ZFX - Zinifex Limited

[Nicks]

what i meant to include was that i already have bhp, wdc and amp (the last two since i was alot younger and bhp as of last week)

zfx will act as my speculative/riskier share...

have they found anymore sustainable mines???

as i understand the smelting operation with another miner would create increased revenue???

and why is the dividend much higher than most considering the price of the share at this present time???

cheers

So Berger King, did you get in on ZFX as you were thinking? you'd be pretty happy with your decision about now i'd expect.

 

[Nyden]

Am surprised it dropped 1.56% today, zinc prices rose afterall. Perhaps some profit-taking? Guess it couldn't keep up that 2-3% rise a day forever

 

[uhu]

Well, some miners lost 1-2% friday in Europe and US. For ex. Umicore -1,4, Freeport -1,8...and it would have bigger if markets didn t close...so I think correction will continue at the beginning of the next week.
But! I think too it's normal....after about 14% gain in 2-3 weeks...

 

[roland]

Looks like zinc is getting back it's shiny lustre. The run up to dividend date should help as well.

LME wharehouse stocks are quite low as well.

 

[roland]

Great close on Zinifex today. Pre-Close 18.65, close at 18.78. Should do a good run up as ex div gets closer. Assuming the LME Zn price doesn't go hay wire

 

[uhu]

Yes, it was not bad.
But, if we compare ZFX (and other aussie miners) with american ones (Freeport, Teck, Southern Copper -i know, it's latin-american), growth was week - I have waited at least 2%.

So, anyone have infos about why was (is) it?

 

[roland]

Personally, I think ZFX having sold it's smelting business has reduced the value of the company. There appears that a surplus of Zn will reduce prices. The surplus also increases the cost of smelting ... not sure why, but Kitco reports that smelting costs are to increase.

Zinifex needs a good discovery with Drake to grab some more attention. The high dividend yield keeps people around, but I understand that the yield is likely to be hard to maintain.

I wonder if ZFX sharholders will get in on the Nyrstar IPO ???

 

[vishalt]

Personally, I think ZFX having sold it's smelting business has reduced the value of the company. There appears that a surplus of Zn will reduce prices. The surplus also increases the cost of smelting ... not sure why, but Kitco reports that smelting costs are to increase.

Zinifex needs a good discovery with Drake to grab some more attention. The high dividend yield keeps people around, but I understand that the yield is likely to be hard to maintain.

I wonder if ZFX sharholders will get in on the Nyrstar IPO ???

I don't see many individual investors going out of their way to create a European trading account to buy Nyrstar to be honest.

Selling the smelting business reduced the value yeah, but Zinifex can't be in a more perfect position at the moment.

It's making a very attractive takeover target by a global carnivore like BHP, Teck Cominco, Xstrate, AA, CVRD or even Oxiana - and even if nothing happens for a while Zinifex can skyrocket if it discovers a big mine.

 

[roland]

I don't see many individual investors going out of their way to create a European trading account to buy Nyrstar to be honest.

So, Nyrstar won't be listed on the ASX???? That would be a real shame ....

Selling the smelting business reduced the value yeah, but Zinifex can't be in a more perfect position at the moment.

...but will this position benefit ZFX shareholders? I am not sure how the Nyrstar smelting revenue affects the Zinifex income.

It's making a very attractive takeover target by a global carnivore like BHP, Teck Cominco, Xstrate, AA, CVRD or even Oxiana

well, we have lived through takeover rumours before, apart from the recent mine life expansion, I think Zinifex really need to find another Century like resourse - maybe with Drake ??, before it starts looking attractive again. Maybe seperating the smelting business is their insurance for longevity.

- and even if nothing happens for a while Zinifex can skyrocket if it discovers a big mine.

Zinifex has been the jewel in my crown of long term holdings and I have been dismayed with the recent broker downgrades and the propects of lesser dividend potential - Really looking for some good news!!

 

[vishalt]

Yeah Zinifex used to be a big part of my portfolio till the sub-prime meltdown caused a flight to big cap stocks.

I can still remember when it was consolidating @ $9 and giving out that huge 70c dividend at just $13!

 

[michael_selway]

I don't see many individual investors going out of their way to create a European trading account to buy Nyrstar to be honest.

Selling the smelting business reduced the value yeah, but Zinifex can't be in a more perfect position at the moment.

It's making a very attractive takeover target by a global carnivore like BHP, Teck Cominco, Xstrate, AA, CVRD or even Oxiana - and even if nothing happens for a while Zinifex can skyrocket if it discovers a big mine.

Its still nod bad

Earnings and Dividends Forecast (cents per share)
2007 2008 2009 2010
EPS 274.1 233.8 174.2 119.2
DPS 140.0 130.0 100.0 60.0

thx

MS

 

[vishalt]

How is it "still not bad"?

If you're going by those Commsec forecasts - the profit/dividend expectations are going downstairs... not up.

What I don't get it how all analysts are predicting an over-supply of Zinc yet the stocks at the LME have almost halved in several months, it makes no sense really.

Anyway after thinking a bit more about Zinifex being in a perfect position - its mines don't have a long life span. There's only 4, they're all Zinc with some lead/silver production, and the life-span is very low, Century is the only decent mine but certainly nothing compared to the assets the big cap diversified companies own.

So what's the point of merging or taking over Zinifex if it won't add long-term value?

So unless Zinifex makes a big discovery in the next 2-3 years (if it doesn't get taken over by then) I wouldn't be touching this thing with a 50 foot pole!

Huge risk stock at the moment so this'll be an interesting story!

 

[uhu]

How is it "still not bad"?

If you're going by those Commsec forecasts - the profit/dividend expectations are going downstairs... not up.

What I don't get it how all analysts are predicting an over-supply of Zinc yet the stocks at the LME have almost halved in several months, it makes no sense really.

Anyway after thinking a bit more about Zinifex being in a perfect position - its mines don't have a long life span. There's only 4, they're all Zinc with some lead/silver production, and the life-span is very low, Century is the only decent mine but certainly nothing compared to the assets the big cap diversified companies own.

So what's the point of merging or taking over Zinifex if it won't add long-term value?

So unless Zinifex makes a big discovery in the next 2-3 years (if it doesn't get taken over by then) I wouldn't be touching this thing with a 50 foot pole!

Huge risk stock at the moment so this'll be an interesting story!

Zinifex's CEO or an other boss said in the last week they want to acquire a copper miner, so, if this will go, ZFX won't be a one-metal-miner (yes, there is lead also now, I know).
And there is the Nunavut project f.e.

 

[vishalt]

Zinifex's CEO or an other boss said in the last week they want to acquire a copper miner, so, if this will go, ZFX won't be a one-metal-miner (yes, there is lead also now, I know).
And there is the Nunavut project f.e.

Where does it say Zinifex wants to acquire a copper miner? Please link me as I can't track it in the latest press releases.

Anyway for those interested, Zinifex has a really nice website outlining their projects - http://www.zinifex.com/what_we_do/expdevMap.aspx. A lot of them are still in feasibility/study phases but geez they have a lot of potential to find some treasure somewhere.

 

[uhu]

Where does it say Zinifex wants to acquire a copper miner? Please link me as I can't track it in the latest press releases.

Anyway for those interested, Zinifex has a really nice website outlining their projects - http://www.zinifex.com/what_we_do/expdevMap.aspx. A lot of them are still in feasibility/study phases but geez they have a lot of potential to find some treasure somewhere.

For example:

http://www.smh.com.au/news/business...quisition-trail/2007/10/04/1191091276471.html

But I have read it an other article first. And this other one said ZFX wants to enter the gold sector also...
Gold....copper...what can it be? Oxiana maybe? They say they search smaller companies....but (????)

use goggle news...

 

[BankRoller]

Some interesting news and snippets wrt to PNA, OXR and ZFX

Interesting quote in the media recently with respect to Oxiana, ZFX and PNA. All mentioned in the one breath. "Miner Oxiana gained 5c to $3.79 after negotiations for a merger with Zinifex reportedly stalled. Zinifex dropped 11c to $18.29. Pan Australian Resources, which is developing a copper and gold mine in Laos, added 1.5c to 81c. Pan Australian was rated "outperform" in new coverage by RBC Capital Markets analyst Paul Young, who set a price target of $1.10 on the shares." - Resources bounce leads market gain - SMH Oct 6th '07.

Another media release:
"Zinifex said it was targeting mid-tier copper assets which contained at least 1 million tonnes of metal for an annual production rate of 100,000 tonnes a year." - Zinifex out to conquer new territory - The Age Oct 5th '07.

We can see from recent media releases that ZFX is after a Copper producer, so if OXR has fallen through. Who is next??? Just trying to put two and two together with these recent media releases.

Any other thoughts?

 

[uhu]

Hey, aussies,

Well, I would like some information...I can't have so much in Hungary.

I have read some investors dissapointed bacause the Nyrstar IPO, so, that's why ZFX's price fall from the end of the lest week (plus bad news from US).

So, have you got some info's about other reasons?


Thanx

Sorry, my English is not correct, I know, I try...

 

[Nyden]

Hey, aussies,

Well, I would like some information...I can't have so much in Hungary.

I have read some investors dissapointed bacause the Nyrstar IPO, so, that's why ZFX's price fall from the end of the lest week (plus bad news from US).

So, have you got some info's about other reasons?


Thanx

Sorry, my English is not correct, I know, I try...

To simplify - a lot of resource stocks have gone down; because the price of base metals has dropped quite considerably. We're having a bad week, obviously

Reasons, well - negative news I guess



Edit:

To be honest though - I see this Nystar issue as a great opportunity - if the announcement comes on what price / amount they managed to sell it for, comes out fantastic - that will push the price up quite well imo. If there's a surplus of cash - higher dividend for next year. They'll also apparently be using this 1b+ to buy into copper; thus diversifying their holdings.

I believe the last week of October could be a fantastic week for the SP - with not only the information on the Nystar IPO being released; but also the fact that many folks will be buying in for the div.

 

[drmb]

Hey, aussies, Well, I would like some information...I can't have so much in Hungary. I have read some investors dissapointed bacause the Nyrstar IPO, so, that's why ZFX's price fall from the end of the lest week (plus bad news from US). So, have you got some info's about other reasons? Thanx Sorry, my English is not correct, I know, I try...

Your English is not so bad! It's a very forgiving language. Put www.kitcometals.com on your favourites and watch base metal and U prices. Also see http://www.reuters.com/article/marketsNews/idUKL178840320071017?rpc=44 for reasons for fall in zinc and lead stocks. These miners and producers are very volatile, treat them with care!

 

[Brengun]

There is only one real reason why ZFX shareprice dropped by $1 in a few days and that is because I bought a couple.