Iofina Share Discussion Threads

[pleco] 18/11/2014 11:53

Could people please remind me when is the last day for objections to the water permit. I hope to have funds in 2 weeks to buy some more shares.

[superg1] 18/11/2014 09:15

The FUT system as reported

What is unique to Chile is that the system allows companies to roll over earnings in an account called the Taxable Profit Fund, known by its initials in Spanish as FUT. Chilean companies held about $270 billion in FUTs at the end of 2012, according to the tax regulator, equivalent to the country’s GDP.

The FUT enables professionals, businessmen and wealthy individuals to put their earnings into paper companies and postpone the personal tax on that income indefinitely. Many include other family members as shareholders, dividing up the income when it is withdrawn and lowering their personal income tax bracket.

“The FUT helps people elude taxes and is being used for something for which it wasn’t created,” Alejandro Micco, an economic adviser for Bachelet, said at a conference in Santiago Oct. 4. “There is a bad use of the incentive.”

[superg1] 18/11/2014 08:29

I was thinking on what action RB may take re the iodine mine.

The court protection lasts until 30th April. They still have a decent amount of inventory.

They forecast roughly $26 per kg production costs with a selling price recently of under $31 by them. That won't cover all the other costs like admin etc.

Late Q4 is generally the slow down time for iodine demand. With their inventory they may decide to suspend operations to preserve cash as they have the inventory to sell.

[crosseyed] 18/11/2014 08:27

superg1,

Tax avoidance, not evasion. The FUT is a legal arrangement that, as you say, is likely to end soon. Tax evasion is illegal. Whether or not one approves the ethics of FUT, its use is within the law of Chile.

c

[bocker01] 18/11/2014 08:10

Well the good thing is that they clearly expect to announce a JV within the timescale of the strategy update. As JV will be RNSs'd we can either expect news of a conditional one subject to water award fairly soon, or an unconditional one in December. In any event it should come before the strategy update.

[bobsworth] 18/11/2014 07:44

Hurricane from the brief answers I got back from Iofina yesterday I have concluded there will just be one statement covering both the operational strategic review and business growth plan.

Here are the exact questions I asked with following replies.

Question 1
In today's RNS it mentions that the Company's management team is in the process of finalising its next business growth plan and hope to publish it in the next 2 months.
Is the business growth plan different to the operational strategic review that the management team were aiming to complete by the autumn or is the same thing?
Please clarify.
Thank you

Answer:” Slightly different. Takes that data and puts it to use.”



Question 2
Thanks for clarifying.
Can I therefore assume the outcome of the operational strategic review will be reported separate to the 2015 business growth plan?

Answer:” No it will include the same and I would imagine same time”

[superg1] 18/11/2014 07:43

They will either have $7.5 mill in the bank with iodine plans and a water depot to pay for. Or potentially $20 mill plus with no depot to pay for.

Right now they don't know, as they have just got he PDTG BUT the permit has yet to be awarded subject to no objections. If objections then a hearing and eventual award.

I expect the plan to vary materially depending on the above scenario.

I suspect a JV with various options will appear. I won't right off the complete sale of the water side in view of their comment to become number 1 in the iodine sector. With some Chile folk struggling, and the range of cost rises for them over the next two years, an aggressive move by IOF could hasten the end of some Chile mines.

[1madmarky] 18/11/2014 06:54

Bit of a storm in a tea cup. The company seems to be doing fine even with depressed iodine prices. We will hear thier plans soon enough. Then hopefully we will be looking forward not backwards.

[roboben] 17/11/2014 22:34

Yes, I fully accept that, Spike. I fear that it may just be me muddying the waters (and I'm sorry if that's what I've done).

Bobsworth, a simple answer to Hurricane's question will clarify things and then I can go back to lurking!

[spike_1] 17/11/2014 22:28

I don't understand why they would announce the results of the review (they never said they would). It is an internal review working out how best to move forward with an updated design for building IO7 etc which will be cheaper to build and (hopefully) run, and more efficient, and more rugged (winterised).

They will then be in a position to quantify the relevant merits of mobiles (un-tested) v larger plant. They will then need so sort out the iodine expansion priorities based on available sites and funds (dependent on any upfront payments for water and any off-take agreements).

Water: once they have completed their 'deal' for a JV (or go it alone), then they will need to allocate internal and external resources, and order long lead items.

In short, once they know exactly what they plan to do - they will most likely tell us, not forgetting they may wish to factor in the state of the Chilean industry as it shakes out.

Frustrating but there we are. Good that they are planing to update growth plans for '2015 and beyond.

Best wishes - Mike

[hurricane.] 17/11/2014 22:10

Clear as mud.
Bobsworth, from your comms, will there be two different statements (operational strategic review and business growth plan at different times ) or One statement covering both ?

[naphar] 17/11/2014 22:00

Rob
I took bosworth comment that there will be one now to be just answer to the question will we get one or two announcements.

[bobsworth] 17/11/2014 21:57

What's clear to me now is that over the next 2 months they will be publishing their 2015 business growth plan that is built on the findings and recommendations of their operational strategic review.

The timing of this plan within the next 2 months will probably be dependant on when they agree a cash upfront JV deal.

The markets reaction to this growth plan should be good if, prior to the plan, they have achieved their year end iodine target, demonstrated reliable & increasing production in Q4 and signed upto some of those long term supply agreements.

[roboben] 17/11/2014 21:53

Well, Naphar, it looks as though we are interpreting Bobsworths latest post differently.

I took him to be saying that the company had now decided to release separate announcements.

I'm usually the one who misinterprets things, though, so don't lose any sleep over it!

Ah well! All will be revealed in time!

[naphar] 17/11/2014 21:26

Roboden
it's not such a big deal in my mind, but they will miss that deadline. We will get one announcement, with the review as part of the business plan/outlook. In a couple of months, or whenever it is ready.
That's assuming Bobsworths latest is now correct and that I understood it right. I find some email/verbal communications can lack clarity.

[che7win] 17/11/2014 20:55

Bobsworth,
Thanks for replying, if I wasn't thinking straight I'd say you had changed their mind or something silly like that!

[roboben] 17/11/2014 19:56

Well done Bobsworth. I genuinely thought that that RNS was announcing that the company was missing yet another deadline in that there would be no announcement of the results from the operational review made this autumn. Not a great crime given the complexities of the current situation but the markets could well punish the share price yet again.

The medium to long term is now looking much more rosy, but I will be pleased to see something else from the company this year - apart from the water news, that is.

[woodpeckers] 17/11/2014 19:49

OK Bob, thanks. :-)

[monty panesar] 17/11/2014 19:18

Good RNS and looks like IOF will be profitable this half. Operational costs have been slashed whilst iodine production will have risen from 139.9t in H1 to 185t+ in H2.
Production seems to be settling down now the issues are being resolved. It would be good if they can enter the new year producing over 50t per month.

Through the most risky zone.

[woodpeckers] 17/11/2014 18:27

Sorry Bob, don't know if I'm having a blonde moment but I'm now confused.

In your previous post you said 'So looks like we will get the outcome of the ops strategic review 1st as planned by the this autumn followed by a 2015 business growth plan in next 2 months.'

Now you are saying 'I emailed Iofina and asked them “Can I therefore assume the outcome of the operational strategic review will be reported separate to the 2015 business growth plan?” The reply I got back was “No it will include the same”.

Are we getting two or one???

[dcgray21] 17/11/2014 16:46

IOF stated 150% growth expectations year on year I seem to recall . I would imagine that was based on organic growth and with a sizeable cash injection those numbers for 2015 and in particular 2016 could shift up a notch or two .