Australian (ASX) Stock Market Forum

ZFX - Zinifex Limited

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Re: ZINIFEX..ZFX

Check www.kitcometals.com if we stay around these shareprice sooner than later as MACQURIE said we would become a takeover target...no debt...good mine life of up to 15 years...good cashflow..shortage of ZINC...good orders....and money in the bank...makes one wonder but I would not at all supprised...we will know soon :2twocents
 
Re: ZINIFEX..ZFX

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Re: ZINIFEX..ZFX

It's good when someone else comes to a similar conclusion. I was starting to wonder if I'd drawn my lines right last night but I came to the same end result as you Tech.

Malachii
 
Re: ZINIFEX..ZFX

Ah good now I wont feel so lonely when I get it wrong! :D :D
 
Re: ZINIFEX..ZFX

Mine back in full production since yesterday...see tradingroom....I said it was a small hickup...now April..we get figures for 3rd quater should be still good as their receipts for zinc sold was higher than budgeted for..should still achieve their forecast.. :2twocents
 
Re: ZINIFEX..ZFX

afr.com had an article a week ago saying that this problem is going to impact profit by 12%. I am wondering why ZFX has not posted the financial impact of this hiccup?
 
Re: ZINIFEX..ZFX

Warren tell me have you thought about what you just posted...I worked out its about $4 million it will cost them in profits..you say 25 million..well on your figures they would loss 2.2 million a day now multiply thaT by 365 days..then you can see they dont make 803 million in profit..so go back and do your no..because you are up the shute with them...and who was this clever advisor..think before you post crap..post facts..I say $4 millons..and you say $25 millions..production figures would also be not right..so do us a favour and post real facts you dont know them and I only work on what I know..and I would be closer to the fact then you would you like a bet on that :2twocents
 
Re: ZINIFEX..ZFX

The 12% impact on profits is a comment from The Financial Review publication.

I think the impact is going to be between 15 and 16 millions. Report will tell...

:2twocents
 
Re: ZINIFEX..ZFX

As I said before your figures dont compute ,as when your average profit per day is around 350k....how can you come up with these redicoulous figures..as I said you would not like to ,because. what you posted does not compute...think...you might get a supprise...I say ,their loss is around $4 million..because you work it out ,use your calculator...because thats the only way you would get your figures...because ,the company will advise so you assume, well we will see what comes out but your no...dont compute... post facts not fiction...and the finacial times has been wrong many a times... :2twocents
 
Re: ZINIFEX..ZFX

Mining operations in general have lots of fixed costs which are not avoided if production is halted for any reason. Even energy is commonly subject to a take-or-pay contract.

Losses resulting from a production halt are thus reasonably close to otherwise expected REVENUE rather than profits.

For example, company xyz earns $100 million p.a. with costs of $85 million p.a. to give a profit of $15 million. A 3 month production halt reduces annual revenue by 25% to $75 million but costs during that period might only fall, say, 20% (5% over the year) giving annual costs of about $81 million and a loss of $6 million for the year.

I don't know what the figures are for Zinifex but if you are going to lose, say, 5% of annual production from Century then that is a 5% REVENUE loss from that part of their operations with a relatively much smaller cost saving.
 
Re: ZINIFEX..ZFX

They just stoped the milling...not the works..the material was stockpiled to go throuhg the mill...it was just one tiny part of their operation...also they budgeted for sales at A $1400 per tonne...but they received between..$1800...to $1695 per tonne....well above their forecast..Warren you never took this in consideration..as I said its not going to maKE a hugh difference in their profits.. :2twocents
 
Re: ZINIFEX..ZFX

Well - $3.06 was my alert and if it closed below $3.00 I was closing out. Unfortunately it closed at $3.00 which means what ever I do I'm going to probably regret it (LOL). Ah well - I'll be watching tommorrow very carefully!

Malachii
 
Re: ZINIFEX..ZFX

chicken said:
They just stoped the milling...not the works..the material was stockpiled to go throuhg the mill...it was just one tiny part of their operation...also they budgeted for sales at A $1400 per tonne...but they received between..$1800...to $1695 per tonne....well above their forecast..Warren you never took this in consideration..as I said its not going to maKE a hugh difference in their profits.. :2twocents
Click to expand...

Well, I do not see where your numbers are coming form either. I'll give you some of my points, I'll give you the reference so you don't say I am making it up:

- Zinifex costs were 3% higher than forecast in first half year due to higher oil and other commodity prices affecting inputs. (Oil still going up) (Zinifex website, half year results)

- FY05 Second Half Forecast Assumptions (A$/t) Zinc 1,570 Lead 1150. (It is not $1400 per tonne, please recheck your numbers) (Zinifex website, half year results)

chicken said:
They just stoped the milling...not the works..the material was stockpiled to go throuhg the mill...it was just one tiny part of their operation...
Click to expand...

- I do not think it is a tiny part, this is how the mine work

"Ore is fed from a stockpile to the grinding circuit by conveyor, where it is ground by a SAG mill and a ball mill operating in series. Ore then passes to the flotation circuit where lead and zinc concentrates are produced."

That basically means that no zinc was produced in the last 11.5 days.

- So, some numbers:

This mine produces 500000 tonnes/year
Stopped 11.5 = 500000/365 * 11.5 = 15700 tonnes that they stopped producing.

15700 * 1570 (forecast assumption) = 24.6 millons

I would like to see where your numbers are coming from.

Regards,

WBII
 
Re: ZINIFEX..ZFX

Warren Buffet II said:
Well, I do not see where your numbers are coming form either. I'll give you some of my points, I'll give you the reference so you don't say I am making it up:......................
..................
........
I would like to see where your numbers are coming from.

Regards,

WBII
Click to expand...

Good to see some figures and sources WBII, nice explanation by Smurf in the earlier post too, I doubt the figures will stop Chicken's 'enthusiasm', it's just misleadnig imo when a thread gets bumped up everyday as if it was skyrocketing. Just my opinion, it'll be good for the reputation of ASF to maintain high quality posts.
 
Re: ZINIFEX..ZFX

City investment just big recomendation on Zinifex...makes you wonder why people are short selling..ah well good buying oportunity... :2twocents
 
Re: ZINIFEX..ZFX

ZFX will be up again soon after all those suckers sold out....Copper,Aluminium,Zinc prices forecast by CITIGROUP..MARCH(BLOOMBERG) Zinifex LTD the world 2nd biggest ZINC miner may be earning $210 million after tax 10% higher than previous forecast CITIGROUP said. ZINC prices in the first half may be 9% higher than prvious forecast at 60cents a pound and nickel may be 8% higher at $6.75 a pound the report said
 

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