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this article is a month or so old, but maybe theres something happening....

Zinifex cashed up and eyeing options
Source: MELBOURNE AAP
Date: 2004-Nov-22 07:28 PM

Zinc and lead miner Zinifex said it was cashed up after a strong first quarter and looking at ways to expand its business and return value to its shareholders.

The company, formed out of the assets of the defunct Pasminco, generated more than $60 million in surplus cash in the 2005 first quarter.

Zinifex chairman Peter Mansell told shareholders at the annual general meeting in Melbourne that if the company met its 2005 forecasts as expected, it should have more cash in the bank than it owes to others.

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With capital expenditure for 2005 expected to be around $290 million, there was plenty of money for growth options, Mr Mansell said.

He said Zinifex, was mindful of its background, and would be very conservative in the decisions it made.

The group was not looking to take risks or move away from its core competencies of mining and smelting.

However, he said the company would look at diversifying its commodity portfolio and would consider expanding its recycling interests.

A strategic review to consider all options was expected to conclude in early 2005.

"The guiding principle underpinning any choices we might make will be ensuring the best returns to shareholders," Mr Mansell told the meeting.

"We are all too well aware of the many cases in the resources industry where bold plans have destroyed shareholder wealth."

Zinifex outperformed expectations in its first quarter of trade since listing on the Australian Stock Exchange in March, reporting a profit for the period four times company forecasts.

Mr Mansell said the company was track to meet its upgraded 2005 earnings forecast of $102 million.

He said the miner intended to return cash surplus to the needs of the business to shareholders, but the form in which this would take place was yet to be decided.

While a dividend would be considered, capital returns and a share buy-back were considered the most favourable means at present, he told reporters outside the meeting.

Zinifex chief executive Greig Gailey said that while lead had been a star performer in the current commodity cycle, zinc had continued to under perform most other metals.