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ZincOx Resources
ZincOx Resources (ZOX) aims to become a low cost producer of zinc through development of its recycling projects in the United States and Turkey and its Jabali zinc mine in Yemen.
Recycling plant now fully financed
Funding for Ohio recycling project assured, creating flexibility for further development
Follows funding for the Jabali zinc mining project announced in January 2008
Total $280m raised in the last six months in debt and equity, against a forbidding market background
Target price 411p against current price of 175p
Prelims and progress
Reported profits heavily influenced by deferred settlement on Shaimerden
Funding in place to develop Jabali in Yemen
US recycling project on track
Fair value at 464p / share well above current levels
Robust financing in place
£20m conditional placing
Shaimerden 2007 payment received: £15m
Jabali mine go-ahead
Recycling: two stage development now planned
Steady progress: target price unchanged
Focus still to build a three site integrated solution to the stel industry's problem of disposal of Electric Arc Furnace Dust
Cash resources of £25m at end June 2007
Fair value seen at 558p/share
Unique, undervalued zinc producer
- ZincOx well advanced in plans to be a low cost producer of Zinc
- Processing technology provides a new, economic source of the metal
- Support (technical and on register) of Teck Cominco
- Current share price (280p) appears to significantly underestimate potential - medium term target 496p - Fair Value 558p
