Iofina Share Discussion Threads

[jasisdad] 17/11/2014 07:56

What's the Japanese permit about? Does it make us more attractive to one of the big Jap companies or will we be doing a JV with a Jap company?Confirmation on predicted revenues should stabilise the market though - possibly leaked again on Friday looking at the share price!

[madchick] 17/11/2014 07:54

ugh - my post didn't go through.

che - I was trying to say that you made a good point about them still making improvements even now. I wonder if this is why they haven't reported precise recent production figures as they may be misleading if they need to take stuff offline and then online and maybe the observed stabilisation that they claimed to have when withdrawing quarterly reports was really a bare minimum (which we have now clearly exceeded in this last month and for all forthcoming months, as far as IOF can tell).

Agree with orslega - next news probably water, followed by 2015 plans in 2015.

[orslega] 17/11/2014 07:44

Ticking along nicely (share price excluded for time being,lol). So next update probably beginning December Water - boxes fully ticked and then business plan but maybe we wont see that until January looking at TB's comments in last para.

Like the Japanese patent - strengthening the need for a Japanese off take agreement : )

[1madmarky] 17/11/2014 07:43

Nice! good solid business as usual RNS. I note that fracking continues with no let up, which of course is good news long term, but no doubt there will continue to be some disruption to our operations. But with more brine available in our leased area the value of our leased area must increase. Anyway I'm certainly happy with that, fingers crossed for no objections...
GLA

[expatken] 17/11/2014 07:40

My previous post here questioned the impact on IOF as a result of reduced fracking. If i read the responses accurately the consensus was that fracking had no effect. Todays RNS says "the Company has not seen a slow-down in fracking activity as many of its partners have hedged out a significant portion of their oil production, mitigating exposure to recent oil price volatility". Which to me does indicate IOF will be affected at some point in the future and the questtion has to be asked as to what effect it will have on IOF if and when fracking stops and if or when these companies go out of business.

The phrase "expects to produce between 325 and 350MT of crystallized iodine in 2014" I will take as read as being on the lower end of that production figure which will be deemed a negative on terms of share price sentiment when the figure is finally known.

"Iofina Chemical derivative sales are up over 25%" A disappointing increase.

"The Company's management team is in the process of finalising its next business growth plan and intends to update the market on the Company's plans for 2015 and beyond once this process is fully complete." No real indication of when this plan will be announced and, from memory, that's effectively a slip from prior suggestions. The lack of potential areas in which areas are ender evaluation is worrying especially as the only future guidance given in this RNS is related to existing hardware i.e. " we still believe we can make further operational improvements to our plants."

Overall this RNS is groundwork in preparing the market for something along the lines of greater productivity from existing hardware in 2015 with, I suspect, a very slow implementation of the mobile rigs (3rd Qtr 2015?) as there is little purpose in rushing it out with depressed iodine prices. Plus there is a real risk of lower iodine production volumes mid 2015.

However the water remains a potentially large positive effect on the shareprice and hopefully greater iodine prices for the latter half of 2015 will make Q3/15 an interesting period to be holding IOF

EPK/Carcosa

[superg1] 17/11/2014 07:33

Cyber

I have been tracking other permits, if valid objections are lodged they do appear during the public notice period.

If you think about it, once they consider a valid objection has appeared, then it moves to a hearing once more.

That's why it's all a bit daft as it's already been through a hearing, with all points proved. Anyone else lodging a valid objection would have to be able to overturn the the points proved. If the bureau couldn't do it, then what chance has Joe public got.

[che7win] 17/11/2014 07:33

A very pleasing RNS, no issues with the six plants and meeting year end targets.

Also pleased that there are still more efficiencies to be gained from our existing plants which will lower costs.

We must be the only operator out there able to lower costs significantly from here whilst others operate at breakeven short term with rising costs.

Excellent RNS setting the stage for 2015.

[superg1] 17/11/2014 07:29

The whole point they stopped mentioning the monthly rate was due to the volatility it created, mainly down to those trading, but as CK points out if it's on track they must have done well. It has to be beyond 36mt for the month to get above the 325 rate.

It seems like the extras added to the patent news was to keep investors updated and perhaps to combat the lies being pushed out.

Nice to have it in news that Heart was lying, as I'm sure some fall for the con tricks that they push out.

Yes CK up 25% and they say that includes October which is supposed to be the slow down period.

[cyberbub] 17/11/2014 07:23

Nice 'steady as she goes' RNS. Confirms that there are no problems and the company is doing OK. Good news on the Japanese patent as well, increases the company's value.I don't read it that we only find out whether there are any objections to the water permit after 1st Dec. We only find out *formally* after 1st Dec if there are any *valid* objections. Meanwhile we have the DNRC web page to tell us whether any have been received in the first place. If the box stays blank then there are no objections, is how I understand it. But I may be wrong!GLA NAI

[captain_kurt] 17/11/2014 07:18

Heartwell wrong again. Iofina must have done 42MT+ iodine production in October.
With IOC sales up 25% in the same month :@)

[simmy1699] 17/11/2014 07:15

Nothing unexpected in the RNS. Wish they would actually confirm the exact tonnage for the previous months though. Don't think it would have cost extra to refer to the mt. So objections only are apparent to all once the objection period expires. GLA

[dafad] 17/11/2014 07:06

RNS Number : 1439X

Iofina PLC

17 November 2014

17 November 2014

Iofina plc

("Iofina" or the "Company")

(LSE AIM: IOF)

Issue of Patent and Market Update

Iofina, specialists in the exploration and production of iodine and iodine specialty chemical derivatives, is pleased to provide an update to the market.

Since the Company's update in October, production of iodine at Iofina Resources has been on track and Iofina is pleased to reiterate that it expects to produce between 325 and 350MT of crystallized iodine in 2014 at its six IOsorb(R) plants. Additionally, the Company has not seen a slow-down in fracking activity as many of its partners have hedged out a significant portion of their oil production, mitigating exposure to recent oil price volatility. The Company will closely monitor the oil price and its impact on fracking activity in Iofina's areas of operation, but at this time Iofina does not anticipate any impact on its operations.

Iofina Chemical continues to perform well utilizing Iofina produced iodine. Year-to-date (YTD) through October, Iofina Chemical derivative sales are up over 25%, even with downward pressure on iodine prices throughout 2014.

The Company's Montana water permit (No. 40S 30066181) is under a public notice period through December 1(st) 2014. Soon thereafter the Company expects to be notified by the state of any objections to the preliminary permit.

The Company is also pleased to announce that the Japanese Patent Office (JPO) has issued a Notice of Allowance for Application No. 2011-528048. The Company expects the official Patent Certificate to be issued by the JPO in the next few months. This patent is a similar filing to the Company's US patent, which was issued last year, describing the extraction of iodine from a third party oil brine stream located at the brine water injection site.

The Company's management team is in the process of finalising its next business growth plan and intends to update the market on the Company's plans for 2015 and beyond once this process is fully complete.

Commenting on today's update, President and CEO Dr. Tom Becker stated: "I am pleased that we continue to improve operations at our current Iosorb(R) facilities and we still believe we can make further operational improvements to our plants. In the next few months we look forward to updating the market on our business plan and outlook for 2015".

For further information, please contact:

Dr. Tom Becker, CEO & President

Iofina plc

[monty panesar] 16/11/2014 20:24

Iodine prices appear little changed over last month.

[superg1] 16/11/2014 17:06

It was said Bullmine had pulled back, Algorta too. They were all very chirpy early and mid 2013 but they have fallen silent. Ioditech haven't given an update for over a year.

The fact is they will have all had inventory, so the true picture doesn't appear until inventories run low. EG Even though Cosayach had 38 wells closed in May it probably won't have affected their supply rate just yet.

The various aspects of changes with the market should be apparent some time in 2015. Meanwhile RB could continue to sell cheap iodine just to get cash. Overall their business will be making a loss even with the lithium mine suspended.

If at any time the worsening drought situation means suspended water rights for SQM then the iodine market will fall apart.

In May Cosaych extracted water illegally which was water SQM have rights to. At the same time the environment agency prosecuted Cosayach for damage caused to the nearby national reserve. If Cosayach created a problem with extraction, then potentially so can SQM.

[stevo2011] 16/11/2014 13:20

Is it your shift on IOF ,QFI ,XEL now :) Obsession :Obsessive–compulsive disorder, an anxiety disorder characterized by intrusive thoughtsFixation (psychology), a persistent attachment to an object or ideaIdée fixe (psychology), a preoccupation of mind believed to be firmly resistant to any attempt to modify it

[arlington chetwynd talbot] 16/11/2014 12:57

"a period of low prices that force uneconomic producers out of business is long term good for a company like iofina"

[1madmarky] 16/11/2014 11:34

Bullmine stopped mining around the time of our AGM. I believe that is correct. So by now they would not be supplying any iodine at all.
GLA

[chumbo] 16/11/2014 10:14

kattatogaru

14 Nov'14 - 13:03 - 26749 of 26798 5 0


I like this company but bejeezus you need a strong stomach for it.


Priceless, if a tad understated!

[monty panesar] 16/11/2014 08:51

I agree Mister Big. Not only do IOF have the fraction of the CAPEX they can react quickly when the price rises as it only takes 6 months to build plants.

[monty panesar] 16/11/2014 08:48

In the first half of this year SQM production was down 8% but this will probably be greater for the year as they shut mines in Nov/Dec last year and it takes a few months for the leeching process of finish. I haven't seen Bullmine mentioned for months. Weren't they the other high cost producer?
Can't see the administrator for RB letting the mine continue much longer.

[mister big] 16/11/2014 08:30

The interesting point on iodine prices is that the world demand and supply is quite balanced and the current price weakness may lead to a lot of the mining activity that is not profitable ( high cap ex high cost ) to come off stream . As we are discovering in the diamond business capacity taken off during 2008/2009 diamond crash does not come back easily .
Hence , a period of low prices that force uneconomic producers out of business is long term good for a company like iofina . Diamond prices in what is a much bigger market than iodine have doubled since the fall out.
Iofina if it positions itself well could be a major beneficiary when the market turns because it's business model would allow for expansion into higher prices when full scale mining of iodine requires massive cap ex .
I see very similar characteristics to diamond market where we are seeing higher demand and higher prices - new mines simply not coming on stream.
Sunday thought for you all! Patience !

[superg1] 16/11/2014 07:53

Mag

At best if they had a flyer then I would expect them to break the 350mt guidance. Too little time left in the year to hit that sort of figure.

1MM

Just as a reminder Sirocco said they stopped supplying in H2 last year due to their long lead times forcing them to sell iodine at lower rates.

That didn't make sense as they were talking 12-14 weeks lead times and we now know they had an inventory.

The fact was India stopped much of it's imports in H2 2013 and they are one of the main buyers for Sirocco. Now we see they seem to be selling at daft prices.

I thought RB were playing an accounting game when they announced $22 per kg costs as that was when they were about to go into talks for funding.

Funding talks failed and now they say roughly $26. In other words probably higher. The website page says $27 to $35 per kg forecast costs.

Wage rises, 7% tax rise, FUT to go, and carbon taxes all coming in within 18 mths.

[1madmarky] 15/11/2014 21:44

If RB's operations are suspended then there would be a pile of rocks slowly leaching thier iodine out if there is water of course. If there is someone there to collect it there would be a supply for the next 6 months at best. Else another significant supplier is no more. Extremely good news for us