Zinifex Limited

From IntFX

See also: ZFX for realtime information.

Zinifex is a mining, exploration and development company focusing on base metals such as zinc, copper, silver, gold and lead as well as some niche metals and nickel. The Company operates two mines: Century Mine, with zinc and lead resources in Australia, and Rosebery Mine, with zinc, lead, copper, silver and gold resources in north-west Tasmania.

The Century Mine is an open cut mine which produces zinc and lead concentrate. It is the largest zinc mine in Australia based on concentrate production. Apart from the mine operation at Lawn Hill, it also operate an associated concentrate dewatering and ship-loading facilities at Karumba, on the Gulf of Carpentaria.

The Rosebery Mine on Tasmania's North West Coast is an underground mine.

As of March 31, 2006, the Company’s total mineral resources were 117 million tons of ore comprising of 12.6% zinc, 1.9% lead and 48 grams per ton of silver. Ore reserves were 54.7 million tons comprising 11.6% zinc, 1.3% lead and 31 grams per ton silver.

The Company is currently exploring in more than six countries worldwide. It is conducting a feasibility study for its Dugald River deposit in Australia and a pre-feasibility study for its Izok Lake deposit in Canada. Zinifex is also actively exploring poly-metallic deposits and has announced global exploration joint ventures in Mexico, Sweden and Tunisia in December 2006.

The Company is headquartered in Melbourne, Australia and is listed on the Australian Stock Exchange under the ticker ZFX.

[edit] History

Zinifex was listed on the Australian Stock Exchange on 5 April 2004. The Company has announced de-merger of zinc smelting and alloying operations in December 2006 to increase focus on its core business. The de-merged business was joined with Umicore, a material technology company, in a joint venture in September 2007 creating a new business, Nyrstar.

The Company acquired Wolfden Resources, a Canadian exploration and development company in June 2007.

[edit] Strategy

Zinifex focuses on the discovery, development and monetization of mineral reserves in order to create long term value for its shareholders. The Company is working towards building a strong project pipeline to create a reserves replacement portfolio beyond life of Century and Rosebery mines. The Company has created a niche focus on high margin, long life mines having resources such as zinc, copper, silver, gold and lead as well as certain niche metals and nickel.

[edit] Financial and operational performance

Zinifex’s external sales increased 50.5% to A$4,608.6 million in 2007 from A$3,062.7 million in 2006. During the same period, the Company’s EBITDA increased 71.9% to A$2,037 million and net profit increased 23.6% to A$1,334.8 million. The Company also witnessed an improvement in its EBITDA margin which increased to 44.2% from 38.7% in 2006; however its net profit margin declined to 29.0% from 35.3% in 2006.