Iofina Share Discussion Threads

[superg1] 31/1/2015 17:48

I just did some maths which I won't bore you guys with, but one imo simple strategic decision and opex for 750mt could drop by $6 mill per year.

By my guesstimates and being conservative based on info out there, a $1.5m to $2m mill spend could take $6 mill per year to the bottom line.

Existing iodine producers can not get any where near the potential drops in opex per kg IOF could.

So I can see why Tom expects it to be an exceptional year. An opportunity beckons to transform the margins.

[hurricane.] 31/1/2015 14:43

Oil Prices Skyrocket on Friday -- Is This The End of Cheap Oil?
By Travis Hoium | More Articles
January 31, 2015 | Comments (0)

hxxp://www.fool.com/investing/general/2015/01/31/oil-prices-skyrocket-on-friday-is-this-the-end-of.aspx

[kaos3] 31/1/2015 11:33

Thank you SG1.

[superg1] 31/1/2015 11:30

Iodine opex gearing.

It's quite clear G and G placed 1 or two plants in lower ppm areas. It's also clear that io2 and 6 are good sites, with 4 sounding like it's an ok site.

I'm not sure about 3 they haven't said enough about it yet.

They plan to target higher ppm sites we all know that, that is what the review is all about.

Plants are more or less the same re fixed costs and employees, they just differ significantly on opex due to individual production rates.

So so just picking on figures if they are on a 500 mt rate @ $25 per kg opex and add 100mt through efficiencies and less brine disruption then the opex in theory drops to $20.83 500 x 25 /600) = $20.83 per kg.

If they add one good plant doing 200mt which is well within the ppms and bpds said to be available:

6 plants doing 500mt (83.3 mt per plant) at 25 per kg means 7 plants doing 700mt would be the same result of $20.83.

Taking the first 6 improving by 100mt overall and a 200mt plant then the opex drops to $18.22, just by less frack disruption/more brine and a reasonable plant.

Then every time you add another big plant which produces more than the average rate the opex goes down.

So when Tom said they plan to get into the teens re opex, it sounds like a tall order until you do the maths, and that sort of opex is well within their grasp.

If G and G had put the plants in the right place, it would be well into the teens by now, but it won't take a lot to correct it. It's just ridiculous that they wasted the money, as with a little thought it could have been far better used.

I'm not using daft figures there and look at the gearing effect.

There will be variations re royalties and other factors but basic fixed costs will be very similar.

If in the future they were running well with good iodine, they could at any time dump io1 if it does the old reported 1 mt per week, or slides that way (me speculating on logic). Opex then immediately goes down per kg.

So as it stands they are not on the best available sites which means opex will be going the right way, and well below what Chile can do. Chile will see rising costs especially next year.

5000mt extra production will be needed over the next 5 years going by the long term growth rate, and market forecasts.

[superg1] 31/1/2015 11:01

Bog

As in my previous request can you engage him on his own thread, or if necessary at his HA or local pub.

[cyberbub] 31/1/2015 09:16

Interesting little spikelet at the end of the session... perhaps someone not willing to risk a positive RNS Monday morning?

[bogg1e] 31/1/2015 00:08

ebrius barum surely?

[arlington chetwynd talbot] 30/1/2015 23:53

I'm falling in love with you.

[roger melly] 30/1/2015 23:44

Oh sod off Netley

ebrius stultus

[arlington chetwynd talbot] 30/1/2015 23:14

I'm quite impressed you took the time to pop full stops after each letter MELL, you are rising fast in my estimation, even if it was wrong and unnecessary.

quod erat demonstrandum

You cared though, and that's good.

[bogg1e] 30/1/2015 22:58

Faaaaaarrrrrtttt.

[roger melly] 30/1/2015 22:55

Right of passage? Bog you do talk out of your back passage a lot!

[arlington chetwynd talbot] 30/1/2015 22:53

A learning curve?

[bogg1e] 30/1/2015 22:50

Ahaar, a right of passage as it were :-)

[arlington chetwynd talbot] 30/1/2015 22:44

Everyone will turn against you mate, then, and only then, do you become a poster, that people will listen to. You'll buy better stuff too LOL

[arlington chetwynd talbot] 30/1/2015 22:42

You will come on here (shut up Melly!) and say you have sold.

[bogg1e] 30/1/2015 22:39

Act, I care not for franchise! Just cos i think it may go lower for a wee while? I don't spread bet or cfds, so i have no immediate gain to be had in the price falling, except the potential opportunity to buy more if the market panics over the next thing to panic about and IOF hold off on positive news for a while.

[arlington chetwynd talbot] 30/1/2015 22:29

You are a good guy mate ;)

[roger melly] 30/1/2015 22:05

ACT
Yep, Conservation and Protection ;-)

[arlington chetwynd talbot] 30/1/2015 21:50

btw, one red was mine mate, not because I didn't like it. LOL

[arlington chetwynd talbot] 30/1/2015 21:48

So what you saying MELL? Or just c&p lol ;)

[arlington chetwynd talbot] 30/1/2015 21:36

Bogg1e,

I fear you are becoming disenfranchised here?

Would you care to respond?