I agree. I like OXR a lot more than ZFX. Zinc is pitiful at the moment, and OXR is in a great place at the moment. I think the merger is definatley a reason the SP has suffered.
Has now bounced off support as expected, looks promising for the short-term at least.
But you know what I cant understand MRC is that remember last year when the rumours were around about the merger and the sp would sky rocket.
One little bit of a hint of a merger and bang ...up 20c, and i think there was one time it went up 40c.
As soon as the truth come out that they did merge the sp nose dived. Just thought it was a bit odd.
SGB
Pertinent article (in terms of the ST softness in zinc)Can't say I was following OXR last year too closely (so no idea when the merger rumours sent up the SP), but perhaps it was because the market was more robust then! Right now, scepticism has definatley creeped in, and ZFX is now being viewed as a dog due to the price of zinc. Great cash, but without a rise in the zinc SP, how much is it really worth? The marvelous nature of complex systems! Just another reason I try and keep it as simple as I can!
Diluting their reliance on zinc, well that rings a bell dosn't it!Pertinent article (in terms of the ST softness in zinc)
"Sinking zinc still in the pink long term"
Date: 25/6/2008
Author: Tim Boreham
Source: The Australian
Some mining companies are diluting their reliance on zinc in response to the slump.
Dividend will probably be about 10c a year.
If OXR wants to keep holders who got shafted happy they better be paying a dividend around 12-15c a year which I don't see happening since that would be about $369million to $450million.
ZFX will probably only make about $400million and OXR $450-500million
The power of zinc: Startup CEO talks zinc-based fuel cells
Washington (Platts)--26Jun2008
Robust supply and softer demand has transformed zinc from a hot to a
lukewarm commodity, but new technology that would make zinc the power running
cell phones and laptops -- and a significant distance down the road -- a fuel
source in hybrid cars, could help launch the base metal's comeback.
Power Air Corp., based in Livermore, California, announced this week it
had entered into a technology-sharing deal with Hawthorne, New Jersey-based
eVionyx to make zinc-based battery units called Powerpacks, that will give
extended-run capability to increasingly sophisticated -- and power-hungry --
mobile electronic devices like Blackberrys, MP3 players, and global
positioning systems.
"People don't know that zinc is a potential energy source," Power Air
President and CEO Donald Ceci, told Platts. "Eventually, if the world was
running on zinc, you'd have sustainable fuel." But, he added, "There's a lot
of development work to be done."
The technology is known as the zinc-air fuel cell, which gets its name
from the underlying chemical reaction that occurs when zinc pellets are mixed
with oxygen from the air, causing zinc oxidation. Lithium is the material
currently used in the batteries powering mobile electronic devices, but
deposits of the commodity are more scattered and scarce than zinc, and
increasingly pricey in the face of insatiable demand for the next big thing in
electronics, Ceci said.
"There's not that much lithium; you get it from salt lakes on the tops of
mountains in Chile and China." While those are not the only regions where the
material is found, he said, "There's certainly not enough to run the world's
hybrid electric vehicles." What's more, Ceci added, "Lithium is getting more
and more expensive because all the portable devices are running on lithium. So
zinc is developing into the next-generation alternative to lithium. We're
pioneering that to an extent."
Although the current crop of hybrid vehicles have fuel cells based on
lithium or hydrogen, the zinc-air fuel cell is safer and better for the
environment, he said. "The nice thing about zinc is, it's nonflammable and
nonexplosive and you end up with zinc oxide as a byproduct, which is totally
recyclable. You don't burn anything up into the atmosphere [so] there's no
emissions." Also, "of all the stable elements, zinc has the highest energy
density, so it is a very good power source," Ceci said.
These qualities could raise the base metal's profile as a fuel source and
drive up its price on the order of metallurgic coal -- the coal used to make
steel -- the price of which has soared on rocketing steel demand from China.
"Broadly speaking, I think this is a trend that going to grow not only in
North America and Europe, but around the world," Bart Melek, a commodities
analyst with BMO Capital Markets, told Platts. "Certainly with oil at
$135-138/barrel, we're going have to use other ways [to get power]."
how low will this one go? i want to buy in but sentiment could make it a steal... anyone want to hazard a guess?
how low will this one go? i want to buy in but sentiment could make it a steal... anyone want to hazard a guess?
Not a good idea to "guess", IMHO.
I'm waiting for an upturn in the trend which given the state of the markets may take a while.
Patience needed!
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