Iofina Share Discussion Threads

[rhwillcoll] 24/3/2015 20:43

Superg1: that's the kernel - well said re SQM and Chile:

"What is going on in Chile is highly relevant in terms of the iodine
prices and disruption to supply capabilities, as many potential
production issues are queuing up."

[superg1] 24/3/2015 20:34

Going on from that and as in previous posts I can see how IOF could get into the teens re production costs and lower. It all depends on their performance.

There are some potential factors if they had a big JV partner where they could take opex down levels that would make the main producers eyes water.

That's why I like the business as the others in the industry can't do a lot to stop them in terms of capex and opex.

With iodine being commercially rare there isn't a lot anyone can do to get into the industry if the price takes off either.

The only issue for IOF is getting to material production while maintaining a strong bank balance. They could dilute if they wished but they are not in favour of that. Many companies seem to go via share dilution and throw cash away for the fun of it.

IOF are just trying to keep cash tight, and dilution to a minimum. They are thinking long term.

[gadolinium] 24/3/2015 20:33

I don't know if this has any significance or not, but I thought I would post it anyway!

Looking through the Zauba site for imports of iodine into India, I noticed something rather odd regarding iodine imports from the former Soviet Republics of Azerbaijan and Turkmenistan.

Azerbaijan shipped 113.7 MT and 111 MT of 99.5% iodine into India for the years 2013 and 2014 respectively. However, all shipments ceased after 28.11.14. See link below:



Similarly, Turkmenistan shipped 184.5 MT and 265.8 MT of crude iodine into India for the years 2013 and 2014 respectively. But, again all shipments ceased after 29.10.14. See link below:



I can't find a convincing reason why these shipments have ceased. Iodine is produced together with bromine from oil field brines in both of these countries. The USGS for 2015 estimated 2013/2014 iodine production for Azerbaijan and Turkmenistan to be 350 MT and 500 MT per year respectively, which suggests India was a major customer for their product. Regardless of this, the withdrawal of supply from these countries (if that is what it is) does not seem to have impacted on the depressed iodine price in the Indian market.

[superg1] 24/3/2015 20:01

barrywhit 24 Mar'15 - 16:13 - 30878 of 30883 7 0 (premium)

I can not agree more alphacharlie.........it seems from reading the thread that IOF will only succeed if everyone else fails or ends in jail......

Barry, how do you work that out as it's forecast and already suggested to some extent that IOF are one of lowest cost producers, and that is while they have seen significant disruption.

SQM in the last results called themselves the lowest cost producer in Chile after years of saying they had the lowest cost in the business.

The only new arrival to change that view is IOF.

The success of IOF does not rely on the failure of others, it's in their hands.

The only thing holding them back recently is cash in the bank, and consideration of the next SQM move. It wouldn't be wise to splash out the cash, strip the bank balance, then find SQM take it down to $25 per kg.

It's much safer to sit with $10 mill in the bank. Let some water go under the bridge re the change of strategy for oil companies and the Chile situation. Within a week the RB circs potential final chapter will be known.

SQM also said some Chile producers are on losses at this price. That is probably Algorta and SCM Bullmine who use seawater.

What is going on in Chile is highly relevant in terms of the iodine prices and disruption to supply capabilities, as many potential production issues are queuing up.

[joeblogg2] 24/3/2015 18:49

Fest. only good news will do as we have had more then our share of bad but whether we get it is another matter.

[festario] 24/3/2015 18:41

AlphaCharlie, my thoughts exactly!I still hold here, but rarely look in.I kind of wrote off my IOF holding, but didn't sell.It would be great to hear some news of any kind from the company.

[freshvoice] 24/3/2015 18:41

water link works again.

[freshvoicem] 24/3/2015 18:01

AC. 100k late sales today, that's why the share price keeps drifting.

[alphacharlie] 24/3/2015 16:38

Apologies to buywell re stating it was a current RNS; he'd re-posted an older post. Also apologised on the thread next door. But the question (for buywell) re the value of a 7 year old report is still valid.

[barrywhit] 24/3/2015 16:13

I can not agree more alphacharlie.........it seems from reading the thread that IOF will only succeed if everyone else fails or ends in jail......

ps. we don't seem to have heard from the modestly named Misterbig lately...

[alphacharlie] 24/3/2015 16:08

Well, although I still hold a considerable number of shares, I've just about reduced my interest here to reading the various Iofina threads now and then. For the most part of last year the threads were essential, daily reading. I haven’t commented on anything for some time.

We must be close to a monthly (or should I say three monthly) update re production and some news of water which constantly seems to be just days away.

Talking of water, I noticed this from a post earlier this morning re water shortages in the USA, on the ‘Holdings in Company’ thread next door:

buywell2 - 24 Mar'15 - 08:46 – 8851

. . . This RNS today might not be the last of its type



Which left me wondering why a report dated June 2008 i.e some 7 years ago, - the general content of which has been done to death here about - is now suddenly significant and why the poster implied that it was current. The fact I cannot find any ‘RNS today’ is another matter. Perhaps buywell (if he reads this) might expand?

But until Iofina release 2014 results and we are able to see how well they have done re actual iodine sales as opposed to the generality of their other chemical sales, we seem to be mostly debating updates of the plight of bent Chilean miners, with the odd comment on expectations of that ‘aged’ strategic review, predictions re mini-pads and new sites, takeovers and, of course, joint ventures re the afore mentioned water.

Pre Christmas, there was an attempt by management to stop share price volatility by reducing the number of production updates. Indeed, this worked to the extent that the price, instead of bouncing up and down, just slowly drifted down.

Result or what?

So I’m left wondering how Iofina will manage all this impending news (which may not be all good) in a way that doesn’t cause subsequent and successive bouts of price volatility and what they will say if average production is out of kilter with expectations based on last years numbers, never mind the talk of a 50% increase year on year.

[barrywhit] 24/3/2015 15:13

All the problems elsewhere, don't seem to be helping the IOF share price, still very under valued...IMO....an update from the company would be very welcome...

[superg1] 24/3/2015 14:57

SQM tax fraud with 2 other companies named as providing false tax documents.

The Internal Revenue Service (IRS) filed Monday before the Eighth Court of Guarantee Capital a criminal complaint for tax crime against the legal representatives of the company Sociedad Quimica y Minera de Chile (SQM), so that they are investigating suspected of tax crime by improper reduction of the taxable profit of the company, to register as an expense on their bills and report false accounting fees.

Criminal action is also directed against two other companies, SPA Reactor and Consultancy Cristina Paredes Andrea Zuniga, who provided false tax documents that allowed the commission of the crimes.

In a statement, the regulator said that this request is founded on the evidence found by the Department of Tax Crimes of IBS during collection and analysis of history that has been developing in recent months, which has included inter alia disclosure requirements, subpoenas and taking statements from the legal representatives, processing of accounting records, and the subsequent crossing with third party information and the contrast with the available information in the databases of the Service.

"The amount of the tax loss resulting from the detected offenses determined in the course of the investigation," says the agency.

"As noted in connection with this case and others that are also under review, IBS will use all legal powers to pesquisar operations that could have generated undue tax advantages, and if as a result of the application of this procedure tax differences or tax offenses are detected, submit the respective actions before the courts or before the Public Prosecutor, as appropriate, for sanctions to proceed according to the law applied, "the statement said.

The bank also said that shortly present a new complaint also against SQM and other taxpayers for the same offenses mentioned in the lawsuit on Monday, that covering the tax periods from 2006 to 2014.

[superg1] 24/3/2015 14:50

Th T/O talk is ICL who have their own problems so probably just talk from them.

However I would be surprised if Potash doesn't make a move.

They would need to be aware of the CORFO and water rights hurdles though.

[joeblogg2] 24/3/2015 14:20

With all this news on SQM, investors in US seem oblivious as the share price seems to be doing ok or I suppose supported by takeover talk. Our own next update needs to show good progress if we are to fill any shortage!!

[superg1] 24/3/2015 14:10

I like that one.

Julio Ponce states for three hours and assures feeling "so calm"

When the poop is that deep and vast, all you can do is get a hamlet cigar out and relax, as the game is over.

[freshvoice] 24/3/2015 13:40

The Internal Revenue Service (SII) enlist a new complaint ballots services not provided to the Mining Chemical Society (MCS) as part of the investigation into alleged illegal political contributions.

The action would be "for tax crime against the same company SQM and other contributors" and cover the corresponding tax years 2006 to 2014 period, allowing the Attorney expand its proceedings until now confined July 2009.

After sue yesterday against senior executives of mining companies and advising Pablo Zalaquett , one possibility is that now the service point against the first names related to the New Majority politicians that emerged in this edge, confirmed by the information itself that the Julio Ponce Lerou company sent to regulators.

Including the son of the deputy DC, Roberto León, Roberto Javier León Araya, the two advisers of Senator PS, Fulvio Rossi, Irma and Mariela Cayo del Pilar Molina, former Chilean ambassador to the Czech Republic and militant DC, Marcelo Rozas would ; his wife, Michelle Reimond; and the son of this couple, Daniel Rozas Reimond.

According slogan La Tercera , writing eventually also a list of 19 people who have been ticketed trout SQM, in order that they are being investigated by the prosecution would be annexed. Among them, ensures the morning, a report card linked to the current General Secretary of Government, Rodolfo Baier, issued in 2013 for $ 6 million would be found.

However, after the government information sources La Moneda will check they assured The Clinic Online that Baier actually have served to justify a document issued in his name, so consider the inquiry is not binding end up being subject a direct denunciation of IBS.

Also, the Secretary General of Government, Alvaro Elizalde, minister said Baier told him that "it is not a partner or director of the company," and that in any case "us as we have repeatedly stated, we believe there to let the prosecution carry out investigations to fully clarify the facts. "

The same is noted from the Radical Party, whose president, Ernesto Velasco said that "what we have heard is that he has never been a partner of Sin Kapital. What he told us in a minute is that he worked as a freelance journalist, freelance, but more background that I have. "

[neddo] 24/3/2015 13:10

these countries are so corrupt , that the peso can sort anything out and buy any one , even the judiciary?

[awolagain] 24/3/2015 12:11

No matter the outcome with SQM we will see some disruption to the business in the short term and customers for Iodine will be looking for a new source from a reliable company....IOF

[1madmarky] 24/3/2015 10:54

Just continue reducing costs and planning where to place the next plants / mobiles. They were changing the chemical mix, hopefully that testing will deliver tangible results. Once the future price of iodine is clearer and higher then start expansion again. Not committing to capital outlay now is probably a good idea as we will have more options going forwards for both iodine and water. AIMHO

[monkeymagic3] 24/3/2015 10:39

What would you do if you were IOF?

[phoenixs] 24/3/2015 10:37

superg, If I were SQM I would turn off the supply of iodine and wait for the price to rise which I suspect would be soon.

[superg1] 24/3/2015 09:08

Nap

It's an interesting situation. SQM took the price of iodine down to strangle competitors who had inventory and to devalue them re a T/O. I am absolutely sure SQM had Cosayach in their sights.

Now it's turned on them as the predator has become the prey and their price war has devalued their own business. So what next?.

The obvious choice with vultures circling is to up the iodine price as SQM control that. They have no real influence on potash or lithium but they can take the iodine price up and justify it.