Companies: ZOX   

Shares in ZincOx Resources, floated on Aim 10 days ago at £1, have plunged to 68p already on thin volume, which the company's advisers suggest could reflect pre-float punters, who bought at well below the issue price, cashing in some of their chips. ZincOx is the new vehicle of geologist Andrew Woollett, former head of Reunion Mining, which he successfully sold to Anglo American. It intends to use new techniques to produce zinc at a cost of 22 cents a lb, well below even today's depressed zinc price, from deposits in the Yemen and elsewhere. With the aid of broker Charles Stanley, ZincOx raised £3m at the time of the float. Last year, some favoured investors bought in at 25p a share and in April the company raised more funds at 62.5p. It is suggested the company could soon have some encouraging news about its Tsumeb tailings project in Namibia. Longer term, all depends on whether the new zinc treatment process works as hoped - and whether hitherto pro-Western Yemen keeps out of the hands of Islamic fundamentalists. At the time of the float, the Mining Column suggested short-term investors should avoid the shares, but that they could still prove a rewarding long-term gamble. That view still applies.

ZincOx	AIM	£24.05m	31.00p	-0.50p
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Other company articles:
ZincOx boosts profits			28/04/2008
ZincOx wins recycling permit			29/02/2008
ZincOx raises £20 million			21/01/2008
ZincOx clinches £61 million finance deal			14/01/2008
Fund Manager Focus by Pauline McCallion			09/08/2007