News

April 30, 2008

Healthy Profits Provide Underlying Support As ZincOx Advances Its Recycling Plans

By Alastair Ford

Andrew Woollett is sounding fairly upbeat as he phones in from the provinces to talk about Zincox’s latest set of financial results, for the year to December 2007. As with many small companies in the mining and metals space, the full picture isn’t really apparent from the financials. Zincox has no operating mines, and indeed no revenue of any kind. But Zincox’s results do present at least one cheery proposition: the company has booked a profit before tax of £15.4 million.

This is based entirely on a choice piece of business Andrew Woollett did a couple of years ago, when he bought the Shaimerden zinc mine in Kazakhstan for a bargain price, and then sold it on again, into a rising zinc market. And, as any sensible deal-maker would, he was careful to make sure Zincox retained an interest even after operational control had passed to the buyers, Kazzinc. So, in a slightly complex deal, which Mr Woollett hesitates to call a royalty agreement, Zincox gets a share per...