Iofina Share Discussion Threads

[monts12] 25/3/2015 20:44

From today's RN

"On March 20, 2015, we identified to the SII approximately US$11 million in payments that originated from the office of our former CEO during the six year period from 2009-2014 that may not meet the requirements to be qualified as tax expenses under the Chilean tax code because of insufficient supporting documentation. We have been providing the invoices relating to these payments to the SII, and have submitted draft amendments to our tax returns. As far as this procedure is concerned, going forward we could be subject to 35% taxes on payments that did not qualify as tax expenses, as well as interest and penalties from the SII."

[monts12] 25/3/2015 20:40

SG re SQM
The CEO Patricio Contesse walked on 16th March, now they're saying they may have to pay 35% tax on "expenses" ie $11m, that were not allowable together with interest and penalties. Surely they won't be let off so lightly? Depends what the penalties are, I suppose.
Their share price is holding up remarkably well under the circumstances...

[superg1] 25/3/2015 18:20

SQM

It's starting to mount up

Sociedad Quimica y Minera de Chile (SQM) sack CEO amid allegations of fraudulent tax receipts, saying they identified transactions for USD 11mln that did not comply with Chilean tax code regulations.

Rather than list the reports, he recorded expenses from 2009 to 2014 USD 11 million which they have no documentation for.

[superg1] 25/3/2015 16:58

?

What has the strategy got to do with looking after the share price EPS is all that matters, look after that and the share price will look after itself.

We are within about 2 weeks of an update and many seem to be teddy throwing. Not mentioning anyone in particular but it's all starting to sound like uncovered T-trade tantrums.

Hearing on the 6th we are 13 days into a 17 working day limit on T 20's.

Same old, same old, to me.

[che7win] 25/3/2015 16:55

Roundup,
The management are playing a long game.

Fracking disrupted production in December because oil companies went on a spending rampage and fracking escalated ahead of their year end - extra capital spend in a boom year rather than into 2015 which dampens profits in 2014 but makes a tough 2015 look better with less capital spend.

For us, that means 2015 first quarter iodine production should have a lot less fracking disruption, so as Crosseyed and Superg allude to, I expect plant margins would improve this quarter with better production against fixed costs.

Going forward, they will have sites ready to expand into, but a watch and wait approach sometimes is the best approach.

Plenty of improvements still to come from current plants meantime, for instance io5, but we have to see what they mean by those continuous hints on improvements to existing plants.

I think the figures may well do the talking in the next few weeks, water outcome also to come.

A scarcely believable 35% increase in Chemical division, that is ferocious growth - I would hope growth continues on the Chemical side this year as that is the best avenue for our iodine right now.

[roundup] 25/3/2015 16:48

Does the management not see that their adapted policies are wrecking the share price and thus bleeding the share holders. They need to get some news out to give confidence to the market.

[superg1] 25/3/2015 16:39

Loughton then yiou need to have a serious look.

Check out the various mines and dams that have been blocked by the courts in the past

Currently Antofagasta one of the biggest copper mines is appealing against a decision that could seriously damage their production levels.

RB energy 1200 mt of iodine potentially about to wind up.

Algorta await a supreme court ruling on their water supply.

Cosayach , $70 mill court order, $120 mill court order and $82 mill in tax evasion just identified.

They will have to pay all of that, it's current and relevant, we are just waiting for the outcome.

ACF Minera too could be affected by water rights suspension as they are in the same area as SQM.

That's 55% of world supply with potential issues.

SCM Bullmine should be fine other than they are loss making at this price.

Something has to give somewhere, at some point.

[che7win] 25/3/2015 16:37

Fresh,
Doubtful, we haven't had a broker note in 15 months....

[freshvoicem] 25/3/2015 16:10

It's a pity the person(s) selling today don't get the wider picture. Maybe they are advised by analysts!

[loughton] 25/3/2015 15:53

I'm certainly not getting a negative impression of Chile from all of this. SQM, yes. Everything else no

[danwaits] 25/3/2015 15:33

Jaysus, $10m is serious alright. I was quoting the figures reported thus far re the false invoicing which were about £8,100 at today's exchange rates. The main points in my posts though were regarding the rather false negative impressions people might have of the Chile as it's Government continues to battle with the legacy of previous regimes.

[gadolinium] 25/3/2015 15:29

Super, re:TurkmenistanAzerbaijan

Well figured, your hypothesis seems reasonable.

[superg1] 25/3/2015 15:06

Don't be sorry you made me laugh, still giggling now. I'd worked out your mood, you can call me Sherlock.

Yes $10 mill in what were bribes is a little serious.

[bogg1e] 25/3/2015 14:59

sg, thats a bit more than Dan's £8k in political contributions. Sorry im a bit narky today.

[che7win] 25/3/2015 14:58

Yes,
It looks very scammy to me, interesting to watch it, who is buying???

[superg1] 25/3/2015 14:55

A bit more SQM just out.

Chilean non-metallic miner and fertilizer group SQM allegedly made US$10mn in illegal payments to political campaigns, local radio station Radio Duna reported.

That's how they got their leases and concessions then. I heard somewhere they paid $1 per hectare.

[superg1] 25/3/2015 14:48

Che

Wow I hadn't seen that one. £3m in the bank, an investment company with no current investments and a £55 mill MC. Even the company has warned about it in an rns.

Is that a scam in play or what. Some are going to get very badly burned there I suspect, but when will the ridiculous climb end?

[superg1] 25/3/2015 14:12

Gad

That Turkmenistan import rate was a nice spot.

I've had a look at exchange rates to see if that may explain it.

In Turkmenistan right at the start of the year it was 35 Manat to the Dollar, and it's been a steady 28.6 since. So an 18% difference the wrong way.

It looks like they stopped supplying at the $34/35 per kg mark but when the manat was weaker.

So at $35 they were getting 1225 manat per kg. Now with the exchange rate and $30 price it works out to be 858 manat per kg.

In real terms the price has therefore for them dropped 30%. It's the equivalent of about $24.50 per kg for them.

I note they stopped supplying when at 34/35 per kg when the rate was unchanged.

Good find as that suggests what the cut off price is for Turkmenistan and it seems quite high.

If the exchange rate stays the same they now need $42.83 per kg to get the same return as $35 a few months back.

[superg1] 25/3/2015 13:35

!MM

Well said

After all this particular thread was created to share the relevant information found. There are plenty of others where folks can moan about news flow.

The oil picture change is no small event it is massive worldwide. Some plants went in place when the frack schedule suggested there would be no water available, so planning ahead is very important.

There is no point spending millions taking the cash down to the bare bones just in case SQM decided to screw the market at $20 per kg.

There is no rush IOF can get to whatever production level they see fit, but I would prefer they do that on the back of a solid foundation and reasoning rather than take a risk.

If they happen to get $10m on a successful water permit JV deal then that should be about $20 mill in the bank. From that point I imagine they will step forward with more confidence.

It's not like IOF need 2 years to react to market conditions, they can build plants at the same time.

[superg1] 25/3/2015 13:28

re

Government's reforms are all going to have a negative impact on the Chilean economy and foreign direct investment. Absolute rubbish!

That's the view of the Chile big companies and those willing to invest, so I don't agree that it's rubbish, Chile industries see the reforms as a barrier for investment in Chile.

Rid

They gave you a valid answer and you are ignoring it. I think the frustration here is more about wanting the share price up as fast as possible in the shortest amount of time.

Of course some shares are going to do well as it all depends on the availability of shares, that doesn't necessarily make them a good investment.

Take Cloudbuy, that's an outright manipulated share price, because the CEO made the mistake of taking cash for shares with a finance company who have planned to crash the share price to trigger the margin call, on the shares he pledged. They added a margin call price into the deal then proceeded to short it to trigger the margin call. That's the AIM for you and some dirty tricks finance providers.

[freshvoice] 25/3/2015 13:14

The veil covering the case SQM (the name is not excessive) begins to unfold slowly with the passage of time and the action of the Internal Revenue Service (IRS) that although for many may sound late, da account of the plot that hides alleged tax offenses, bribery, misappropriation and most tasty of all, irregular financing of political campaigns captain page, transversely; something which incidentally has several nerve in Congress.

Yesterday, IBS expanded the complaint for alleged tax for a total of 73 ballots trout in the amount of $ 1.36 billion, an action that includes top executives of mining Julio Ponce Lerou, the political world and others linked to the company.

El Mercurio, in its Wednesday edition contains the list of the 12 accused by the Service, and 13 other taxpayers who are being targeted.

The list of those who are now reported as follows:

As happened with the lawsuit filed Monday, the denunciation of SII points against three executives of mining. It is the CEO Patricio de Solminihac, his predecessor Patricio Contesse G., and vice president of finance, Ricardo Ramos.

In this list of defendants also includes the lawyer, close to Julio Ponce Lerou, and investor in companies waterfall Roberto Guzman Lyon.

According to what is collected from the lawsuit, Guzman asked Osvaldo Lira Opazo, who with his wife, Marisol Gonzalez Toro served as his accountant over 40 years, and the latter, issuing ballots on behalf of SQM, all this weigh both Opazo as Toro did not serve to mining.

"During the 2005 to 2012 marketing years except 2010 and 2011- (...) facilitated ballots 'false' fees for services never rendered, the company Sociedad Quimica y Minera de Chile SA, which were recorded as spending accounts (...), reducing taxable profit declared in its Forms 22 on annual income taxes, finding a lower tax legally mandated, and evading the Single Tax provisions of art. 21 of the Law on Income Tax, "says the SII.

The policy

A former ambassador DC also appears with his family three names in this list of 12 taxpayers habrín provided ballots for SQM cut its tax burden had already come to light in the list of 19 individuals who cast ballots mining in July 2009. All this before the event rearming and the subsequent tension between the SII and the Attorney occurred.

The aforementioned are Rozas Marcelo López, DC activist and former Chilean ambassador to the Czech Republic, his wife, Michelle Reymond Larraín, and their son, Daniel Rozas Reymond.

The other three contained in this list of the "12 scaffold" are Carlos Espinoza Sepulveda, Monica Gajardo Córdova and José Tomás Hormazábal.

Now, there are 13 other taxpayers who are not known, but who is being tracked closely.

Here for example is the undersecretary of the Segegob, Rodolfo Baier, with a ballot for more than $ 6 million for the tax year 2014.

A Baier others appear the following persons:

René Madariaga Caronna: Ex communications advisor Fulvio Rossi, with ballots, 2009 in the amount of $ 17,777,766.

Mariela Molina Aguilera: Ex adviser Rossi, for $ 44 million (in 2009 and 2012).

Maria Valentina Martinez Zaror: Ex sister of a sister of socialist senator, for $ 22 million (in 2009).

Matías Hormazábal Cavieres: Listed $ 4 million in tax year 2010. He participated in the campaign and was Sebastián Piñera Subdere officer in 2011. He is the brother of the defendant José Tomás Hormazábal Cavieres.

Cavieres Marisol Romero: There ballots, 2010, 2011 and 2012, for $ 24 million.

Alex Valenzuela Cañete: Former candidate for councilor in 2008 by San Pedro de La Paz, with tickets for $ 40 million.

Gatica Ninfa Espinoza: Appears with tickets for $ 22 million. As Cañete, figure in 2011 as an official of the Junji in Region VIII.

José Rigoberto López Hormazábal: For $ 20 million.

Luisa Figueroa Rebolledo: For $ 40 million.

Jorge Daza Aránguiz: For $ 40 million.

María Pilar Torres Machuca: For $ 20 million.

Sources Christián Castillo: For 40 million over two years.

While IBS continues filed complaints, allowing the Attorney delve into the accounts of mining to unwrap the apparent illegal, for 16 hours this afternoon hearing was set in the TC after the appeal of inapplicability presented last week Contesse's lawyer, Samuel Donoso, action left in status quo seizure and raid on the company's Julio Ponce.

[1madmarky] 25/3/2015 12:23

The market background info that SG, is providing is very important and will enable you to make a more informed decision.. Added to the fact we have naff all from IOF without the background info there would be nothing but tumble weeds on this board. Personally I'm very interested to see how it all unfolds in Chile. This will potentially have a massive impact on IOF even if our production stay low. If the proverbial does hit the fan down there the price of iodine and derivatives will jump and we will be significantly more profitable. Just MHO.

[che7win] 25/3/2015 12:04

Two things will need to happen for us to rerate:1. Growth plans released for the market to price in this company as a growth investment and not a stalwart.2. Iodine price recovery.If one of the above two events happens, it won't take much to break into the 75p plus level over the next 12-18 months.If both happen, I would expect 125p target would come over the same period.If water comes along in conjunction with a cash injection, the time frame will be accelerated.The fracking boost in December didn't help our production for that month, the opposite should be true this quarter. The business is on a sound footing for growth going forward IMHO.