds >3% of the company with huge incentives to increase the value for his family, pension, etc.
I will continue to hold my ZOX shares, well averaged down, whilst there is still "hope". I do expect their previous partner, Korea Zinc, to assist in enabling the planned plant in Vietnam (which is certainly needed), especially given the money they are now making from the Korean Plant and the strong working relationship with ZOX directors. Zinc dust and pre-purchase agreements will be key and the plant design side should be more straight forward given their "knowhow" based on the current plant in Korea and other research/trials they have done.
Indeed, if the volume of cash needed from ZOX is relatively low, and the NPV is high for the Vietnam project (as expected), the real value of ZOX should steadily increase - even if it takes three years before full production commences.
The ZOX AGM is on Friday 16th June, when shareholders should hear more about the progress being made.
Richard Griffiths and Blake Holdings have acquired 11.2% of former AIM-quoted investment company Sarossa for £519,500 (1p a share). This takes the concert partys stake to 51.9% so it has to make a mandatory bid at 1p a share but that is well below the most recent asset value. At the end of 2016, the NAV was £11.3m or 2.4p a share. That included £3.73m of cash.
Thanks for that Ben.
Not sure you will look here again , but if you do got one called sarassa plc delisted some years back anything for that ?
Also a property company demerged from fyffes plc years ago ( blackrock i think )
ZincOx Resources plc
("ZincOx", the "Company" or the "Group")
Joint Venture Agreement with Korea Zinc
regarding Vietnamese Recycling Project Joint Venture.
ZincOx Resources plc ("ZincOx" or "the Company") is pleased to announce that on 19th January it entered into a Joint Venture Agreement ("JVA") with Korea Zinc Company Limited ("KZC") for the joint development of a recycling plant in Vietnam, the terms of which were set out in an MoU, previously announced on 24 November 2016.
Under the JVA, KZC will fund 100% of a Definitive Development Study (DDS) in sufficient detail to enable the raising of project finance for the construction of the project. The DDS is expected to cost about US$2.5 million. KZC will own 51% of a special purpose company which has been set up to develop the recycling plant, with the remaining 49% held by ZincOx. In the event that the DDS costs more than US$3m, the interest of ZincOx in the joint venture shall be diluted proportionately accordingly to the additional funds that KZC has contributed, however ZincOx will be able to buy back its interest to 49% on the same terms in the following six months.
The recycling plant will be based on the Rotary Hearth Furnace (RHF) technology developed by ZincOx in Korea. The Korean Recycling Plant, now owned by KZC, is one of the world's largest facilities recycling the waste dust (EAFD) generated by recycling galvanised steel scrap and has a design capacity of 200,000 tonnes per annum.
The Vietnamese recycling plant is planned to treat up to 100,000 tpa of EAFD and, in addition, to upgrade both the iron and zinc intermediate products of the RHF to final products.
Muscati, please remember that about a year ago now the directors stopped taking salaries because of the lack of cash, directly attributed to the price of zinc being less than half of today's price - so costs then exceeded revenue; and the finance director had to move on because he couldn't earn enough with ZOX if he stayed on - so another person has the job on a part-time basis for now at least.
ZOX also had to let go all of the staff in their Belgium based Metallurgical research team which I personally hold responsible for wasting £millions trying to solve the Korean plant heat exchanger problem when the simple solution was just to remove them and use extra oxygen to compensate for the heat no longer retained. The learning curve was just too long with the first plant, and operating process/equipment adjustments too expensive as zinc prices dropped.
The outstanding loans had to be paid off now if only because the company would have folded otherwise. It leaves ZOX debt free with it's knowledge, IPR, business contacts and a few key directors (Andrew Woollett in particular) able to re-start the business through a number of projects where they are making good headway, e.g. in Thailand. The major shareholders and the ZOX directors all have significant financial incentives to turn the business around even whilst the company is effectively now a private limited company.
These projects will be crucial for shareholder returns in the future.
Note ZOX is now "debt free", and the plural in "projects"... with the strong price of zinc helping:-
ZincOx Resources plc
("ZincOx", the "Company" or the "Group")
Sale of Remaining Interest in KRP
ZincOx Resources plc ("ZincOx" or "the Company") is pleased to announce that on 11 January 2017 it entered into a Sale and Purchase Agreement ("SPA") with Korea Zinc Company Limited ("KZC") in regard to the Company's remaining interest in Zinc Oxide Corporation ("ZOC"), formerly known as ZincOx Korea Limited, owner of the Korean Recycling Plant ("KRP").
KZC has agreed to pay a total of USD 7,950,000 in two tranches for the remaining interest in ZOC, of which USD 7,000,000 is to be paid within three weeks and the balance once KZC has completed various procedural requirements in Korea. In the event that the second tranche is delayed by nine months, interest will start to be paid at five per cent. per annum on the amount outstanding. It is anticipated that the second tranche will be paid within six months and in the meantime the shares will be held by KZC in escrow. The carrying value of this asset shown in the Interim Statement of the Company at 30 June 2016 was USD 5,800,000; thus this transaction results in a gain of approximately USD 2,000,000.
The proceeds from the sale will be used to repay the Company's Corporate Loan Notes, which together with accrued interest amounts to approximately USD 5,000,000 (£ 4,000,000). The balance will be used to progress other projects upon which we have been working.
Commenting on the announcement, Andrew Woollett, ZincOx's CEO, said: "The sale will enable the Company to pay off all its debt and provide sufficient funds for us to work on new and exciting major projects around which the Company can be rebuilt"
This announcement contains inside information for the purposes of Article 7 of regulation 596/2014.
to everyone continuing to work for and support Zincox Resources in its efforts to re-start and grow their business... including the shareholders who have stayed with the company despite the delisting in 2016.
2017 will see ZOX survive or fail, hopefully the former if the price of zinc strengthens whilst some of the projects in the pipeline are launched..
ZincOx Resources plc
(ZincOx, the Company or the Group)
Memorandum of Understanding with Korea Zinc
regarding Vietnamese Recycling Project Joint Venture
ZincOx Resources plc (ZincOx or the Company) is pleased to announce it has entered into a
Memorandum of Understanding with Korea Zinc Company Limited (KZC) for the joint development
of a recycling plant in Vietnam.
The MoU sets out the principle terms of a Joint Venture Agreement under which KZC and ZincOx will
jointly design and develop the new recycling plant.
The MoU foresees KZC funding 100% of a Definitive Development Study (DDS) in sufficient detail to
enable the raising of project finance for the construction of the project. The DDS is expected to cost
about US$2.5 million. Korea Zinc will own 51% of a special purpose company which will be set up to
develop the recycling plant, with the remaining 49% held by ZincOx. In the event that the DDS costs
more than US$3m, the interest of ZincOx in the joint venture shall be diluted proportionately
accordingly to the additional funds that KZC has contributed, however ZincOx will be able to buy
back its interest to 49% on the same terms in the following six months.
The recycling plant will be based on the Rotary Hearth Furnace (RHF) technology developed by
ZincOx in Korea, and where KZC are the Companys partners. The Korean Recycling Plant is one of
the worlds largest facilities recycling the waste dust (EAFD) generated by recycling galvanised steel
scrap and has a design capacity of 200,000 tonnes per annum.
The recycling plant is planned to treat 100,000 tpa of EAFD and in addition to upgrade both the iron
and zinc intermediate products of the RHF to final products.
Commenting on the announcement, Andrew Woollett, ZincOxs CEO, said:
We can now accelerate the programme for the development of this important project, and we look
forward to entering into the full Joint Venture Agreement in the very near future.
Korea Zinc are helping to give ZOX second chance to recover their business; and so they should given the profit they should now be making from their 90% of the South Korea based plant given the strong zinc price recovery, now around $2,600 a tonne. Wouldn't ZOX shareholders have been so much better off if they has been prepared to find that $5m needed as a bridge year ago now when zinc dropped to just $1,500 a tonne?
Nevertheless, for those still holding ZOX stock, whilst a private company for immediate future, this is very encouraging news... hopefully to be matched or bettered by one or two of the other project opportunities still being chased.
This would rate a STRONG BUY if there was a market to buy/sell ZOX stock...
Not bust, but gone "private" as the current business with only 9% of the Korean plant (although now no debt) isn't enough business to meet AIM inclusion rules.
Many shareholders have stayed in (like myself) and are supportive of a number of potential projects in Vietnam and elsewhere. The company could fail inside a year or start to turnaround - currently helped by the rising price of zinc after being hit by the very poor prices a year ago.
The key directors have a big financial incentive to get ZOX into some of these new projects over the next few months... to utilise their IPR and knowhow.
UK firm: BR-VT good to invest in furnace dust treatment project
October 25, 2016
UK firm: BR-VT good to invest in furnace dust treatment project
By Van Nam The Saigon Times Daily
A steel scrap site at a steel mill in Ba Ria-Vung Tau Province PHOTO: VAN NAM
HCMC The UKs Zincox Resources PLC said Ba Ria-Vung Tau (BR-VT) Province is a good destination for it to develop an arc furnace dust recycling facility worth US$115 million.
The company got in-principle approval for the project with an annual processing capacity of 100,000 tons at Phu My 3 Industrial Park in the southern province on Tuesday.
According to Zincox Resources, industrial parks in Phu My of Ba Ria-Vung Tau are home to many steel mills, so it is an appropriate place for the company to build a plant to treat electric arc furnace dust. These steel mills account for more than two-thirds of Vietnams steel production.
Therefore, the investment project of Zincox Resources is necessary as the provinces steel industry needs an appropriate measure to recycle electric arc furnace dust emitted from steel mills.
Like other recycling facilities of Zincox Resources around the world, the output of the facility in Ba Ria-Vung Tau is zinc oxide of high purity, which can be used by the rubber and ceramics industries.
It will take Zincox Resources a couple of months to negotiate with local steel mills to ensure long-term supplies for the facility as well as prepare an environment impact assessment.
Zincox Resources expects to provide steel mills in Ba Ria-Vung Tau with a good dust recycling service and rubber and tire producers with more zinc oxide supply.
According to experts, Vietnams steel industry is not environmentally sustainable as dust emitted from electric arc furnace has not been recycled effectively. Zinc oxide contained in each car tire or rubber product accounts for 2-5%.
Seven operational steel mills in Ba Ria-Vung Tau are operated by Southern Steel, Fuco, Pomina 2, Pomina 3, Dong Tien, Posco Vina and Vina Kyoei. These facilities have a combined capacity of about five million tons of steel ingots per year.
Environment experts estimated with millions of tons of steel produced, over 800 tons of dust and slag are emitted a day.
Le Tan Cuong, head of environmental protection in Ba Ria-Vung Tau, told the Daily on February 17 that emissions from steel mills are hazardous.
The Ministry of Natural Resources and Environment has permitted three environmental firms specializing in treating hazardous waste in the northern provinces of Thai Nguyen and Hai Duong to collect and transport dust from steel mills in Ba Ria-Vung Tau to the north for treatment, he added.
Back in 2014, the government of Ba Ria-Vung Tau decided not to call for investment in steel production, particularly construction steel and steel ingots, and seven other sectors as they pose a high risk of water pollution.
Even though ZOX shares are going to be de-listed soon, the recovery today indicates that some believe that good progress is being made on at least one of the prospective projects whilst the price of zinc is recovering from last year low points.
For longer term (5 year+) share holders, the de-listing is not necessarily a disadvantage.
All is not lost yet... some of the project opportunities are still likely to come through in my opinion and there is little virtue in spending money on Nomads and maintaining an AIM listing whilst cash is so short.
There will be positive cash flow from the South Korea plant from 2017, albeit ZOX now only have a c.10% share - although no associated debts; and the strengthening zinc price can only help.
I am now the owner of stock in 3 companies which have left AIM, or are about to de-list (ZOX, MIRL and PRG), each one averaged down substantially close to the end. Time will tell whether this was a great idea - but at least these holdings represent a small portion of my overall portfolio overall.
Yet another sh!1t sandwich from this mob and they are still talking a good game. The house is burnt down which will allow us to use the charred remains to draw a lovely charcoal portrait of ourselves. So really its all good.
Looking at that "inclusion in the ZOX accounts" again, it certainly implies that ZOX don't see any possibility that the ZOX share price will ever recover to 25p but do see 5p as a reasonable target to achieve or even over-achieve - so those holding the warrants have a greater chance of making some money from their investments/loans to support ZOX.
The price of zinc continues to strengthen, now above $2,000 a tonne, which must surely help the company agree terms and gain additional funding for the plant planned in Vietnam; as well as increase returns from their c.9,5% holding in the South Korea based plant. Hopefully, we will hear more at the AGM on 17th June - if not before...
Does this imply that any share offer to accompany project finance and off-take agreements for the next project (Vietnam) will be targeted at 5p a share?
"The Loan Notes have warrants attached, the amount and price of which are adjusted as new shares are issued, so as to maintain the interests of the Loan Note holders. As at 31 March 2016, the Noteholders were entitled to warrants over 19,217,840 shares at an exercise price of 25p. If, as would seem likely, the Company carries out further funding by issuing new equity over the life of the Loan Notes, additional warrants would need to be issued. In order to simplify the situation and reduce future dilution, it has been agreed in May 2016, that the number of warrants will be reduced to 9,450,000 with a new strike price of 5p."
It's disappointing that the whole Korea based plant couldn't be retained post the last year when zinc prices reached exceptionally low values, but at least ZOX starts again with little debt and a 10% interest. The heat exchangers should have been taken out (rather than being replaced and given special linings) very much earlier once there were problems with corrosion/leakage and this was found to be the root cause... but it's easier to say this with hindsight.
The jump up today in the share price is rightly due to the residual Korea plant NPV being much higher than the market value of ZOX; and the greater likelihood, in my view, that ZOX will get a second major project/plant underway in Vietnam sometime this year - with 18-24 months to get production running. Good news here will see a re-rating of the company potentially back to the 6p level again - especially if any share placement/rights issue can be limited through offtake agreements and project finance.
It looks like ZOX is far from closing down and the directors are rightly keeping their own income down to support ZOX having taken very good incomes when times were better during previous years.
Important message from the Financial Conduct Authority:
Posting inside information that is not public knowledge, or information that is false or misleading, may constitute market abuse.
This could lead to an unlimited fine and up to seven years in prison.
If you have any information, concerns or queries about market abuse, click here.
The content of the messages posted represents the opinions of the author, and does not represent the opinions of Interactive Investor Trading Limited or its affiliates and has not been approved or issued by Interactive Investor Trading Limited.
You should be aware that the other participants of the above discussion group are strangers to you and may make statements which may be misleading, deceptive or wrong.
Please remember that the value of investments or income from them may go down as well as up and that the past performance of an investment is not a guide to its performance in the future.
The discussion boards on this site are intended to be an information sharing forum and is not intended to address your particular requirements.
Whilst information provided on them can help with your investment research you need to consider carefully whether you should make (or refraining from making) investment or other decisions based on what you see without doing further research on investments you are interested in.
Participating in this forum cannot be a substitute for obtaining advice from an appropriate expert independent adviser who takes into account your circumstances and specific investment needs in selected investments that are appropriate for you.