Iofina Share Discussion Threads

[che7win] 05/6/2015 13:31

Serious question, Could we get the old codger on the board, it might help?

[roundup] 05/6/2015 13:26

So much for our water expert we have taken on board, I hope he is being paid by results. I think we would have been better to have employed "the old codger". Come to think of it some of our recent appointees leave a lot to be desired. I think there should be at least one head to roll.

[bobbyshilling] 05/6/2015 13:24

I expect the Iofina BOD are furious at this decision, not least because they will need to modify their forward planning. Maybe they will hold off an rns in that connection for even longer, until this water permit situation is resolved.

[monkeymagic3] 05/6/2015 13:11

Don't forget the EBITDA Fest!

From Investopedia:

"A common misconception is that EBITDA represents cash earnings. EBITDA is a good metric to evaluate profitability, but not cash flow. EBITDA also leaves out the cash required to fund working capital and the replacement of old equipment, which can be significant. Consequently, EBITDA is often used as an accounting gimmick to dress up a company's earnings. When using this metric, it's key that investors also focus on other performance measures to make sure the company is not trying to hide something with EBITDA."

[rhwillcoll] 05/6/2015 12:43

SG - many thanks for your comprehensive post above: much appreciated.

[superg1] 05/6/2015 12:18

rh

I leave that alone as it confuses many.

IOF have a contract with Hal to supply water that is listed in news of the past.

There are 3 aspects to IOF water supply.

Direct supply buy discharging treated produced water into the Missouri via the already in existence discharge permit. Currently 30k bpd as that matches a plant limit, the amount can be increased (the Fresno reservoir discharge point has a 500k bpd capacity I'm told). From IOF details that water can be extracted in Montana or ND and IOF own it. There is no water right in play, they have storage rights on whatever they put in there. I believe it extends down to lake Sakakawea re storage rights which is the far side of the Bakken.

Comments about that are in the year end news.

Part 2

As the discharge water would pass through the Bowdoin wildlife reserve the US fisheries did a rights swap deal as they have had massive problems when drought has hit the area in the past. IOF's discharge point is upstream of the reserve. The Bakken is downstream. The US fisheries have about 100k acre feet of rights in Montana and ND.

Part 3

Apply for a permit just like others do which is the process that has been applied.


Hence I've always wanted them to keep the Atlantis source to keep the discharge permit and US rights swap. In theory IOF could discharge produced water and sell it to a depot in North Dakota who extract the same amount above any permit limit they have.

They don't have to discharge water to achieve the rights swap, the US fisheries are not interested in any extraction (rights swap) below the Bowdoin reserve.

So the Atlantis set up would be, lift the brine, sell the gas, remove the iodine, treat the water and pump it into the Missouri, whatever they pump into the Missouri they own for their own use.

The gas price drop and finding high ppms in Oklahoma out that idea on hold. The pumping station and pipelines(gas and water) re that, are already in place.

So that's why Atlantis and the discharge permit are so important. It's virtually unique. If the Bakken hits water supply issues, there is a source upstream that in theory can supply most of the Bakken subject to how much water they can pump.

34 wells are capped off currently that can be opened. On the last check they cost about $50k each to drill.

The recent year end news that describes that part of it.

Furthermore, the Atlantis Field provides an unique linkage to our Fresh Water Depot (discussed below) in that the full development of Atlantis Field would include a water treatment facility that would process the produced brine water from the field and, under our existing permit, discharge the clean water into the Fresno Reservoir located on the Milk River, which then flows into the Missouri River that is the water source for the fresh water depot. While not required under current regulations, this does provide a mitigation plan that few commercial water depots have. IR would be taking the waste from its gas wells and processing it into fresh water to be added to the Missouri River watershed. This "sustainability" component to both the gas field and fresh water depot has value to potential JV partners and differentiates the Company from other competitors.

[che7win] 05/6/2015 12:17

But what a great time to buy :-)

[che7win] 05/6/2015 12:15

Yes joe, Rejoining the 90% club, everything that could go wrong has went wrong.

[joeblogg2] 05/6/2015 12:10

The nightmare of being a IOF shareholder continues :((

[arlington chetwynd talbot] 05/6/2015 11:48

Well Festar, some think Banksy's dosh influenced the brutal post-election cull of NF's enemies. As for 1 MP who's really a Tory? That was poor, but nigh on 4m votes tells a slightly different story.

More often than not we get it wrong by ignoring obvious warnings and build towers of reason upon our dreams...

[bogg1e] 05/6/2015 11:46

Disappointing outcome. Im glad they will challenge the decision, but what counts is that, given the length of time the Montana water authorities take at each stage of the process, this has put the permit back 6 months minimum, probably a year. So in the mean time where are we heading? Yes we are EBITDA positive and will remain so if production stays steady( 40+ per month), costs remain at $20 per kilo and iodine prices remain at $30 for the remainder of the year. Now ive done some maths and calculated approximately $7 mil profit for the year after running costs. The problem is though that financial and admin costs have equalled approx. $7 mil for 2013 and 2014, so if things stay exactly as they are, we shall exit the year at break even. So Iofinas success really is down to the initial reasons for buying Iofina in the first place; we need production growth and a rising iodine price over time and the model will work. Growth is down to Lance so maybe we shall get a better idea at the AGM, the iodine price however is down to the Chileans and how much longer can this saga continue? If Cosayach and RB Energy have closed their mines, then there's only work in progress left. Daily global consumption is about 85 tonnes, so it must come to an end soon.

[festario] 05/6/2015 11:30

Yep, Mr Big is millions down on this now, (unless he has been dumping at a loss)
His £1m foray into UKIP was another bad investment wasn't it?
However, I'm sure he'll have some kind of strategy to recoup his loans to IOF.

[bobsworth] 05/6/2015 11:23

I wonder what the timescales are now to resolve this water rights application.

[rhwillcoll] 05/6/2015 11:21

SG - re your post 33221:

"Before someone says it IOF have a contract with Halliburton, but that contract can be served through the water discharge permit so it's legal".

Are you able to further elucidate? Do you think that this will come to pass on its own and be a stand-alone money-earner for the company, or is it tied up with the (currently disallowed) water permit?

[beeezzz] 05/6/2015 11:14

Well well...that's a turn up for the book...what a complete let down, wondered why we had very little volume yesterday.

Fresh....Yep that's the yanks all over, all for one and one for all, there are the most arrogant self serving gits, most protectionist Country around.

I just wonder our much the recent oil spill in US are going to have to pay, worst ever according to Bloomberg!!!!!!!

Back to the drawing board.

[investmentguru] 05/6/2015 11:14

Does Mr Big still hold here? He must be sitting on a massive loss if he is.

[odvod] 05/6/2015 10:53

Fresh - YES. Or Nevada gambling. Or buying the docks, or defense contractors or pharma or (water ??) .....
Napoleon YES YES

[napoleon 14th] 05/6/2015 10:52

Mobiles?
Where are they?
What is IOF's future strategy?

Whatever nonsense goes on about water, this is the fundamental aspect that needs answering, & as I said before the Fundamentals are what matters to have a rising share price

No matter how many thousands of posts ( over 33,000! ), iodine production & decent ebitda are what counts & it's time for IOF to get that moving, water or no water permit.

P.S. It is sometimes more useful to know the judge than the law, particularly in backward (rural?) societies.

[freshvoicem] 05/6/2015 10:51

Surely this is just US keeping out those 'damn Limeys'.
Bend the law how you can. Look at the compensation rackets over BP spill.

[odvod] 05/6/2015 10:44

What about the LOI of increasing the water take off? From 1l at the moment? Legal standpoint changes?