ZincOx Resources PLC Performance Improvement at Korean Recycling Plant (9209S)
14 July 2015 - 4:00PM
UK Regulatory
TIDMZOX
RNS Number : 9209S
ZincOx Resources PLC
14 July 2015
14th July 2015
ZincOx Resources plc
("ZincOx" or the "Company")
Performance Improvement at Korean Recycling Plant
ZincOx (AIM:ZOX), developer and operator of one of the largest
Electric Arc Furnace Dust ("EAFD") recycling facilities in the
world, is pleased to announce continued improvement in the
operation of its wholly owned Korean Recycling Plant ("KRP").
The key operating parameters for KRP for the half year ending 30
June 2015 are presented below together with results from the
preceding half year:
H1 2015 H2 2014
EAFD treated (tonnes) 77,485 58,569
Zinc in concentrate sold
(tonnes) 18,291 14,103
Zinc price (US$/t) 2,136 2,278
Revenue (US$ m) 22.2 20.0
EBITDA(1) (US$ m) 2.9 0.1
Compared to the previous half year, in the first half of 2015
throughput increased by 32% and the production of zinc in
concentrate by 30%. However, the zinc price fell by 7%,
consequently zinc revenue increased by only 11%. The Company has
demonstrated that the plant is capable of being operated at
nameplate capacity on a daily basis but as a result of cut backs in
Korean steel production, there has been a reduction in the amount
of EAFD generated in Korea which has in turn restricted throughput
at KRP and for much of the half year the plant ran at only about
80% of capacity. Notwithstanding this limitation, KRP generated
almost US$3 million of EBITDA for the period.
http://www.rns-pdf.londonstockexchange.com/rns/9209S_-2015-7-13.pdf
In order to address the shortfall in feed material, the
importation of EAFD is being arranged. In the meantime the plant
will be able to run at close to full capacity by drawing down EAFD
stockpiled during the recent remediation. The first imports are
expected to arrive in August 2015 and build up to target levels by
the end of October 2015.
Production was suspended on the 26 June to carry out routine
maintenance on the heat exchangers, these repairs have been
completed and production will resume later today.
Andrew Woollett, CEO, said "These figures demonstrate the
dramatic turnaround in the performance of our Korean operation and
we expect to see a significant further improvement as we reach full
daily production through the import of feed stock."
(1) Earnings before interest, tax, depreciation and amortisation
(in accordance with the revenue recognition policy of the Company
and adjusted to exclude foreign exchange gains and losses)
For more information please contact:
Tel: +44 (0) 127 645
ZincOx Resources plc 0100
Andrew Woollett, Chief Executive Officer
Peel Hunt LLP (Nominated Adviser and Tel: +44 (0) 207 418
Joint Broker) 8900
Daniel Harris
Euan Brown
finnCap Limited (Joint Broker) Tel: +44 (0) 207 220
Joanna Weaving 0500
Christopher Raggett
Tavistock Communications (Financial PR) Tel: +44 (0) 207 920
Simon Hudson 3150
Nuala Gallagher
This information is provided by RNS
The company news service from the London Stock Exchange
END
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