Iofina Share Discussion Threads

[arlington chetwynd talbot] 28/1/2015 00:17

You told everyone that this debt would be no problem (look back people)

As I said at the time you will not pay the debt and the stock will never cover the other way out.

You have again been found wanting Graham, please do not poison anyone else.

Strong sell.

[arlington chetwynd talbot] 28/1/2015 00:13

Are you admitting we are defaulting Graham?

[arlington chetwynd talbot] 28/1/2015 00:12

'If Stena demanded payment at the relevant time then they could take a loan'

Or you default Graham?

[superg1] 27/1/2015 23:49

hmmmm

All this comes just as the ex mining minister has been charged with offences re the corrupt award of the lithium tender to SQM.

SQM offices raided in relation to that, and prior CORFO are trying to rescind SQM lithium leases over non payment.

Are the Chile gov trying to kick SQM out of the business?

[superg1] 27/1/2015 23:37

CORFO

It's all becoming clear now. I take it this report shows why CORFO are trying to regain control of the lithium leases SQM have.

news just out



'Some of these agreements are controversial: SQM, controlled by a former son-in-law of military dictator Augusto Pinochet, is currently in arbitration with state economic development agency CORFO over alleged underpayment of rent for such concessions.'


'The government plans to develop state agencies to regulate and partner with private investors to develop lithium. This could take the form of a new state lithium company or a specialist subsidiary of CORFO or state mining firms Codelco or ENAMI, all of which own lithium concessions.'

[superg1] 27/1/2015 23:35

Cyber

I'm with you. It was a measure to try and avoid dilution and another topic I discussed at coffee time at the AGM.

Banks (no not that banks) only tend to lend money when you are making money, which defeats the object of a loan.

If Stena demanded payment at the relevant time then they could take a loan to pay it off etc.

I've seen this discussion before and if Stena are the type to stand their ground why did they kindly change the terms.

[che7win] 27/1/2015 22:38

Boggle / Cyberbub,
I agree with both of you.

However, we can see with hindsight Lance and the new team have been very professional in stabilising the business, capitalising the business, and making the current business work as efficiently as possible.

This was the right thing to do and gives us a strong position moving forward.

The best has yet to come, I like the approach of our management team here, feels like a safe pairs of hands.

[arlington chetwynd talbot] 27/1/2015 22:25

You need $10m at the next round.

Graham won't tell you this.

[cyberbub] 27/1/2015 21:55

I don't think there is any problem with the $20M debt at all. I have long since assumed that it will be converted. The dilution would be only 10-15% or so, which is a small price to pay if the money has been used responsibly to take us from a start-up to being a fully-fledged major iodine producer by next year.Just my view.

[bogg1e] 27/1/2015 21:53

Che, tis true what you say about organic growth, but I really do want to see Lance pushing ahead with more infrastructure. With the money clawed back this year (about 5 mil) then he can pay for 2 plants up front, but money either from JV or from the water partner, would give Lance so much more flexibility.

[1madmarky] 27/1/2015 21:48

Iodine production ramp up from mining ~ 6 months. You have to get it out of the ground, pile it up in a pond, wait for the iodine to be leached out then process the water (evaporation) to concentrate the iodine....

[che7win] 27/1/2015 21:39

Superg,
Yes, CORFU could revoke SQMs lithium licences, they also determine the quota for lithium extraction.

A lot of litigation in Chile :-)

[arlington chetwynd talbot] 27/1/2015 20:58

You need $10m Graham, or filter.

[arlington chetwynd talbot] 27/1/2015 20:09

The truth of the price war never hits, until you hurt.

To consistently state how bad Chile is doing merely exposes you.

I am right.

You need another $10m.

?

[che7win] 27/1/2015 19:51

Superg,
Enjoy:

[che7win] 27/1/2015 19:50

I disagree about the under funding, iodine price recovery on its own gears up profits that will become self sustaining growth.

[monty panesar] 27/1/2015 19:16

Superg or others,

If the iodine price suddenly spikes(as it did in 2011) how quickly can the Chilean producers start up old mines and what time frame is it to get that iodine to market?

Tia,

Monty

[superg1] 27/1/2015 19:03

Bog

Under funded rapid expansion yes, under funded as a runner by business, no.

As you know one plant in the right place can be worth 3 of other plants.

I think the plan includes plant costs down, so it's not as it seems. Any winter issue has not raised it's head to date.

The loan note will look a lot less if a Jv payment arrives. Folks disregarding that need to catch up.

[bogg1e] 27/1/2015 18:10

Netters, totally agree about the current underfunded situation and the $20 mil debt that matures in 2017 still looms large in the accounts.

[arlington chetwynd talbot] 27/1/2015 18:03

Business as usual is not the answer bud. You need a massive capital injection here, and as a quoted company with no profit, it will be dilution. There is hope, but despite everything Graham bombards us with... we are massively under-capitalised. I'm right.

[bogg1e] 27/1/2015 17:57

BAU?

Regarding the capital issue; if the water hearing, scheduled for 19th february, concludes in Iofinas favour, then we should hear (hopefully fairly quickly), how much capital Lance has to invest in growth and how hes going to do that. Part of Lances issue, is sites v plant type v costs; he has over 100 sites to choose from that are viable for high production (ie IO2 or better) and three possible versions of the technology to apply to these sites; an IO plant at $2-2.5 mil, an IO plant minus the crystalisation unit at $1.5 mil or a mobile at $850k. We know they have "low hanging fruit" in mind, but even so he has to do the maths on numerous sites and configurations. Personally I think Lance will want to complete the first phase as planned, ie 2 more standard IO plants and then maybe 2 mobiles to field test. That would come to $7 mil. With a cash injection however much if not all of this cost can be covered without risking the capital Lance has worked hard to claw back. Its exciting.

[arlington chetwynd talbot] 27/1/2015 17:44

Thing is bud, we need more than BAU, we need substantial capital invested here.

Something your research omitted.