3SOF

1. Profile

EuroZinc Mining Corporation (EZM). The Group's principal activity is to explore, extract, process and reclamation of base metal mining. The Group explores and produces copper from the Neves-Corvo copper mine, located near Castro Verde, Portugal. The Group is also focused on the development of the Aljustrel zinc project in Portugal. On 18-Jun-2004, the Group acquired Sociedade Mineira De Neves-Corvo, S.A .

2. Technical Analysis

2.1. Long Term Chart

(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=14979;image)

I still don't know if that gigantic gap was a real thing or not, but I'll soon find out (probably this isn't exactly the same company, we'll see).

2.2. Medium Term Chart

(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=14980;image)

Nice medium term ascending trend. Volume started to pick up in 2006. I guess the company was at OTCBB and now it is in AMEX and that helped liquidity (and candlestick charts  ;D) (yes, that was it: EuroZinc to Begin Trading on the American Stock Exchange (http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BF513CBA3%2DBE8E%2D48F7%2DBA0D%2D3EAA82DA7378%7D&siteid=mktw&sid=146606&symb=)

2.3. Short Term Chart

(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=14981;image)

The stock yesterday came down to touch TL2 and bargain hunters came in to bid the price higher. The stock may consolidate some, but the short and medium term trends are definitely bullish.

3. Fundamental Analysis

3.1. Number of Shares Outstanding

(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=14982;image)

I only have fundamental data for the last 3 quarters, so probably this is a different company from the prior one (actually I remember of looking at EZM in January 2004 at about $0.40 per share - strange chart)

The company has a lot of shares outstanding (543 million, market cap of $771M), it is strange average volume isn't higher.

3.2. Working Capital

(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=14983;image)

The current ratio doesn't seem very favourable, but underneath this ratio I see total liabilities coming down from $299M in Q1, to $253M in Q2 to $231M in Q1. Reduced debt is a positive development.

3.3. Revenues

(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=14984;image)

Revenues are growing. I have to study some more to understand how these production numbers transfer into revenue numbers: EuroZinc Announces Fourth Quarter and 2005 Operating Results (http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BD7F4554B%2D459D%2D4510%2D9D77%2D8AD55308761B%7D&siteid=mktw&sid=146606&symb=)

But if we consider how copper prices are rising, there's no doubt revenues increased in the 4th quarter:

(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=14985;image)

3.4. EPS

(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=14986;image)

The 4th quarter estimate is based on an average copper price 12% higher than the 3rd quarter. This means the company probably earned 18 cents per share in 2005. Its share price is $1.42, so trailing earnings multiple is 7.88 (quite cheap).

4. General Overview

Let's read some more information about EZM:

«The net cash cost per pound of copper sold for 2005 was US$0.77 compared to US$0.64 in 2004, reflecting the higher mill feed grade in 2004 and the increased treatment and refining charges in 2005. Despite commodity price increases during the year, particularly steel and oil based products, the overall operating cost per tonne of ore milled was marginally reduced in 2005. This was achieved by an 8% increase in the mill throughput, cost control measures exercised at the mine site and a favourable move in the Euro to US dollar exchange rate.

"Management is pleased with its first full year of operating performance at Neves-Corvo and is looking forward to additional improvements in the coming years," said Joao Carrelo, Managing Director of Somincor, the wholly owned subsidiary of EuroZinc and the owner/operator of the mine. "We are particularly pleased with the progress to date in preparing for zinc production at Neves-Corvo in the second half of 2006, and the accelerated and successful exploration program that got underway late in 2005."»

I don't have zinc prices in stockcharts.com, but they're probably rising a lot too.

EuroZinc Announces Secondary Distribution (http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B6DB32A6C%2DDE2B%2D492E%2DB755%2DEB894F795E6B%7D&siteid=mktw&sid=146606&symb=)

Some investments funds want to sell about 13.5% of the company. Not a great problem with this, and just a little increase in the number of outstanding shares: «to exercise warrants it holds to acquire an additional 1,400,000 shares of EuroZinc.» This is minimal.

You know I live in Portugal so I've seen this company on the news. These mines in Alentejo (the poorest region on EU) were closed for many, many years. Some of the mines are now a tourist attraction for historic reasons ;D (their owners made a lot of money in the second World War, selling Tungsten to the germans and allies (Portugal was a neutral country at the War, that's why we didn't get the Marshall plan and that's part of the reason we didn't develop as much as other countries after the war - but that is another story)).

Well, the company has been on the news for very good reasons. It is hiring people to work on the mines, expanding production capacity and it is studying the potential to open/acquire other mines in Portugal. These mines were shut down because raw material prices were very depressed. But now, with these increases in  raw materials and commodity prices, highly profitable investments can be made.

Even on a trailing basis EZM seems very attractive to me. Earnings growth can be outstanding going forward, because I don't think copper prices will come down soon. There can be a 20 year bull market in commodities, like in the 60's and 70's (Jim Rogers defends that, among others).

China, India and South America economies are booming and that's the main explanation for the commodities bull market.

I believe EZM should be bought today for the Stocks on Fire Portfolio. That's what I'll do, around the open, 10% of the portfolio.

Link list:

1) Analysis
http://www.stockhouse.ca/comp_info_tech.asp?view=tech&Displaycurrency=&symbol=EZM&table=list

2) Financials
http://www.stockhouse.ca/comp_info_financials.asp?view=financials&Displaycurrency=&symbol=EZM&table=list
3) Short update  ;)
EZM: Short Interest UP 100.0% to 18.0K in Jan 2006
Friday , January 20, 2006 16:15 ET
According to new short interest data from AMEX, short interest for Eurozinc Mining Corporation (AMEX: EZM) INCREASED 100.0% to 17,990 shares for the month ended mid-January, 2006.

SYMBOL    DECEMBER     JANUARY     CHANGE       %CHANGE  DAYS/COVER
--------   -------------   -------------   -------------  ------------  ----------
EZM                    0          17,990         +17,990      +100.00%           1

Based on EZM's 20-day average daily share volume of 367,794, it would require approximately 1 day(s) of buying to cover this short interest.

4)
Thu Feb 9, 2006
Share Structure
Shares Issued: 543,821,610

Outstanding:
Options: 18,241,836
exercisable at various prices from $0.10 to $0.95

Warrants: 8,829,402
133,750 exercisable at $0.75
8,695,652 exercisable at $0.60

Fully Diluted: 570,892,848

5)
January Newsletter:
http://www.eurozinc.com/i/pdf/January_News_Letter.pdf

6) EZM presentations:

Investor presentation (check slides 40 to 45 ):
http://www.eurozinc.com/i/pdf/Copper_Conf_Jan_2006.pdf

EZM company sum. (45 slides):
http://www.eurozinc.com/i/pdf/EZM-ppt.pdf

7) Annuals

http://www.eurozinc.com/s/Annuals.asp

Maybe I read your link wrong la-onda, but the stockhouse info showed that EZM closed at 1.69.  I had that it was at 1.46 yesterday. 

this was the canadian stock price.
please switch to the AMEX price:
http://www.stockhouse.ca/comp_info.asp?symbol=EZM&table=AMEX

EZM seems to be a great long term investment but as always with these commodity stock it pays off to look at the commodity.

As David rightly points out Copper has had a fantastic run based on the fact that demand is outstripping supply. We had however moved into overbought territory and it seems like copper is pulling a bit back.

I will keep an eye on Copper and be on the buying side if I feel we have hit the bottom.

Mike

Commodity stocks selling off today. Copper prices might be falling.

http://www.bloomberg.com/apps/news?pid=10000086&sid=aTrjsIE0ZoMQ

(edited post with new article)

EZM: RBC Capital Starts @ Sector Perform; Analyst Notes
Friday , February 10, 2006 10:11 ET
Issuer: Eurozinc Mining Corporation (AMEX: EZM)
Analyst Firm:  RBC Capital Markets
Ratings Action: INITIATE
Current Rating: Sector Perform

Analyst Comments: The firm sets their target price to C$1.60.

Quote from: Michael on February 10, 2006, 12:00:27 PM
EZM seems to be a great long term investment but as always with these commodity stock it pays off to look at the commodity.

As David rightly points out Copper has had a fantastic run based on the fact that demand is outstripping supply. We had however moved into overbought territory and it seems like copper is pulling a bit back.

I will keep an eye on Copper and be on the buying side if I feel we have hit the bottom.

Mike

Is it EZM great for long term investment?
Ok, i'm IN (long side) ;)

VectorVest Stock Analysis of Eurozinc Mining as of 2/10/2006


Business: EUROZINC MINING CORP, (EZM) Explores, acquires and develops mineral properties The company's primary focus is the Aljustrel base metal project in Portugal The company plans to produce zinc, lead and other minerals
Business Sector: EZM has been assigned to the Mining Business Sector. VectorVest classifies stocks into over 200 Industry Groups and 40 Business Sectors.
Industry Group: EZM has been assigned to the Mining (Other) Industry Group. VectorVest classifies stocks into over 200 Industry Groups and 40 Business Sectors.
 

 
Value: Value is a measure of a stock's current worth.  EZM has a current Value of $2.86 per share. Therefore, it is undervalued compared to its Price of $1.52 per share.  Value is computed from forecasted earnings per share, forecasted earnings growth, profitability, interest, and inflation rates. Value increases when earnings, earnings growth rate and profitability increase, and when interest and inflation rates decrease. VectorVest advocates the purchase of undervalued stocks. At some point in time, a stock's Price and Value always will converge. 
   
RV (Relative Value): RV is an indicator of long-term price appreciation potential. EZM has an RV of 1.58, which is excellent on a scale of 0.00 to 2.00. This indicator is far superior to a simple comparison of Price and Value because it is computed from an analysis of projected price appreciation three years out, AAA Corporate Bond Rates, and risk. RV solves the riddle of whether it is preferable to buy High growth, High P/E stocks, or Low growth, Low P/E stocks. VectorVest favors the purchase of stocks with RV ratings above 1.00.
 
RS (Relative Safety): RS is an indicator of risk. EZM has an RS rating of 1.00, which is fair on a scale of 0.00 to 2.00. RS is computed from an analysis of the consistency and predictability of a company's financial performance, debt to equity ratio, sales volume, business longevity, price volatility and other factors. A stock with an RS rating greater than 1.00 is safer and more predictable than the average stock in the VectorVest database. VectorVest favors the purchase of stocks of companies with consistent, predictable financial performance.
   
RT (Relative Timing): RT is a fast, smart, accurate indicator of a stock's price trend. EZM has a Relative Timing rating of 1.46, which is excellent on a scale of 0.00 to 2.00.  RT is computed from an analysis of the direction, magnitude, and dynamics of a stock's price movements over one day, one week, one quarter and one year time periods. Once a stock's price has established a strong trend, it is expected to continue in that trend for the short-term. If a trend dissipates, RT will gravitate toward 1.00. RT will explode from bottoms, dive from tops, and reflect changes in price momentum. VectorVest favors the purchase of stocks with RT ratings above 1.00. 
 
VST (VST-Vector):  VST is the master indicator for ranking every stock in the VectorVest database. EZM has a VST rating of 1.36, which is very good on a scale of 0.00 to 2.00. VST is computed from the square root of a weighted sum of the squares of RV, RS, and RT. Stocks with the highest VST ratings have the best combinations of Value, Safety and Timing. These are the stocks to own for above average, long-term capital appreciation. VectorVest advocates the purchase of safe, undervalued stocks rising in price. 
 
Recommendation (REC): VectorVest gives a Buy, Sell, Hold recommendation on every stock, every day. EZM has a Buy recommendation. REC reflects the cumulative effect of all the VectorVest parameters working together. These parameters are designed to help investors buy safe, undervalued stocks rising in price. They also help investors avoid or sell risky, overvalued stocks falling in price. VectorVest recommends that investors buy high VST-Vector, Buy-rated stocks in rising markets.

  GRT (Earnings Growth Rate): GRT reflects a company's one to three year forecasted earnings growth rate in percent per year. EZM has a forecasted Earnings Growth Rate of 31.00%, which VectorVest considers to be excellent. GRT is computed from historical, current and forecasted earnings data. It is updated each week for every stock in the VectorVest database. GRT often foretells a stock's future price trend. If a stock's GRT trend is upward, the stock's price will likely rise. If GRT is trending downward, the stock's Price will probably fall. VectorVest favors the purchase of stocks whose GRT is rising and is greater than the sum of current inflation and interest rates, (7.55%).

EPS (Earnings per Share):  EPS stands for leading 12 months Earnings Per Share. EZM has a forecasted EPS of $0.19 per share. VectorVest determines this forecast from a combination of recent earnings performance and traditional fiscal and/or calendar year earnings forecasts.

EY (Earnings Yield): EY reflects earnings per share as a percent of Price. EY is related to P/E via the formula, EY = 100 / (P/E), and may be used in place of P/E as a measure of valuation. EY has the advantages that it is always determinate and can reflect negative earnings. EZM has an EY of 12.82 percent. This is above the current average of 2.85% for all the stocks in the VectorVest database. EY equals 100 x (EPS/Price). 
 
GPE (Growth to P/E Ratio): GPE is another popular measure of stock valuation. It compares earnings growth rate to P/E ratio. EZM has a GPE rating of 3.98.  High growth stocks are believed to be able to justify high P/E ratios. A stock is commonly considered to be undervalued when GPE is greater than 1.00 and overvalued when GPE is below 1.00. Unfortunately, this rule of thumb does not take into account the effect of interest rates on P/E ratios. The operative GPE ratio of 1.00 is valid when and only when interest rates equal 10%. With long-term interest rates currently at 5.35%, the operative GPE ratio is 0.29. Therefore, EZM may be considered to be undervalued. 

Dividend Analysis:
 
DIV (Dividend): VectorVest reports annual, regular, cash dividends as indicated by the most recent payments. Special distributions, one-time payments, stock dividends, etc., are not generally included in DIV. EZM does not pay a dividend. 
 
DY (Dividend Yield): DY reflects dividend per share as a percent of Price. EZM does not pay a dividend, so it does not have a Dividend Yield rating. . DY equals 100 x (DIV/Price). It is useful to compare DY with EY. If DY is not significantly lower than EY, the dividend payment may be in jeopardy. 
 
DS (Dividend Safety): DS is an indicator of the assurance that regular cash dividends will be declared and paid at current or at higher rates for the foreseeable future. EZM does not pay a dividend, so it does not have a Dividend Safety rating . Stocks with DS values above 75 typically have RS values well above 1.00 and EY levels that are much higher than DY.

 
DG (Dividend Growth Rate): Dividend Growth is a subtle yet important indicator of a company's financial performance. It also provides some insight into the board's outlook on the company's ability to increase earnings. EZM does not pay a dividend, so it does not have a Dividend Growth rating . 
 
YSG (YSG-Vector): YSG is an indicator which combines DIV, DY and DG into a single value, and allows direct comparison of all dividend-paying stocks in the database. EZM does not pay a dividend, so it does not have a YSG rating . Stocks with the highest YSG values have the best combinations of Dividend Yield, Safety and Growth. These are the stocks to buy for above average current income and long-term growth


CI (Comfort Index): CI is an indicator which reflects a stock's ability to resist severe and/or lengthy price declines. EZM has a CI rating of 1.78, which is excellent on a scale of 0.00 to 2.00. CI is quite different from RS in that it is based solely upon a stock's long-term price history. VectorVest advocates the purchase of high CI stocks.



Sales / Market Capitalization Information:
 
Sales: EZM has annual sales of $294,000,000
 
Sales Growth: Sales Growth is the Sales Growth Rate in percent over the last 12 months. EZM has a Sales Growth of 10.00% per year. This is good. Sales Growth is updated each week for every stock. It is often useful to compare Sales Growth to Earnings Growth to gain an insight into a company's operations. 
 
Sales Per Share (SPS): EZM has annual sales of $0.55 per share. SPS can be used as a measure of valuation when comparing stocks within an Industry Group. 
 
Price to Sales Ratio (P/S): EZM has a P/S of 2.75. This ratio is also used as a measure of valuation. Here, too, it is useful when comparing stocks within an Industry Group.
 
Shares: EZM has 533,000,000 shares of stock outstanding.
 
Market Capitalization: EZM has a Market Capitalization of $810,000,000. Market Capitalization is calculated by multiplying price times shares outstanding.


Summary:
 
EZM is undervalued compared to its Price of $1.52 per share, has about average safety, and is currently rated a Buy.
 
The basic strategy of VectorVest is to buy Low risk, High reward stocks. We suggest that Prudent investors buy enough High Relative Value, High Relative Safety stocks to keep the overall RV and RS ratings of their portfolios above 1.00. As you do this, you'll find that your risk will go down and your investment performance will improve.

Thanks for the interesting analysis you posted  :)

Copper prices had a steep correction on Friday, and copper related stocks as EZM followed the commodity's steps.

From the latest financial report from the company:

QuoteNet earnings in the quarter were $25.3 million or $0.05 (Cdn$0.06) per share

$0.05 in net income for the third quarter. If we annualize this we get $0.20 EPS per year without any growth. This means EZM's earnings multiple is 6.65. On Terlisa's article we see that firm expecting 31% annual average growth in EPS going forward, so there is no doubt EZM is very undervalued.

As we go deeper into these mining stocks, we see there are very different groups underneath the «mining stocks». Clearly, gold related companies seem to be very expensive, and copper related stocks look incredibly cheap. That doesn't make any sense, because copper is outperforming gold (for the past 6 months, copper rose 38% and gold rose 28%) :o

I think EZM and TGB (on a comparative basis I prefer TGB, but they are both great - I would welcome if any of you could find some more copper plays, thanks) are sure things as time goes by, neverming short term timing. I'll continue to hold EZM on the Stocks on Fire Portfolio.

CUP, Peru Copper is a copper related stock. I dont know much about the stock.

Another is PCU. Souther Copper Co. This one is a fast growing co. with PEG of 0.47.

David can make best analysis. Looking forward to that.

I'm down over 17% for this trade... what happen? EZM drops like a rock... whoooooo man!!! :'(

EZM broke the 61.8 Fibonacci retracement, looks like going for double bottom :'(
David, what is your take on this one?

This is being pulled down by copper prices.  A lot of analysts are saying they are going into a correction because they rose too high too fast.  I am out about that much on this stock too :-\. TGB's conference call is Thursday I think, so maybe that could help this stock as well(if it is positive)

EuroZinc Announces Closing of Secondary Distribution
Tuesday February 14, 1:58 pm ET

VANCOUVER, British Columbia--(BUSINESS WIRE)--Feb. 14, 2006--EuroZinc Mining Corporation ("EuroZinc") (TSX:EZM - News; AMEX:EZM - News) announced today that further to its news release of January 25, 2006, Resource Capital Fund L.P. and Resource Capital Fund II L.P. have sold an aggregate of 71,430,000 common shares of EuroZinc at a price of $1.40 per share for gross proceeds before expenses and underwriting fees of $100,002,000. The shares were sold to an underwriting syndicate and EuroZinc did not receive any proceeds from the sale of these shares. As a result of the secondary distribution by Resource Capital Funds I and II LP, Resource Capital Funds II and III LP together now beneficially own a total of 99,640,533 shares representing 18.32% of the issued and outstanding shares of EuroZinc.

EuroZinc is a Canadian based company engaged in the acquisition, exploration, development and mining of base metal deposits internationally.

Quote from: Terlisa on February 14, 2006, 12:03:38 AM
I'm down over 17% for this trade... what happen? EZM drops like a rock... whoooooo man!!! :'(

EZM broke the 61.8 Fibonacci retracement, looks like going for double bottom :'(
David, what is your take on this one?

Looking good... EZM bounce back @ 61.8 Fibonacci Retracement ;)
Looks like will close @ HOD ;)

EuroZinc Announces Closing of Secondary Distribution
Tuesday February 14, 1:58 pm ET
http://biz.yahoo.com/bw/060214/20060214006184.html?.v=1

VANCOUVER, British Columbia--(BUSINESS WIRE)--Feb. 14, 2006--EuroZinc Mining Corporation ("EuroZinc") (TSX:EZM - News; AMEX:EZM - News) announced today that further to its news release of January 25, 2006, Resource Capital Fund L.P. and Resource Capital Fund II L.P. have sold an aggregate of 71,430,000 common shares of EuroZinc at a price of $1.40 per share for gross proceeds before expenses and underwriting fees of $100,002,000. The shares were sold to an underwriting syndicate and EuroZinc did not receive any proceeds from the sale of these shares. As a result of the secondary distribution by Resource Capital Funds I and II LP, Resource Capital Funds II and III LP together now beneficially own a total of 99,640,533 shares representing 18.32% of the issued and outstanding shares of EuroZinc.

EuroZinc is a Canadian based company engaged in the acquisition, exploration, development and mining of base metal deposits internationally.

The TSX has not reviewed and does not accept responsibility for th e adequacy or the accuracy of this release.

EuroZinc Mining Corporation (TSX:EZM - News; AMEX:EZM - News)

Quote from: stocky on February 13, 2006, 10:50:16 PM
CUP, Peru Copper is a copper related stock. I dont know much about the stock.

Another is PCU. Souther Copper Co. This one is a fast growing co. with PEG of 0.47.

David can make best analysis. Looking forward to that.

Both charts of those stocks look great stocky, I'll take a deeper look when I have the chance, thanks  :)

I hope you guys are feeling better on EZM. A few remarks:

1) That secondary offer was known since the 26th of January. At that date EZM closed at $1.31, so almost no change since then. It's not relevant news at this point.
2) Terlisa's chart and Fibonacci talk is wrong, he doesn't have the compleat chart. On my chart the stock is above the 50% retracement (strange charts on EZM)
3) The stock broke TL2, but now we have the 50 day moving average acting as support.

Overall I'm losing 8.45% on this position, but I'm still confident. I understand that EZM's stock price doubled in the past 4 months and a pullback is normal behaviour. Although the stock was overbought when I bought it we never know if there was to be a correction then or 100% above, where the stock would be even more overbought.

The copper price is coming back after a correction and probably copper related stocks will also come back and make new highs. This trend on copper related stocks is just starting and the potential is huge, so volatility and risk is also high.

I'll continue holding EZM.

Yesterday, copper futures opened with a gap down, right at the 50 day moving average, and then claw back up all day, closing an opened gap and leaving a white marubozu on the chart.

The short term decline in copper seems to be over or near the end, and I feel the long term trend will continue. It may continue for more 10 years, nobody knows, but by judging from the level of public participation, the bull market in commodities is still in its early stages.

EZM stock is reacting to changes in the copper market, but if we think of it just as a normal stock, it has an earnings multiple of about 5.5 and earnings growth forecasts are for 31% a year.

Technically the stock is near its 50 day moving average (as the copper price) and it will probably rebound and make new highs, as its long term ascending trend continues.

EZM holders got a gift today with the gap up. IMO David should be booking the small gain. 9 times out of 10 this kind of gap will fill. Why not sell today and buy back later for 10-15% cheaper? 

Quote from: Lucas Scott on February 21, 2006, 01:29:47 PM
EZM holders got a gift today with the gap up. IMO David should be booking the small gain. 9 times out of 10 this kind of gap will fill. Why not sell today and buy back later for 10-15% cheaper? 

Thanks for your opinion Lucas Scott, you're probably right (although to close the gap EZM needs to go down just 6.8%, not 10-15%).

But, it is also possible that, due to an extreme undervaluation, EZM blows out the $1.58 top and just continues to trend higher. You see, people who bought today also knew we had a big gap up at the open ... that might be a signal of strength, investors were eager to buy.

I always said that EZM had a correction, not a change in trend. And if a sell off couldn't change the trend, that trend will continue.

If I sell now to buy 7% lower, but the stock just continues to move higher as I always expected, where would I be in the market? Totally lost. I want to stay on track and continue holding EZM.

just FYI:
EZM: Short Interest UP 2988.9% to 555.7K in Feb 2006
Wednesday, February 22, 2006 16:15 ET

According to new short interest data from AMEX, short interest for Eurozinc Mining Corporation (AMEX: EZM) INCREASED 2988.9% to 555,700 shares for the month ended mid-February, 2006.

SYMBOL      JANUARY        FEBRUARY          CHANGE       %CHANGE  DAYS/COVER
--------   -------------   -------------   -------------  ------------  ----------
EZM               17,990         555,700        +537,710     +2988.94%           1

Based on EZM's 20-day average daily share volume of 1,036,920, it would require approximately 1 day(s) of buying to cover this short interest.

Quote from: la-onda on February 23, 2006, 05:56:22 AM
just FYI:
EZM: Short Interest UP 2988.9% to 555.7K in Feb 2006
Wednesday, February 22, 2006 16:15 ET

According to new short interest data from AMEX, short interest for Eurozinc Mining Corporation (AMEX: EZM) INCREASED 2988.9% to 555,700 shares for the month ended mid-February, 2006.

SYMBOL      JANUARY        FEBRUARY          CHANGE       %CHANGE  DAYS/COVER
--------   -------------   -------------   -------------  ------------  ----------
EZM               17,990         555,700        +537,710     +2988.94%           1

Based on EZM's 20-day average daily share volume of 1,036,920, it would require approximately 1 day(s) of buying to cover this short interest.

Thanks for the information la-onda  :)

I'm not so optimistic regarding rising short interest as I used to be. In the futures market, the more shorts (in terms of number of traders), the more bullish is the market. But in stocks I believe it doesn't work that way. Has anybody ever read a study on how the short interest affects stock prices?

I didn't, so I can't use the information. How do you use it la-onda? Thanks  :)

EZM yesterday released good news, but I don't know enough about mining to interpret it in detail. Anyway, it surely is good news that the mining camp has been extended:

EuroZinc Mining Corporation: Surface Drilling Extends Western Limit of the Neves Orebody (http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BB2B28E47%2D9181%2D47ED%2DBC61%2D81B0899B7B4B%7D&siteid=mktw&sid=146606&symb=)

Technically the stock came down 3% after the previous day's 8% rise. Still didn't manage to close the gap, but probably Lucas Scott is right on his «close the gap» call. Anyway, I don't want to lose my position, so I'll continue holding EZM either way.

Quote from: Lucas Scott on February 21, 2006, 01:29:47 PM
EZM holders got a gift today with the gap up. IMO David should be booking the small gain. 9 times out of 10 this kind of gap will fill. Why not sell today and buy back later for 10-15% cheaper? 

What can I say? Lucas Scott is the man ! He not only won the 1st Edition of our Stock Picking Contest, he also makes precise short term predictions  :)

But I couldn't sell to buy a bit lower. No such a short term trader here or I would have to make dozens of trades per month.

Anyway, EZM came down to exactly close the gap and rebounded to close positive and at the high of the day. The way is clear for another leg up now.

I'll continue holding EZM.

EZM will report earnings on Thursday before the open: EuroZinc to Hold Fourth Quarter Results Conference Call (http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BF6077A04%2D1641%2D48DD%2DA547%2D4DCBC376583D%7D&siteid=mktw&sid=146606&symb=)

This will be interesting, as copper prices were up a lot over the 4th quarter. Perhaphs the earnings release will be the catalyst to push EZM to new highs above $1.58.

I'll continue holding EZM through earnings.

We had news: EuroZinc Mining Corporation: Agreement Reached on Aljustrel Mine Obligations (http://biz.yahoo.com/bw/060227/20060227005859.html?.v=1)

«PA is the operating company that owns the Aljustrel zinc/lead/silver mine located in southern Portugal, and is now a wholly owned subsidiary of EuroZinc as a result of the Share Purchase Agreement.»

Subsequent to this, EZM will not only be a copper producer, it will also be a zinc, lead and silver producer. I'm sure the Portuguese Government won't oppose to this, since it will create jobs in a very depressed region of our country.

I'll continue holding EZM.

EZM did a good job today! maybe tomorrow again ;) :D ;D

EZM looks good too on the weekly chart ;)
Go, Go EZM!! Go break that $1.58 ;)

He he, yes Terlisa, nice job on EZM yesterday. The stock shows relative strength. Copper prices reacted favourably to support.

Everything is set for EZM to break $1.58 on the upside, it is just a matter of time.

I'll continue holding EZM on the Stocks on Fire Portfolio (the reason I like TGB a bit more to consider as a long term investment is because TGB has a $191M market cap and EZM has $784M, so EZM is already 4 times larger than TGB).

QuoteEverything is set for EZM to break $1.58 on the upside, it is just a matter of time.

The stock closed at $1.56 yesterday. If we get a close above $1.58 on volume above average, we get a technical target of $1.58 - $1.19 = $0.39+$1.58 = $1.97.

Copper prices also rallied yesterday and will probably make new highs above $230 soon.

Perhaps EZM is also being «upgraded», because in the future it won't be just a copper mine, it will also be (if everything goes as planned) a zinc, lead and silver producer, and this group of stocks has a much richer valuation  ;)

I'll continue holding EZM.

 ;D
EuroZinc Announces Record Fiscal 2005 and Fourth Quarter Results
Thursday March 2, 9:00 am ET


VANCOUVER, British Columbia--(BUSINESS WIRE)--March 2, 2006--EuroZinc Mining Corporation (TSX:EZM - News; AMEX:EZM - News) -
All dollar amounts are expressed in US dollars unless otherwise noted

EuroZinc Mining Corporation ("EuroZinc" or "the Company") today announced financial results for the fourth quarter and year ending December 31, 2005. Colin K. Benner, Vice Chairman and CEO of EuroZinc commented that, "The investment in Neves-Corvo has been significant for EuroZinc. In the 18 months the Company has owned the Neves-Corvo mine we have repaid almost the entire amount of the acquisition debt, all monies borrowed to acquire the price participation rights and are now accumulating cash. The mine operated in 2005 at production levels beyond what was believed achievable in our due diligence. The operating costs in the mine have remained constant despite inflationary pressures, and the robust copper price has made an extraordinary contribution to our balance sheet, as it has to others in the copper business. The timeliness of the acquisition of Neves-Corvo and the quality of the asset has exceeded the expectations of many. We believe the continued strong copper market, and the addition of zinc production in the near term in a strong zinc market bodes well for the future of the Company and for its shareholders."

Highlights for 2005 and Fourth Quarter

- Achieved record revenue of $314.9 million on sales of 203.7 million pounds of copper for the year and $97.5 million on sales of 48.1 million pounds for the fourth quarter;

- Achieved record net earnings of $88.3 million or US$0.17 (Cdn$0.20) per share for the year and $27.8 million or US$0.05 (Cdn$0.06) for the fourth quarter;

- Generated cash flow from operations, before working capital changes, of $131.4 million or US$0.25 (Cdn$0.30) per share for the year and US$0.09 (Cdn$0.10) for the fourth quarter;

- Initiated an aggressive $10 million exploration program in Portugal;

- Repaid $86.3 million of debt in 2005;

- Strengthened the balance sheet by reducing the net debt to equity ratio to 7% at the 2005 year end from 73% at the beginning of the year;

- Purchased the balance of the vendors' price participation rights in 2005 and repaid the related loan in eight months;

- Listed on the American Stock Exchange.

"We are both pleased and proud of our first full year of work as a new team in Portugal and in EuroZinc," said Joao Carrelo, Managing Director of Somincor, EuroZinc's wholly owned subsidiary that owns the Neves-Corvo mine. Mr. Carrelo added, "This was our first full year as a mine operating entity in Portugal, managing Europe's second largest copper mine. The management and employees of Neves-Corvo achieved a 14 percent improvement, year over year, in tonnes mined and an 8 percent improvement in tonnes milled, and did so with no additional manpower, equipment or change in the working schedules."

EZM made a breakout  ;) :D

Wow, outstanding results on EZM  :o

$0.17 a share for the 4th quarter mean $0.68 annualized, so the earnings multiple is 2.34 !!!!

These results were much better than I was anticipating ... of course, the stock opened with a gap up and needed to close that gap, but there's no doubt EZM will be an outstanding performer going forward.

Is there calculation error for 2006 performance?

It showed < 1% yesterday but now is > 7% with today's gain/loss only 0.34%.

Based on my records, it is less than 1% so far.

Quote from: David Randolph on March 03, 2006, 09:10:14 AM
Wow, outstanding results on EZM  :o

$0.17 a share for the 4th quarter mean $0.68 annualized, so the earnings multiple is 2.34 !!!!

I think there is an error:

They earned $0.05 for the quarter and $0.17 for the year.

I am curious why the stock did not jump after the good news?

Quote from: shawFund on March 03, 2006, 10:28:47 AM
Is there calculation error for 2006 performance?

It showed < 1% yesterday but now is > 7% with today's gain/loss only 0.34%.

Based on my records, it is less than 1% so far.

2006 performance is +1.94% on Stocks on Fire, -0.07% on Long Term on Fire and +13.69% on the Pennies on Fire Portfolio right at this moment.

Quote from: shawFund on March 03, 2006, 10:36:52 AM

Quote from: David Randolph on March 03, 2006, 09:10:14 AM
Wow, outstanding results on EZM :o

$0.17 a share for the 4th quarter mean $0.68 annualized, so the earnings multiple is 2.34 !!!!

I think there is an error:

They earned $0.05 for the quarter and $0.17 for the year.

I am curious why the stock did not jump after the good news?

You're right, I was in a hurry so didn't read the numbers correctly. They earned $0.05 on the 4th quarter, so $0.20 annualized. Then, the earnings multiple is 8.

Not as attractive as I initially saw, but still very attractive (you really don't want to buy stocks too cheap).

Thanks for the correction shawFund  :)

Thanks.

The recent stock selection fits your style. Follow the trend.

Buy high and go higher.

I didn't knew EZM had the 2nd largest copper mine in Europe  :o

«"We are both pleased and proud of our first full year of work as a new team in Portugal and in EuroZinc," said Joao Carrelo, Managing Director of Somincor, EuroZinc's wholly owned subsidiary that owns the Neves-Corvo mine. Mr. Carrelo added, "This was our first full year as a mine operating entity in Portugal, managing Europe's second largest copper mine. The management and employees of Neves-Corvo achieved a 14 percent improvement, year over year, in tonnes mined and an 8 percent improvement in tonnes milled, and did so with no additional manpower, equipment or change in the working schedules."»

Other highlights on the 4th quarter results:

«Highlights for 2005 and Fourth Quarter

- Achieved record revenue of $314.9 million on sales of 203.7 million pounds of copper for the year and $97.5 million on sales of 48.1 million pounds for the fourth quarter;

- Achieved record net earnings of $88.3 million or US$0.17 (Cdn$0.20) per share for the year and $27.8 million or US$0.05 (Cdn$0.06) for the fourth quarter;

- Generated cash flow from operations, before working capital changes, of $131.4 million or US$0.25 (Cdn$0.30) per share for the year and US$0.09 (Cdn$0.10) for the fourth quarter;

- Initiated an aggressive $10 million exploration program in Portugal;

- Repaid $86.3 million of debt in 2005;

- Strengthened the balance sheet by reducing the net debt to equity ratio to 7% at the 2005 year end from 73% at the beginning of the year;

- Purchased the balance of the vendors' price participation rights in 2005 and repaid the related loan in eight months;

- Listed on the American Stock Exchange.»

Basically, the company almost already paid all its initial investment, in about 1 year of operations. I told you the Portuguese sell their assets cheap  ::)

Going forward probably net income will rise substantially, since most debt was already paid. Also, on the revenue side, the company will soon add zinc exploration.

I'll continue holding EZM ...

There were some good news on EZM yesterday:

EuroZinc Announces New Mineral Resource and Reserve for Neves-Corvo (http://www.marketwatch.com/tools/quotes/newsarticle.asp?siteid=mktw&sid=146606&guid=%7B5D051A2B%2DC3F4%2D4CE8%2DAD9B%2D406980DEE15D%7D&symb=)

It looks like the stock found a bottom, since it made an hammer, which is a bullish candlestick pattern. Volume also increased.

I'm starting to know why Michael says the expectations for the copper market are for it to go down, since even EZM uses a much lower price than the current price for its internal and external estimates:

«Copper reserves are calculated using a 2% cut-off based on a long term copper price of US$1.04/lb and dilution of 10%.»

They're conservative, I like that. I still believe these copper/zinc mining companies have the potential to surprise on the upside, given their low valuation.

I'll continue holding EZM.

I believe that EZM may have hedged alot of their copper at a lower price.  I don't know how that calculates into their  profit outlook of $1.04 lb.

EZM is trading the range $1.20/$1.60 for the last 2 months.

After breaking up the upside, the stock had another sell-off, dropping again to the $1.36 level, making this value to be the short term support.

As a precaution measure, we'll setup a stop level to this trade @ $1.35, since we believe this price level could turn our short term perspective on EZM if breached down.

Best regards,

EZM had a nice run last Friday, due to this news (published after the bell on Thursday):
EuroZinc Added to S&P/TSX Composite Index (http://biz.yahoo.com/bw/060316/20060316006020.html?.v=1)

Today EZM opened with a gap up to new highs, and start tumbling the rest of the session over high volume. We didn't particularly enjoyed this session, but the technical pattern is still good.

EZM is been performing consecutive higher short term highs, and higher short term lows, so our trading plan will be updated upon this demand; we'll give EZM room for a correction, but only assuming that this will going to be a higher low. The last relative low was $1.36, taking in consideration the new ascending support; we'll be moving our stop level to $1.45, and Hold EZM.

Another red candle after breaking new highs... EZM is been performing this behaviour during the last months, but always with higher highs and higher lows, giving an interesting bullish mood to this stock.

This technical pattern is working, and we'll be just adjusting our trading plan to it, upgrading our stop a bit higher, since it's connected to an ascending support line:
- Hold EZM with a stop @ $1.52

Hi Ramsburg.

Do you think its time to increase the stop loss on this one to protect the gains made ? :-\

Quote from: Gillham on April 11, 2006, 07:07:20 PM
Hi Ramsburg.

Do you think its time to increase the stop loss on this one to protect the gains made ? :-\

Hi Gillham, yes we're updating our stop level today.

EZM is been performing very well, trading on a new stage now. We decided to change our stop level from the previous support to the new one. It's just a security measure to protect our profits, the new stop may seem a bit tight, but we must do that even if we think EZM is willing to continue this bull trend.

So the new plan is:
- Hold EZM with a stop @ $1.90

EZM: Canaccord Cuts to Hold from Buy
Tuesday , April 18, 2006 08:32 ET
Issuer: Eurozinc Mining Corporation (AMEX: EZM)
Analyst Firm:  Canaccord Capital
Ratings Action: DOWNGRADE
Current Rating: Hold (from Buy)

but also


[/color]
Tuesday , April 18, 2006 09:57 ET

This is the 1st 52 WEEK HIGH alert for EZM in the past 7 calendar days.

The share price for Eurozinc Mining Corporation (AMEX: EZM) reached a new 52-week high today, trading at $2.360, up $0.090 (3.96%) from its previous close of $2.270.

The Company's previous 52-week high of $2.320 was set yesterday on April 17, 2006.

Four months ago, the Company's shares closed at $1.100. The price has climbed more than 114 percent since then.

At the time of this alert, the stock had traded 127,100 shares via 8 trades, 94.09% below it's 20day average of 2,150,025 shares.

This new 52-week high currently puts the stock:

25.37% above its 20day Moving Average of $1.883
45.18% above its 50day Moving Average of $1.626
58.57% above its 100day Moving Average of $1.488

are you indicating it is time to sell or keep holding ?

personally I would follow the 3SoF trading plan  ;)

Quote from: la-onda on April 19, 2006, 07:30:29 AM
personally I would follow the 3SoF trading plan  ;)

;) Thanks for your inputs la-onda (applaud)

I think we'll update the trading plan tonight on EZM (probably just a new stop).

best regards,

EZM is currently our best performer inside the 3SOF Portfolio.

Our strategy here is been riding this powerful trend (The trend is our Friend). EZM is beating consecutive higher highs, and higher lows, so we have no reason to sell EZM yet. In the other hand we have no upside projection on this trade, so we are not trying to sell on a spike, we are just riding a trend, until it ends.

We'll be upgrading our stop level a little higher on this trade, and let this trend on the run, so the plan is:
- Hold EZM with a stop @ $2.05

Sold @2.05, more than 44% profit!  ;D

Another great trade of 3SOF team!!!  >:D

This has been a great pick, but I will stick it out a bit longer before selling.  Today is clearly a "lets sell gold day" because when I superimpose all my gold stock charts they almost overlap.  Compare the charts for EZM and CGR today (both gold stocks), its almost a perfect overlap.

So this feels artificial and I would guess there will be a day or two more of downside then the climb will resume.  I dont think the commodities run is over starting today, but I will probalby sell EZM when it bounces a bit.

Quote from: tokyopua on April 20, 2006, 03:48:06 PM
This has been a great pick, but I will stick it out a bit longer before selling.  Today is clearly a "lets sell gold day" because when I superimpose all my gold stock charts they almost overlap.  Compare the charts for EZM and CGR today (both gold stocks), its almost a perfect overlap.

So this feels artificial and I would guess there will be a day or two more of downside then the climb will resume.  I dont think the commodities run is over starting today, but I will probalby sell EZM when it bounces a bit.

We sold following the plan, but you can find a nice ascending support near $1.80

best regards !

Quote from: Ramsburg on April 20, 2006, 09:48:58 PM

Quote from: tokyopua on April 20, 2006, 03:48:06 PM
This has been a great pick, but I will stick it out a bit longer before selling.  Today is clearly a "lets sell gold day" because when I superimpose all my gold stock charts they almost overlap.  Compare the charts for EZM and CGR today (both gold stocks), its almost a perfect overlap.

So this feels artificial and I would guess there will be a day or two more of downside then the climb will resume.  I dont think the commodities run is over starting today, but I will probalby sell EZM when it bounces a bit.

We sold following the plan, but you can find a nice ascending support near $1.80

best regards !

Well, I was fortunately wrong, it didnt take a few days for the bounce, so I just got out at 2.19  :)  Still holding CGR though for now.

It's time to get back in EZM...  >:D

EZM near term target of $3.00

Earnings this week! What do you guys think???

http://finance.yahoo.com/q/is?s=EZM&annual

Very bullish indeed, I added EZM to my portfolio as a value play on the recent breakout at 2.57
Unless the quarter report is a dissapointment I plan on keeping it long term.

:)

Quote from: bocasva on May 09, 2006, 09:18:08 AM
Very bullish indeed, I added EZM to my portfolio as a value play on the recent breakout at 2.57
Unless the quarter report is a dissapointment I plan on keeping it long term.

congrats & applaud

nice news also  ;)