# OK What happened to Zinc Overnight?



## tech/a (18 January 2006)

ZFX trimmed 10% so whats happening you Fundamental guys?


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## nizar (18 January 2006)

zinc overnight actually gained... now its over US$0.94/lb

go to www.oxiana.com.au
they have al the 24hr charts from kitco metals

ZFX fell 10% due to announcement released at 10:11am 2day reporting increased costs at century mine which will eat into earnings for 2007-08 and 2009...


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## tech/a (18 January 2006)

Thank you.

Its enough to bring tears to a chickens eyes.Only kidding.


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## GreatPig (18 January 2006)

Tech/a,

Think of it as a buying opportunity 

Cheers
GP


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## chicken (18 January 2006)

tech/a said:
			
		

> Thank you.
> 
> Its enough to bring tears to a chickens eyes.Only kidding.



Tech/ a...see what the company posted..I had sold longtime ago..but now its just about buying time again....something todo with an expense at the mine...did you get any SBM...that share will go a lot higher...


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## nizar (18 January 2006)

hmm im not sure gp about buying opportunity..

look at wat jp morgan said:

http://www.aireview.com/index.php?act=view&catid=8&id=3347

u would think at the $7 mark, that all those future earnings are already factored into the current price ??


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## trader (18 January 2006)

ZFX is way too high to be a buy, zinc has nearly doubled in the last 6 months and so has ZFX share price The only way that ZFX will increase further if there is a further increases in the zinc price or they can mine a hell of a lot  more or bring down their cash cost. I think the last two to be the least likely and even a 25% retraction in the zinc price will make this stock tumble.


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## GreatPig (18 January 2006)

I sold out today. Took my profit and ran 

Cheers
GP


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## brerwallabi (18 January 2006)

Who cares about ZFX, its had its days in the sun for the time being, start looking at the other Zincers PEM,KZL and CBH. PEM up over 50% since the new year finished at $1.59 today. KZL recently at all time high still got plenty of potential. CBH will fire up now its getting back on track after the mine mishap that could run up to 40 to 50cents.Zinc is still very much in a short supply situ.

Good news below for CBH.
As CBH Resources Ltd. struggles to recover from an incident at its flagship Endeavour zinc and lead mine, the Sydney-based company is busy running the ruler over a second mine.

CBH is undertaking a feasibility study on the Sulphur Springs zinc-copper project in Western Australia and expects to make a development decision in the second quarter of next year, Chairman James Wall said Wednesday.

The open pit mine is expected to cost around A$80 million to develop and start producing around 60,000 metric tons of zinc concentrates and 50,000 tons of copper concentrates a year from the second half of 2007, he said.

"We've been granted mining leases already and what we're doing now is modifying the previous operational plan from underground to open cut and going through with environmental approvals," Wall told Dow Jones Newswires.

Former owner Outokumpo Group's underground feasibility study looked at ore throughput at around 600,000 tons a year, while CBH's open cut plan is based on 1.2 million tons albeit at a lower cutoff grade, he said.

Sulphur Springs' logical off-taker, at least for the project's zinc concentrates, is CBH's 24.8% shareholder Toho Zinc Co. Ltd. of Japan, although the Australian company doesn't rule out other customers just yet.

"The situation is we have contracts for Endeavour with Toho and Zinifex Ltd. and obviously Toho is very interested in the zinc (from Sulphur Springs) but we haven't entered into commercial arrangement as yet," Wall said.
Zinc smelters struggle to secure concentrates

The feasibility study is being undertaken against a backdrop of rising refined zinc prices as global smelters like Toho struggle to secure concentrates after years of mine under-investment and as China-led demand keeps growing.

Highlighting the critically tight concentrate situation are reports Toho will be forced to reduce its metal output from January to March due to a decline in concentrate supplies from CBH's Endeavour mine.

Endeavour, a zinc and lead producer in New South Wales state, is expected to take another six months to fully recover from an incident reported in October involving falling waste ground around the site.

CBH has since stabilized a void, which in Wall's words started to self mine, but can only commit to 30% of contracted deliveries in the first quarter of 2006 and 60% in the second as it undertakes an adjusted work plan.

A Zinifex spokesman said the disruption won't be felt by the Melbourne-based company in terms of zinc due to the small tonnages involved, while it plans to source more lead concentrates from its Century mine to compensate Endeavour's delivery squeeze.

Endeavour's ongoing recovery means its previous annual output rate of 76,000 tons of zinc and 28,000 tons of lead is likely to shrink to around 57,000 tons zinc and 21,000 tons lead in the next calendar year, Wall said.

"We've lost money on this, that's for sure...on 30% production we lose and at 60% we could well break even. Zinc prices have gone up significantly so we should be highly profitable after that," he said.

The incident also means Endeavour's plan to ramp up to annual throughput of 1.4 million tons from the previous 1.2 million has been postponed to 2007 from 2006, he said.

Endeavour's setbacks, however, are part of the slower-than-expected supply-side response to rising demand that is helping to keep global metal prices around record levels and provide a supportive setting for developing new projects such as Sulphur Springs.

In the case of zinc, the price-supportive bottlenecks are at mines rather than smelters, but Wall doesn't expect the likes of Toho to attempt to shore up concentrate supplies by seeking greater operational control of providers.

"Nobody's made an approach to us...one of the problems with smelters is that they make pretty bad miners."


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## michael_selway (18 January 2006)

nizar said:
			
		

> hmm im not sure gp about buying opportunity..
> 
> look at wat jp morgan said:
> 
> ...




oh those vaulations are based on the discounted forecast earnings up to 2025, thats why, as zinc prices are forecast to fall in 2008 and beyond

however from now till 2008 its bullish, as increasing zinc demand outstrips decreasing supply, according to ZFX's AGM presentation


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## StockyBailx (13 February 2006)

trader said:
			
		

> ZFX is way too high to be a buy, zinc has nearly doubled in the last 6 months and so has ZFX share price The only way that ZFX will increase further if there is a further increases in the zinc price or they can mine a hell of a lot  more or bring down their cash cost. I think the last two to be the least likely and even a 25% retraction in the zinc price will make this stock tumble.




StockyBailz,   

Hows tricks Boys and Girls, Anyone out got an updated version ZFX Zinifex prospects for the future, I mean it made a Zinger Burger out if chicken, I think the Great Pig had lost his touch. My self i'm so faint hearted and still hold my shares awaiting the apprizal. Sure she has stayed still and begun moving sideways, well thats all fair enough, or is it just the industry correcting itself and getting ready to pounce once again. I like to think so and still hold high praise for ZFX. If it does take a dive for all those reasons I wont be too concerned because I'm covered.  Kick Arse zinifex.

Whats wrong?   

The Stocky one!


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