Iofina Share Discussion Threads

[playful] 01/10/2014 07:25

That made me smile..

[verymaryhinge] 01/10/2014 06:59

not what I expected to read..

hxxp://news.sky.com/story/1345219/conservative-party-donor-switches-to-ukip

[ansana] 30/9/2014 23:18

Hmmm.... Rockstar I think that post will give Heartwell cause to have a Heart attack. For the rest of us we are being rewarded for our patience. Lance Tom and the wider team are turning the company around. Admin costs slashed and money in the bank so all we need now is the growth strategy and off we go to the next level. Ok I am back to lurking.

[bobsworth] 30/9/2014 22:13

Rock Star
Your post is in tune with my thoughts and is music to my ears!

[che7win] 30/9/2014 22:03

Rock Star,
Excellent post, a firm footing to move ahead from here.

[monts12] 30/9/2014 21:11

I wonder if Square1 is still around?

[rock star] 30/9/2014 20:47

IOF have almost completed the consolidation Phase:

Chems Division sales exceeding expectations and margins.
Cost of producing Iodine internally 30% than less than current world price-even at reduced production rates.
Cash on Balance Sheet to start next phase of expansion.
Admin costs dropped significantly so profitable in H2.


IOF are a transformed business from a year ago. In cash generation phase opposed to CAPEX spend mode.

[bobbyshilling] 30/9/2014 16:31

No nasty surprises in there and looks like they have done pretty much all they can for the water permit. Hopefully a few mobile units next year then. A case of hanging on now as things develop.

[superg1] 30/9/2014 14:15

On the costs of a water depot there is a large difference between the capex needed for a cold water depot v hot water facilities too. Obviously revenues on the hot water side are considerably different too.

The first point is getting the permit and we can wonder about the prospects or not when it's concluded.

[superg1] 30/9/2014 13:46

Meb

As Che states, I'd be thinking they have that in mind too, as it's been on the table before, and makes far more sense re the costs for a partner.

That's further endorsed imo by the very strong comments about the intent to be a major player in the iodine industry.

The prior team didn't follow the script otherwise we'd have plants on higher ppm sites. They will fix that, the higher the ppm on good bpd rates, the lower the costs will go.

[che7win] 30/9/2014 13:40

Meb123,
a joint venture would be the intended route.

[superg1] 30/9/2014 13:39

yas

It works the other way too, I've seen some stonking news missed by the market on other shares and it's taken over an hour sometimes for them to click.

I didn't want to post my thoughts with bears around, but I thought they were taking it down to go for 40p early on to pick up some cheap shares. However the rns surprised me too, and it wasn't surprising under the circs that 39/40p was gone in a flash.
The feedback re chats so far seems positive.

[meb123] 30/9/2014 13:34

Good to see more detail on water- only thing is they say they need more financing if it is approved . Does anyone have any idea how much we are talking about ? A rights issue perhaps?

[woodpeckers] 30/9/2014 13:17

Hi parthus, you know me well... ;-)

[che7win] 30/9/2014 13:03

Its always weighted in MMs favour. They pulled the quote on me when they were overwhelmed with buys. If you didn't follow the company intimately you wouldn't realise how these results are much better than expected.

[yasharsad] 30/9/2014 12:39

I don't understand what the reason is for the initial price drop on today (and the market opened below yesterdays close), despite the fact that the rns was a very strong rns? Is there any explanation for this ir just MMS game?

[parthus] 30/9/2014 12:11

Woody !!

You woke up early today, being Tuesday, to watch Mr Woody get into his tennis shorts.. and lucked out !

Such is life.. money goes to money....

[che7win] 30/9/2014 11:35

Might even become cash flow positive for the year as a whole...I sense a corner turned with these results.

[che7win] 30/9/2014 11:23

VMH,
that is better than I thought possible in the post before yours, and that is in H2 with ongoing cuts to costs.
I know they got rid of a few staff even last month, so 2015 admin will be better again for admin expenses :-)

We would be cash flow positive first half with that reduction in admin.

I'm looking at the costs alone, that would get us well into cash generation H2.

The plants optimised and running well then pushes the profits up.

Cheers.

[stevo2011] 30/9/2014 11:19

What are you talking about Willis

[verymaryhinge] 30/9/2014 11:14

It's clear to me the institutional presentations this morning are going down like a cup of cold sick. Oh. No wait...I believe the target is for admin to be almost 1.5 mill less in H2.

[che7win] 30/9/2014 10:59

The accounts read well, but show under previous management costs were escalating unchecked.

The operating activities only consumed $576,000, easily able to move cash flow positive from here.

The more I look at those admin expenses, the more I think they have been able to slash costs for H2.
We had $2,489,311 for H1 2013, $6,155,531 for full year, then $4,618,035.
So H2 2013 they were at $3,666,220, I think that is achievable again with 6 plants running.

That would take us to cash flow positive on operation alone, I expect we are moving into an exciting cash flow positive phase from here on.

Arguably, we didn't need Mr Big's loan, the accounts prove that, it proves what management said that the proceeds were for expansion.

Iodine prices rising from here and it will be the icing on the cake.

[captain_kurt] 30/9/2014 10:55

The clock stops for any queries and delayed responses imo. So it could be many months yet, as mentioned in the results