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dubiousinfo said:
**PLEASE NOTE**
There is a typo in the post above. the word "investment" should read "installment". It's the installment warrants that give you the dividend.
Sorry
dubiousinfo said:If you go to the ASX site you can look up all the warrants for ZFX.
To get the dividend you generally want the Investment Warrants.
The type of warrant is indicated by the 4th letter of the code. The letter to indicate investment warrants is an "I"
For example the Warrant - ZFXIZ1 - is an investment warrant that expires on 24 Jan 2007 with an exercise price of $7.00.
Note the I in the 4th letter ZFX I Z1
However you should ensure you fully read the Product Disclosure Statement (PDS) &/or speak to the issuer, prior to investing to ensure you get the entitlement.
Hope this helps
Investor
Global shortage fuels zinc miner's dividends growth
David Potts
576 words
17 September 2006
Zinifex is riding the commodities boom, David Potts writes.
WHATEVER it is you do with zinc, other than take it as a vitamin supplement, a lot must want it.
Even after last week's correction, zinc prices have more than doubled in a year, and have been responsible for the greatest corporate comeback since Burns Philp. Zinifex was forged out of the ruins of Pasminco two years ago and, riding the commodities boom, has hardly looked back.
As well as one of the sharemarket's standout successes, it has become a big dividend payer as well which is unusual for a resource stock. Well, admittedly it's been all rather sudden.
Zinifex bumped its fully franked dividend (it goes ex on October 16) from 4 cents a year ago via an interim of 10 cents to 70 cents a share.
In the same period its share price has swung from below $2.90 to a high of $13.54 four months ago.
Just as wild are broker valuations, which range from a mere $6 up to $14 a share. That's some divide. It seems to have settled at around $10.50 to $11.
The main reason for the uncertainty is that the share price moves in tandem with the London zinc price, a daily feast of speculative buying, selling and rumour mongering.
The other is that its Century mine, the world's biggest, will run out of zinc in 10 years.
So what's zinc used for?It turns out to be pretty basic - things like galvanising steel, rust proofing, brass, batteries and to make USone cent coins - which is an advantage because it makes it irreplaceable.
Better still there's a global shortage of the stuff because exploration stopped in the late 1990s when the price of zinc was in the doldrums.
One broker says Zinifex's profits would rise 16 per cent this year and 50 per cent next year just on the current price of zinc.
And while we may be at or near the top of the commodity price boom it would take a global recession for a crash in zinc prices. Even then it would discourage exploration for other mines anyway.
That suggests a sweet spot of stable to rising demand and declining supply for years to come.
Mind you the fact that it doesn't hedge the zinc price has worked brilliantly, but it also means a huge downside were things ever to go the wrong way.
Funnily enough, the shortage of zinc could finish up Zinifex's problem too. Century is expected to become even more profitable the closer it nears its close, but then that's it.
Zinifex is planning to double its exploration spending through partnerships with junior miners, and has high hopes for Dugald River and Rosebery.
Meanwhile its four smelters are going gangbusters. The two stars are Holland and Hobart, presumably for different reasons.
Zinifex is also shedding staff, something the market always appreciates. And it's cashed up.
ADVANTAGES
· Has world's biggest zinc mine
· Potential takeover target
· Debt free
· Generous dividend
· Output not hedged
DISADVANTAGES
· Century mine runs out in 2016
· Top of commodity cycle
· Volatile share price
· Analysts divided
· Rising costs
VERDICT
The biggest share price gains are behind it. One to hold or buy on market bad-hair days
rwkni1 said:Hey Kipp,
Nothing material has happened with Zinifex, but base metal prices have been tracking oil and gold lower. Oil prices have come off sharply as some of the geopolitical premium comes out of the market - supplies have been ample for some time but it now seems as though the market is becoming more comfortable with the Iran situation. Ironically, lower oil prices should be good for metal demand and zinifex, but prices have dropped as instos and hedge funds pull thier cash out of commodities on the back of lower oil prices. Zinc stocks have continued to drop in an almost linear fashion and i there is no sign of this slowing, so i think fundamentally the zinc market looks stronger than ever. As for zinc prices, they are down, but have hardly tanked. They're now about US$1.50/lb, down from about US$1.70/lb at the start of the month. Nothing to worry about at all, i think a great opportunity to get in on ZFX if you're a believer in the zinc story. I think its still trading on a P/E of about 3.5 times 2007 earnings. Cheap!!
michael_selway said:Updated again esp 2009
Earnings and Dividends Forecast (cents per share)
2006 2007 2008 2009
EPS 219.9 300.8 228.6 143.0
DPS 80.0 140.0 89.5 60.0
thx
MS
I think it is mostly to do with zinc prices coming off the levels that they currently are. Almost all analysts are predicting zinc prices to peak in 2007 and decline from 2008 onwards. (I remember reading this in a broker report a while ago so it might be slightly different now). But it is because analysts have traditionally been conservative with commodity prices and this has been evident in the past few years, with continual earnings upgrades as prices continued to rise.YELNATS said:Maybe it's a silly question but why do EPS & DPS forecasts tail off in 2008 & 2009? Is it because the company is just not prepared to forecast too far into the future given the volatility of world zinc prices, or do they think prices will fall to this degree, or do they expect their production output to decline, or all of the above?
Regards. YN
YELNATS said:Maybe it's a silly question but why do EPS & DPS forecasts tail off in 2008 & 2009? Is it because the company is just not prepared to forecast too far into the future given the volatility of world zinc prices, or do they think prices will fall to this degree, or do they expect their production output to decline, or all of the above?
Regards. YN
3 veiws of a secret said:Geee why is my portfolio drifting to the resources sector? Ok I've taken up a position on ZFX....when shares pitstops @ $10.60 ....then Murray Walker stand back. Zinc might drive me crazy
YELLIE, I think even the Chairman of ZFX would have to agree that future profits would not be able to match those of 2006 and 2007...YELNATS said:Maybe it's a silly question but why do EPS & DPS forecasts tail off in 2008 & 2009? Is it because the company is just not prepared to forecast too far into the future given the volatility of world zinc prices, or do they think prices will fall to this degree, or do they expect their production output to decline, or all of the above?
Regards. YN
Nicks said:If you are an idiot, then dont buy this stock.
It is common knowledge that the ready supply of Zinc is getting lower. Therefore supply and demand will dictate that Zinc and consequently ZFX will go up in price. Considering the excellent dividends this company pays it wont be long before someone realises this and the stock moves toward $20 by the end of the year.
KippKipp said:Isn't SP about to hit (or hitting) Resistance at ~$12.20? It has been to $12 3 times before this year (and has gone below 10 since...) I agree with you, I think it still has further to go, but I'm waiting for a retracement back to 11.50 before I get in once again (almost got there yesterday at 11.65).
rederob said:Kipp
Resistance at $12.20-12.25 range, and a very interesting one cent gap at $13.01 to 13.02.
I still think $15 by year's end is well in range.
Coming weeks are likely to see good momentum northwards.
ZFX closed strongly above this resistance at $12.48. Are you still looking for a pullback to $11.50 or are you planning to get in on the next pullback, however large it may be?Kipp said:Isn't SP about to hit (or hitting) resistence at ~$12.20? It has been to $12 3 times before this year (and has gone below 10 since...) I agree with you, I think it still has further to go, but I'm waiting for a retracement back to 11.50 before I get in once again (almost got there yesterday at 11.65).
imajica said:Zinc hits new highs at $1.71 a pound - I think we might see $2 sooner than expected.
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