3 Nov 11:30
MARKET TALK: Zinc Bull Market "Only Just Beginning"
Dow Jones - Zinc bull market "only just beginning" on back of strong fundamentals going forward, should peak in '07, says Standard Bank. Concentrate availability to remain tight till '07, '08 when new mine supply comes through, while robust demand coming from galvanized steel sector, but warns unreported stocks could be at substantial levels which will bring downside risk...

Aldwick,

Thanks, the last past of the last post being a most pertinent warning to those that think the price of zinc can only travel in one direction!

Like the price of oil, if zn increases too much in price, it could effect the demand, and result in a downturn.

I believe oil has hit it's peak, and the world ececonomy would struggle to pay higher prices, resulting in a recession, and a price drop through the subsequent drop in demand.

Zinc could suffer the same problem.

Andy,

Copper will be the first to fall dragging Zinc down with it, regards oil price BP's chairman said anything above $60 would be unwelcome so this winter will be very interesting.

aldwick,

It certainly will IMO.

When you read China will consume an additional 1 million BOPD in 2006, you have to ask what will happen to the price!

Large trades today marked down as sells and bid price gone up 1p, anybody got a view on whats going on?

Wednesday November 9, 10:45 AM
INTERVIEW: Zinc Miners Wary Of Foiling Bullish Prospects

By James Attwood
Of DOW JONES NEWSWIRES

SYDNEY (Dow Jones)--Zinc miners are reluctant to expand their operations even as prices of the galvanizing metal surge to cyclical highs on the London Metal Exchange, Zinifex Ltd.'s (ZFX.AU) chief executive said Tuesday.

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In the late 1990s and early this decade, miners poured billions into ramping up output only to see prices collapse to 18-year lows as global demand slowed, forcing some to scale back investments and others to exit altogether.

Melbourne-based Zinifex, the world's second-largest producer of refined zinc, is itself a product of the industry's dark years, emerging from the ashes of the failed Pasminco group.

However, even as improving fundamentals mean zinc is fast becoming the new darling of the metals world, Zinifex and other major producers are wary of again flooding the market with additional supply and forcing prices back down.

"One would like to think producers have learned the lessons of the past, but time will tell," Greig Gailey told Dow Jones Newswires.

"Zinc is one of the late performers in the cycle and it's only in the last couple of months we've begun to see prices, at least in Australian dollar terms, that might encourage you to think of additional production," Gailey said.

"The rundown in LME stocks has been accelerating in the last month or so, so we're very positive about the outlook over the next 12 to 18 months at least," he said.

Most forecasters agree zinc's prospects heading into 2006 are bright, as concentrate tightness holds back refined metal availability and Chinese imports surge, although price expectations beyond 2006-07 are generally lower.

Major Expansion Plans Remain On Hold

Zinc's relatively newfound bullishness and concerns over repeating past mistakes by flooding the market means major expansion plans will remain on hold.

Contributing to the wariness are structural constraints derived from the lack of any significant investment in exploration and development when prices languished below US$800 in 2001-03.

"Even if we were to commit to a (new) mine today, it would be something like five years before you'd see any production, so you have to have a degree of confidence about longer-term prices," he said.

"Then you have to look at what other people might chose to do because you have to bear in mind the total supply-demand picture, not just where one company fits in it."

Other major zinc producers appear similarly wary. Market leader Teck Cominco Ltd. (TEK.MV.A.T) of Canada is understood to be keeping major expansions on hold until global stocks drop to at least 200,000 metric tons from current levels of 475,00 tons.

In fact, the only major zinc development in the pipeline is the San Cristobal mine in southern Bolivia, slated to start producing 200,000 tons a year from mid-2007.

The dearth of new projects has some analysts saying zinc stocks could shrink to record lows next year, which if copper's recent record-breaking performance is anything to go buy, has a potentially explosive implication on prices.

Escalating development and operating costs in the mining industry generally, as a byproduct of the commodities boom, are adding to the constraints on new supply, Gailey said.

He gave the example of Zinifex's A$1.3 billion Century mine in Queensland, Australia that in today's climate would have cost in excess of A$1.5 billion.

Smelters Feeling Concentrates Pinch

Zinifex posted profits of A$234.7 million for the year ended June 30, thanks largely to rising prices in the tightening concentrates market.

But the same situation means smelters like its Clarksville smelter in Tennessee, Zinifex's only unprofitable asset in the fiscal year, are feeling the pinch.

The company depends on concentrates from South America and Ireland for Clarksville, which may be forced to close if it continues to be unprofitable.

Gailey also said Zinifex would consider buying operating mines in South America as part of a global acquisition strategy.

"We've looked at a number of acquisition opportunities in the last 12 months and continue to do so, but (so far) we haven't seen anything we believe could be acquired in a way that would add value to shareholders...resource assets at the moment are very fully priced," he said.

The industry's consolidation potential includes Zinifex itself, Gailey said: "Our view of life is if somebody wants to buy Zinifex the only issue is price."

The company also plans to continue preparing for the future by farming into brownfield projects run by junior explorers in Australia and elsewhere, he said.

ZincOx Resources PLC
10 November 2005


ZincOx Resources plc ('the Company')

The Company was notified on 9 November 2005 that UBS AG, acting through UBS AG
London Branch, now has a material interest in 1,545,000 Ordinary shares of 25p
each in the Company, representing approximately 5.33% of the issued share
capital of the Company.


This information is provided by RNS
The company news service from the London Stock Exchange

ZincOx Resources PLC
11 November 2005


Aliaga Recycling Project Update 11 November 2005

ZincOx Resources plc is pleased to announce the completion of the first part of
the feasibility study for the Aliaga Recycling Project (Turkey) being undertaken
by SNC- Lavalin Europe. The work to date has included a technical review of the
process, plant layout, engineering design and an estimation of capital and
operating costs to an accuracy of +/-15%.

The Aliaga project envisages the production of high quality zinc oxide from
waste material (EAFD) generated by the steel recycling industry. Further
sampling of the Turkish EAFD over the past 12 months has allowed the company to
increase the initial capacity of the plant by one third so that the study is
examining the production of 20,000 tpa of high quality zinc oxide generated from
the EAFD produced by the steel mills at Aliaga alone.

ZincOx expects to be able to increase production to at least 30,000 tpa zinc
oxide by obtaining EAFD from steel mills located elsewhere in Turkey. The 20,000
tpa plant has been designed so that it may be expanded to 30,000tpa for the
minimum of additional expenditure. Although this adds to the capital of the
20,000tpa plant, it reduces the overall capital cost of the expanded project.
The cost of this expanded capacity provision and the increase in the initial
production rate has led to a revised capital cost of US$39 million for the
initial capacity of the plant.

Based on SNC-Lavalin Europe's cost estimates, ZincOx has revised its previous
cash flow models. For the initial 20,000 tpa capacity without further expansion,
using a zinc price of US$1,150 per tonne (Current price US$1,584 per tonne), the
project would have a post tax net present value of 19 million, at a 10%
discount rate, and an internal rate of return of 23%.

It is intended that the expansion to 30,000tpa would be financed largely out of
the cash flow generated in the first full year of production. A preliminary
financial model based on an expanded project, using a zinc price of US$1,150 per
tonne, has a post tax net present value of 28 million, at a 10% discount rate,
and an internal rate of return of 26%.

SNC-Lavalin Europe is scheduled to complete it's Feasibility Study in March
2006. This will include further engineering design up to a stage that will
consolidate the investment cost and confirm the process performance to enable
ZincOx to satisfy the requirements of the providers of project finance.
Discussions regarding the terms for project finance are well underway and the
terms of a mandate are close to being concluded.

Commenting on the announcement, Andrew Woollett, ZincOx's Managing Director said
'Our two phase approach to the feasibility study confirms the value of the
project ahead of the more detailed engineering required for project finance.
This allows us to commence infrastructural development on the site and to order
long lead-time items of equipment so that the overall development schedule for
the project will not be delayed by the arrangement of project finance.'

For more information please contact:

Andrew Woollett Leesa Peters / Pam Spooner
ZincOx Resources plc Conduit PR
Tel: +44 (0) 1276 455700 Tel: +44 (0) 20 7618 8533

awoollett@zincox.com

ZincOx Resources PLC
23 November 2005


ZincOx Resources plc finalises mandate for the financing of the
Aliaga Zinc Recycling Project in Turkey


23 November 2005


ZincOx Resources plc (ZOX) has, since its update announcement on 11 November
2005 in relation to the Aliaga Zinc Recycling Project in Turkey ('the Aliaga
Project'), entered into a mandate with Investec Bank (UK) Limited ('Investec')
to arrange and conditionally underwrite project debt for the development of the
Aliaga Project.

Investec is one of South Africa's leading banks with significant experience in
the arrangement and provision of development loans for projects in the mining
industry. Investec has made a preliminary assessment of the processing
technology to be employed at Aliaga and, based on this and ZincOx's revised cash
flow models, it is envisaged that the project finance loan facility of US$30
million will cover about two thirds of the capital required for the development
of the project and that the loan will be repayable over seven years. The
condition includes legal due diligence, revue of the feasibility study and
Investec final internal approval.

Investec will be paid a mandate fee of 400,000 equity warrants convertible into
ordinary shares in the capital of the Company for a period of three years, at a
conversion price of 2. A further 300,000 warrants will be awarded upon the
provision of the loan. These warrants will be for a period of three years
exercisable at a price representing a 133% of the price of the shares at the
time the loan agreement is finalised. In addition, a fee of 2.5% of the amount
of the loan will be payable at the time of the first draw down. In the event
that Investec do not provide this project finance, the original warrants will be
cancelled.

Investec will shortly commence a detailed evaluation of the project so that the
provision of the development loan can be put in place soon after the completion
of the detailed feasibility study by S.A. SNC-Lavalin Europe B.V., scheduled for
March 2006.

Commenting on the announcement, Andrew Woollett, the Managing Director of
ZincOx, said 'I am delighted to have Investec working with us and we expect the
relationship established for Aliaga to lead to their involvement in other
similar projects elsewhere in the world. Investec's willingness to study the
project even before the feasibility study is completed should enable the project
development to progress without delay.'

For more information please contact:

Andrew Woollett Leesa Peters / Pam Spooner
ZincOx Resources plc Conduit PR
Tel: +44 (0) 1276 455700 Tel: +44 (0) 20 7618 8533

awoollett@zincox.com

The newswires are full of Chinese zinc smelters putting expansion projects on hold due to the shortage of raw materials, while further fuel to the bullish flames was added in the form of reports that the government is moving to ban any new zinc smelter project with annual capacity of less than 100,000tpy.



Icing on the bulls' party cake came with the announcement from Korea Zinc it was mothballing its Big River Zinc refinery in the US due to the tightness in the concentrates market.



That takes another 90,000tpy of refined capacity out of the equation, following on from the (permanent) closure of the 90,000tpy Duisburg refinery in Germany and the 130,000tpy being closed by Belgian producer Umicore.



More may well follow with few significant additions to mined zinc production in the pipeline. So will new cycle highs with this market in full bull mode right now. The correction is still overdue but there are plenty of players just itching to join the bandwagon at lower numbers. Weakness, if it comes, will almost certainly be triggered by copper, but with zinc back in the party mood, it's not going to let anyone spoil things for too long.

ZincOx Resources PLC
07 December 2005

Press Release 6 December 2005



ZincOx Raises 13.2 million for the Development of the Aliaga Recycling Project



ZincOx Resources plc ('ZincOx' or the 'Company') (Symbol ZOX) has raised
approximately 12.7 million net of expenses in a placing (the 'Placing')
arranged by Numis Securities Limited ('Numis'). The Placing, which is
conditional inter alia on the passing of certain shareholder resolutions,
involves the issue of 8,787,333 new ordinary shares in the Company at a price of
150p per share. Immediately following the Placing the total number of shares in
issue will be 37,761,422. The proceeds from the Placing will be used principally
to fund the equity component of the development of the Aliaga Zinc Recycling
Project in Turkey ('Aliaga').



On 23rd November 2005, ZincOx announced that it had entered into a mandate with
Investec Bank (UK) Limited ('Investec') to arrange and conditionally underwrite
project debt for the development of the Aliaga Project. This project finance is
intended to provide approximately two thirds of the funding required to bring
the Aliaga plant up to operational capability, with the 12.7 million raised by
the Placing intended to provide the remainder and general working capital.



Commenting on the announcement, Andrew Woollett, ZincOx's managing director,
said 'Raising these funds more than covers our equity component of the Aliaga
project and enables us to start development early in the new year. This marks
the start of our transition to a producing company.'





ZincOx specialises in the recovery of zinc from non-sulphide zinc bearing
materials. The Aliaga project envisages the production of high quality zinc
oxide from waste material (Electric Arc Furnace Dust - EAFD) generated by the
steel recycling industry.



On 11th November 2005, ZincOx announced the completion of the first part of the
feasibility study for the Aliaga project undertaken by S.A. SNC-Lavalin Europe
N.V. ('SNC'), which includes a technical review of the process, plant layout,
engineering design and an estimation of capital and operating costs to an
accuracy of +/-15%.



The plant is initially being designed to produce 20,000 tonnes per annum ('tpa')
of high quality zinc oxide generated from the EAFD produced by the steel mills
at Aliaga, although, in due course, the Company expects to be able to increase
production up to 30,000 tpa zinc oxide by obtaining EAFD from steel mills
located elsewhere in Turkey. The 20,000 tpa plant has also been designed so
that it may be expanded to 30,000tpa for a reduced additional expenditure per
tonne. Although this adds to the initial capital cost of the 20,000tpa plant,
it reduces the overall capital cost of the expanded project. The cost of this
expanded capacity provision and the increase in the initial production rate to
20,000tpa has led to a revised capital cost of US$39 million for the initial
capacity of the plant.



Based on SNC's cost estimates, ZincOx has revised its previous cash flow models.
For the initial 20,000 tpa capacity without further expansion, using a zinc
price of US$1,150 per tonne (price as at 5 December 2005 - US$1,731 per tonne),
the project is estimated to have a post tax net present value of 19 million, at
a 10% discount rate, and an internal rate of return of 23%. It is intended that
the expansion to 30,000 tpa will be financed largely out of the cash flow
generated in the first full year of production. A preliminary financial model
based on an expanded project, using a zinc price of US$1,150 per tonne, has a
post tax net present value of 28 million, at a 10% discount rate, and an
internal rate of return of 26%.



The full SNC feasibility study is expected by the end of March 2006, but to
avoid any unnecessary delay in the development of the Aliaga plant, the Company
is raising funds at this stage.



In addition to the development of the Aliaga project, the Company has completed
a feasibility study on the Jabali zinc deposit in Yemen and will shortly be
commencing a feasibility study in the Mid West of the United States for the
recovery of zinc oxide from EAFD similar to the Aliaga project. ZincOx is also
continuing its research into other potential recycling projects including
testwork on the viability of the Polykiln technology for the potential
re-processing of slag.



Following completion of the sale of the Shaimerden deposit in Kazakhstan for
US$7.5 million in 2004, ZincOx is entitled to receive, subject to the zinc price
being above US$800 per tonne, further deferred receipts relating to the first
200,000 tonnes of zinc mined. These payments will be at a rate equivalent to
US$0.2375 per tonne for every dollar that the LME zinc price is above US$800 per
tonne. At a zinc price of US$1,600 per tonne (price as at 5 December 2005 -
US$1,731 per tonne), the further deferred receipts would amount to approximately
US$38.0 million. Providing the zinc price remains above US$800 per tonne,
further deferred receipts are anticipated to be received between 2007 and 2010.



Under the Placing, the Company has conditionally placed 8,787,333 new ordinary
shares of 25p each (the 'New Shares') at a placing price of 150p per share to
raise approximately 13.2 million before expenses (approximately 12.7 million
after expenses). The Placing has been arranged by Numis who have also
underwritten the issue. The Placing is conditional, inter alia, upon the
placing agreement between ZincOx and Numis becoming unconditional and not being
terminated prior to 6 January 2006, the expected date of admission, or such
later date (being no later than 13 January 2006) which the Company and Numis may
agree. The New Shares will rank pari passu in all respects with the existing
ordinary shares of 25 pence each in issue. It is expected that dealings in the
New Shares will commence on AiM on 6 January 2006.

Conditional on the completion of the Placing, the directors intend, pursuant to
the terms of the Company's Unapproved Executive Share Option Scheme previously
approved by the shareholders ('the Scheme'), to grant options over 878,333
ordinary shares in the capital of the Company at the same exercise price as the
New Shares.

For the purposes inter alia of giving the directors authority to allot and issue
the New Shares and to disapply statutory pre-emption rights in respect of such
New Shares, an extraordinary general meeting of the Company will be convened for
Thursday 5 January 2006 at 11.00 am. The Placing is conditional upon those
resolutions being duly passed.



For more information please contact:

Andrew Woollett David Poutney / Leesa Peters / Pam Spooner
Chris Wilkinson
ZincOx Resources plc Numis Securities Ltd Conduit PR
Tel: +44 (0) 1276 455 700 Tel : +44 (0) 207 776 1500

Up 5.5 at 160--164

Good boost on the back of the financing deal. I'm a bit surprised that it gave up a little today. This is a definate long term hold IMHO, since the market cap is still tiny.

>>aldwickk - I recently opened a spreadbet buy on Zinc. A serious rollercoaster ride, not for the fainthearted - but longer term could pay off - although the price may bit a bit frothy at the moment.

rgrds
gk

13 Jan 11:30
Zinc set to smash records as demand grows
Economic Times - ZINC prices are set for strong gains this year as fast-growing Chinese demand and a global shortage eat into stocks, analysts have said, as the metal soared above $2,000 a tonne for the first time ever. But they said zinc - which in percentage terms rose in value more than any other metal on the London Metal Exchange last year was vulnerable to any wider sell-off by funds that have ploughed money into commodities...

Gallick,

How's your spreadbet doing ?

ZincOx Resources PLC
13 January 2006

ZincOx Resources plc - Holding(s) in the Company


ZincOx Resources PLC ('the Company') was notified on 13 January 2006 that
Fidelity International Limited (FIL), and its direct and indirect subsidiaries,
hold 98,700 ordinary shares of 25p each in the Company and FMR Corp. (FMRCO),
and its direct and indirect subsidiaries, hold 970,000 ordinary shares of 25p
each in the Company. Together, this represents 2.83% of the Company's issued
share capital.

The shares are held in various nominee accounts and include the notifiable
interest of Mr. Edward C. Johnson 3rd, a principal shareholder of FIL and FMRCO.
The notifiable interest also includes interests held on behalf of authorised
unit trust schemes in the UK, notwithstanding the exemption from reporting
pursuant to Section 209(1) (h) of the Companies Act 1985.

The Company was also notified on 13 January 2006 that, following the sale of
225,000 ordinary shares on 11 January 2006, INVESCO English and International
Trust PLC no longer has a notifiable interest in the ordinary shares of 25p each
in the Company.

>>aldwickk

My spreadbet went great. I walked away with a 1200 profit - but I got out too early (at about $1800/tonne). The price is now over 2000. At 10 per point if I had sat tight I would have made another 2K.

But I'm making money on lead which has not yet spiked up anything like zinc. I would seriously recommend it, you can buy 3 month lead (zinc tin etc - call the traders) on IG index.

It raises a question about investing in ZOX. The progress they are making seems slow. They do benefit from the previous sale on the back of the rise in the zinc price, but they need to get on and start producing - otherwise they may be producing when the price is starting to fall again (but I reckon that is in at least 5 years).

I will continue to hold zox, but I want to some some news!

Good luck aldwickk - but I recommend that you check out IG index - if you want to make some serious dosh, since in my view you are better off investing in the physical, than shares in companies!

rgrds
gk

Gk,

I already have a IG index account, have a look at this interesting GFM / Zinc chart it would be interesting to see what ZOX looks like.