www.zincox.com
ZincOx Resources' principal priority is the creation of value by the development of mining and recycling operations that benefit from low cost processing of unconventional zinc bearing materials. Secondarily and where financing is available, added value will be created by the development of refining operations. The company's objective is to become a major low cost zinc producer.
Singer Capital upholds ZincOx target price; says Korean recycling plant on track
Following a meeting with the management of ZincOx (LON:ZOX), Singer Capital Markets confirmed that the Korean recycling plant (KRP1) project is on track and upheld its ‘buy’ recommendation on the company.
Singer analyst Charlie Long said the plant is on time and budget for hot commissioning during this quarter, which is currently expected at the end of March.
However, Long recommended investors that want to play the commissioning phase to buy stock in February, noting that there is a possibility that hot commissioning will be brought forward if there are no delays.
Long projects the plant to produce the first batch of high grade zinc power before the end of March and achieve full capacity in the third quarter.
“In designing and building KRP1, management has demonstrated an ability to deliver,” said Long.
“We believe the commissioning and ramp-up phase will demonstrate management's technological expertise, already proven at the Skorpion project in Namibia.”
Long’s sum of the parts valuation of ZincOx of £114 million, which translates into 128 pence per share, is based on discounted cash flow models for KRP1 and KRP2. The overall valuation represents a significant upside of 110 percent to yesterday’s closing price of 64.3 pence per share.
The first project alone is worth 111 pence per share after a 25 percent discount to reflect technological risks.
The valuation of the second plant is discounted by 75 percent to reflect both technological and financing risks that could emerge if the euro zone debt crisis deteriorates.
This morning, shares in ZoncOx rose six percent to trade at 68 pence at 10:45.



















