Iofina Share Discussion Threads

[bobbyshilling] 19/11/2014 16:10

Rogerbridge, nice one. I bought a few more last week too. Possibly the last chance to add at under 40p as share price might begin to rise as we approach water permit finalisation.

[che7win] 19/11/2014 15:59

Superg / Bocker, Looks like Cosayach is up against it.So far we have Bullmine, Rb Energy, Cosayach and even SQM closing or shutting down production.Can't wait to see the effect once inventory has run down.

[rogerbridge] 19/11/2014 15:47

The share price here is ridiculously cheap, bought some more yesterday for the wife, an early Christmas present. And one that will grow in value rather than depreciate.

[angel of the north] 19/11/2014 15:38

Surely, in order to save jobs and the economy they will be allowed to repay over a period of time?

[cyberbub] 19/11/2014 15:31

Many Latin American countries tend to use the '$' symbol for their own currency as well as US currency.... it's a bit confusing I know!

[superg1] 19/11/2014 15:27

jam

I quoted the dollar version which is $82 million in false tax losses. 9 face charges. The full document is available to view but in Spanish.

TFC with their water theft they had gone over 3000mt. So 3000 to 3,500 would be my guess. It would be very nice indeed if RB and Cosayach get wiped out in the coming months.

If those figures are right (they seem to be) I can't see how they will survive. I suspect like Bocker said there is more to some once they pick through all the seized documents and computers.

I see an end game down the road of SQM taking out what is left of Cosayach to get that seawater pipeline permit Cosaych have.

It's a left field event of quite a size it seems and I have yet to digest it all.

I'm sure if someone had been tipping IOF, they would be all over the recent RB and Cosayach news.

Better this way that our limited investors get the view from the front seat.

[the fat controller] 19/11/2014 15:11

superg,
Please remind us of Cosayach's contribution to the world output?
TIA TFC

[bocker01] 19/11/2014 15:04

SQM are unlikely to miss this opportunity to put the boot in further. I expect more developments detrimental to Cosayech.

[superg1] 19/11/2014 14:47

On the face of it, Cosayach look completely screwed.

Potentially and probably $270 mill to $500 mill to pay in court orders, tax fraud and fines and it won't end there.

If they were a public company the share price over the last few days would tell you what is going to happen next,

TBH I didn't see any of that coming and what a bonus that will eventually turn out to be.

It's only raised it's head over the last week. I anticipate RB energy and Cosayach will both be gone within 3 to 12 months. :-)

[superg1] 19/11/2014 13:52

So much Cosayach chaos all at once.

First the 38 well closures in May and a boss sent to prison for 61 days.

Then came the Cosayach head man dealt with for the Paraguay immigrants case.

German bank successful claim against the group for $70 mill that they avoided paying.

In the last few days $120 mill re that article just posted.

Then add on the recent $82 million of false tax losses offices raided this month and I'm sure more problems will be found.

Excluding the fine potentially 4 times the tax dodge, that looks like they have been hit with $272 million that they will need pay.

Someone thought the tax evasion figure must be wrong, but it's not it's listed in the charges document which can be viewed.

It basically says

'Through this organisation fraudulent tax losses of $48.38 billion pesos'

[che7win] 19/11/2014 13:22

Bogg1e,
At current share price, I would agree.

[superg1] 19/11/2014 13:21

Cosayach even more chaos

I was hunting for some facts on the latest potential huge payments and fines to come and stumbled across the article below.

It sounds like the group of companies has been hit again with an order to pay $120 million.

Report date 13th November 2014

The origins of Hipermarc as company date back to 2007: In that year still known as supermarkets Unimarc A ruling by the Supreme Court sentences Inverrraz (matrix Supermarkets Unimarc) a. pay about $ 120 million to S tate Street Bank and Trust Company for an unpaid debt by an exequatur procedure (which runs in Chile judgment rendered abroad). This forced Supermarcados Unimarc to sell the chain of 42 supermarkets in Chile, which ended the long dispute between the two companies.

The full text of Hipermarc claims regarding this ruling here.

Unimarc Supermarkets was on the long list of companies constituted Errazuriz group solidarity guarantees and debtors (Unimarc Supermarkets, National Fisheries, CIDEF, Forest Industry and Cosayach among others) Inverrraz loans taken by the State Street Bank in 1994 and 1996. Upon the decision of the Supreme Court run, all of these companies had been liquidated and no, they had already transferred their assets to other companies no guarantees or other jurisdictions. The result is that Supermarkets Unimarc, the only guarantee with property in Chile, had to pay the debt Inverraz, which led her to become even earned his own parent to buy some of the debt papers kept with Statate Inverrraz Street Bank.

"On December 14, 2007 Hipermarc SA in its capacity as joint debtor, according to judgment of the Supreme Court of Chile, dated May 14, 2007, paid the amount of ThUS $ 88,120 credits earned by Inversiones Errazuriz Limitada State Street Bank and Trust Company and registered in the Central Bank of Chile under the numbers 1-29170 of August 24, 1994 and 1-31733 from March 7, 1996, making some money with a percentage of the debt was incurred and in turn quenched by 100% its own obligations.

With this, Hipermarc SA has been released from collection action and contingency over previous credits and initiate legal action to the original debtor in a competent court. "

Excerpt from the annual report 2008 Page 74 Hipermarc on.

Inversiones Errazuriz certainly gave a battle tooth and nail against the creditor; anything to not pay the debt you owe more than a decade. He clutched at first instance, the fact that the opinion of the New York court was prescribed:

"In our view the actions of the opposing party, State Street Bank and Trust Company, are prescribed, prescription and did assert and reiterate, once again, at any new trial that the party intends to start against us."

...

"In the event that the State Street Bank and Trust Company, decides to operate against us again, deduct the appropriate exemptions, claims and defenses, including necessarily find the limitation of actions emanating from the judgment of the courts the State of New York. "

He also tried to grab the figure of statute novation contract with State Street Bank, by the fact that it endorsed and transferred the debt notes then transferred to third parties.

"This is without prejudice to the Docket No. 5930-2003 record, the 27th Civil Court of Santiago, the case" Inversiones Errazuriz Ltda and others with State Street Bank and Trust Company ", whose applicants are Supermarkets Unimarc SA, continues with the conduct of the trial in which we sued for a declaration that State Street Bank and Trust Company ceased to be a creditor of the plaintiffs in care have endorsed notes and assigned and transferred them to third parties and obligations Under mutual extinguished by novation in the way that is expressed in the claim "

Despite all this, the law prevailed. The exequatur judgment ruling by Supreme Court, t iene closely related to Article 16 of the Civil Code of the Republic of Chile:

"Art. 16. Assets located in Chile are subject to Chilean law, but their owners are foreigners and non-resident in Chile.

This provision is without prejudice to the provisions contained in contracts awarded validly strange country.

But the effects of contracts awarded in foreign country to be met in Chile, shall conform to the laws of Chile. "

Supermarkets Unimarc was clenching and comply with the law by paying the debt of its parent Inverrraz Aval in character and joint debtor. For this hand made ​​to your local supermarket chain, which sold to businessman Alvaro Saieh .

What became of this company was renamed Hipermarc an opaque society accounts without a specific gainful activity.

This blog will delve into the business of Hipermarc. Hopefully this time will not be as dark as its predecessor Unimarc Supermarkets. Hopefully.

Download PDF

[bogg1e] 19/11/2014 13:17

Che, theres a lot of options soon to become available me thinks, especially if the water licence update includes a JV announcement and a cash injection. If so, i would liek to see some cash spent on reducing loans. $20 mil hanging over them is manageable if all goes well, but to reduce it by 25% when the opportunity is available wouldn't be a bad thing.

[che7win] 19/11/2014 13:09

Two 12,700 share deals looks like a rollover.

[che7win] 19/11/2014 12:56

If they are sitting on a possible $20m cash pile going into next year they will have more cash than they know what to do with.

An outright water sale is bound to fetch $30m or so, what would we do with that cash pile?

Maybe they expand the derivatives side more, sales up 25% which is looking very healthy.

Or maybe they use some cash to share buyback if the share price stays at this silly level and use the rest on a plant 7 and 20 or so mobiles.

Or maybe they go aggressive and expand ahead of iodine recovery with most of the cash.

In any case, SQM is doing what they can do best, cut costs, cut expensive mining which they have done and keep producing from their most efficient mines. They have shown to their rivals that they are going to hurt them and aim for 30% margin share which is the right approach for them competing with Chilean rivals.

Is our patent for Japan a possible way for the Japs to expand production?

SQM - Nothing they can do about us, we are cheaper and getting cheaper all the time so we will always be last man standing as Dr Tom stated this week:
"we still believe we can make further operational improvements to our plants".

I used to think SQM were like Tesco, but maybe they are more like Asda, they will try to maintain market share by looking to maintain 30% supply, taking supply away from the Morrisons / Sainburys etc of the iodine world.

Meanwhile, very little (Lidl) they can do about IOF...EXCEPT for one thing...they can take us over. We can grow regardless of the iodine price and we have a vast unexploited customer base on our doorstep with customers stating they would like a US supplier.

We are also more important than ever to the O&G partners as we cut their costs which they are doing themselves anyway...fracking has come a long way in the past 5 years, it's becoming more efficient as time passes so it's here to stay and costs are falling.
I bet the supplier to the io2 SWD site is very happy to have us onboard.

[muffster] 19/11/2014 12:29

Thanks all, will re assess.

[che7win] 19/11/2014 12:27

Oh, and a cash pile which could jump to $20m by end of year. I think we are 10p too cheap right now, bound to be some interest in the next week (last week of November) ahead of water updates.We could hear some very interesting news within the next 2-3 weeks.

[che7win] 19/11/2014 12:24

I reckon we are profitable currently hence the cash pile is growing.

Iodine supply going into the derivatives business which is up 25%.

Plants continue to be tweaked which we know they have stated an aim to get under $20 per kg costs, so margins should be maintained for now and we're on our way to the lowest costs in the industry.

Water business we await news which could be within two weeks.

Production bang on meeting forecasts, you must be looking at a different company from the rest of us.

[muffster] 19/11/2014 12:12

Not far off NAV of 24p. Im guessing this will head back down as last Rns not detailed enough. Still loss making and hugely speculative.

[che7win] 19/11/2014 11:54

Tpl up 10%, plenty more to go imo.I reckon 30p minimum pending more news.

[orslega] 19/11/2014 11:46

sg1 - exactly - these analysts must be pretty thick buying that line....if they'd followed SQM properly they will surely know the real reasons for EBITA improvement.....downward spiral...

[superg1] 19/11/2014 10:05

A quick Cosayach update.

The authorities on a court order have raided the Cosayach HQ (as below). The Cosayach fraud is estimated at $82 mill of unpaid taxes. The penalty for that can be dished out is 4 times the amount which is over $320 mill. The starting point no doubt will be $82 mill plus a significant fine on top of that. The Cosayach businesses already have to pay $70 mill to a German bank after a recent case. Potentially this year could see the beginning of the end of Cosayach. Such things take time, but it seems they will be significantly affected when the investigation concludes.

'The prosecutor Chong became the National Income Building Errazuriz group at 10.00, with a large contingent of staff of the Economic Crimes Squad (Bridec) Crime Laboratory and the IDPs, who were recording five of the seven floors of the building.
The aim of the operation authorized by the Seventh Court Guarantee Santiago aims to seize documents, computers and other material related to transactions by the conglomerate in recent years.'

The details they comment on include up to the end of 2012. I suspect they will find a lot more for 2013 and 2014 as Cosayach increased production by water theft, so there will be more fictitious accounts popping up.