News

November 05, 2007

Zeehan Zinc Appears To Have Turned The Corner At Last.

The share price of Zeehan Zinc has fallen steadily from when it listed on AIM in March, raising £9 million at 19.5p a share. In the early days of trading it hit 22p, but since then it has been downhill all the way until last week. Not surprising, really, as the only real news since then have been a couple of updates in May and August and a further funding to raise £1.98 million at 15p per share in the summer. According to the chairman Michael Roberts the company has been in a close period from August until the recent announcement of the interim results. All AIM companies have that problem but if they have a bit of news that could be price sensitive it has to be released immediately.

In this case we reported in our round-up of events last week that “Zeehan Zinc advanced 12 per cent to 13.75p on preliminary results detailing progress with its assets in Tasmania. Zeehan expects to begin commercial production at its Zeehan zinc-lead mine before the end of the year.” The interim results are pretty long  and there are several bits of information that could be interpreted as price sensitive, so why did the company not maintain a newsflow? Michael Roberts explains that the...