Iofina Share Discussion Threads

[hew] 19/6/2015 13:40

I wonder if the "automation that didn't work" was explored in depth? In my experience, commissioning process automation that does eventually work can be a major task. While that is on going it is highly disruptive of the efficient operation of whatever - presumably manual - systems that preceded it. If there was a fundamental problem, presumably several attempts were made to rectify it. Was an external contractor used? Did contractual arrangements provide for unplanned disruption due to issues. What aspects of specification was IOF responsible for? Are all the variables that caused problems available to be measured?

These are NOT historical issues! They relate to matters like the fundamental controllability of the plants in relation to brine and whatever other variables - and, of course, to OPEX, even viability. Presumably there were grounds for thinking it could be done. What understanding is there of the reasons for failure? Might it still be possible? Partially to reduce staffing? Aspects for remote operation? A truly "uncontrollable" process raises serious questions.

I suggest a detailed understanding of that whole affair and the consequent future prospects for OPEX is vital to assess whether IOF can be more than a mundane operation.

EDIT: While I was writing, I see others have raised the issue too. Wishing I'd gone to the AGM now.

[che7win] 19/6/2015 13:36

Yes, but the extra plants are all operating H2? Comparing io1 to io3 costs that used manual labour to three more plants needing manual labour doesn't account for the increase in costs, it should have been linear.

[freshvoicem] 19/6/2015 13:35

Costs go up but volume goes up too.
Explains increased costs in second half of the year and also increased output now.

[freshvoicem] 19/6/2015 13:33

Che
I thought they meant they had to recruit extra staff for existing plants as automation was switched off. Hence cost went up, but so has output, after the Gs left?

[cyberbub] 19/6/2015 13:24

Surely the point of replacing the unsuccessful automation with staff is that the company must feel that this will *decrease* opex/kg overall?? Otherwise they would have stuck with the automation, no matter how cr*p it was??

[che7win] 19/6/2015 13:13

Fresh, No that doesn't makes sense.H2 costs should only rise proportionally to plants rolling out, so the increase H2 is not entirely attributable to staff IMHO.There is another reason.

[bogg1e] 19/6/2015 13:12

Thanks Ansana, very much appreciated.

[freshvoicem] 19/6/2015 13:06

Ok so G&G wasted money on automation, and chemicals. Increased staffing costs of replacing the automation must be ongoing raising cost/kg. at least this explains increased cost in second half of the year.
The fact it took so long to find out suggests their financial reporting needs an overhaul, what is the FD doing?

[mikkydhu] 19/6/2015 12:48

Ansana, che and others, thank you very much indeed for the feedback and links.

[che7win] 19/6/2015 12:14

What have we been saying:@finnCap: Iofina – To benefit from compounding effects of recovering iodine price & improving operational metrics. Disclaimer:

[che7win] 19/6/2015 11:58

So, It looks like a normalised view of iodine is $40 right now based on the chart in the presentation.

[mr paul b] 19/6/2015 11:43

Thanks for the feed back Ansana,

[awolagain] 19/6/2015 11:32

Many thanks to you 'Girl' #brilliantgirlyouareto

[che7win] 19/6/2015 11:31

The link above is the AGM presentation...

[ansana] 19/6/2015 11:28

I expect and hope we will get a full report later. Anyway my thanks to the texter (beefy)

[ansana] 19/6/2015 11:26

Meeting over

[ansana] 19/6/2015 11:21

Still planning water permit in ND but all permits there on hold currentlyCan you hear me groaning!

[che7win] 19/6/2015 11:21

Ansana, You beat me to it, just tweeted this:@BrokerForecasts: finnCap has initiated coverage of Iofina with a Corporate rating, price target 45.00p

[phoenixs] 19/6/2015 11:20

Many thanks Ansana.

[ansana] 19/6/2015 11:19

Old news?"Iofina plc given a 73.5% Potential Upside Implied by finnCap BY AMILIA STONE BROKER RATINGSIofina plc with EPIC LON:IOF had its stock rating noted as 'Initiates/Starts' with the recommendation being set at 'CORPORATE' today by analysts at finnCap. Iofina plc are listed in the Oil & Gas sector within AIM. finnCap have set their target price at 45 GBX on its stock. This would imply the analyst believes there is a potential upside of 73.5% from the opening price of 25.94 GBX. Iofina plc LON:IOF has a 50 day moving average of 32.96 GBX and a 200 day moving average of 37.82 GBX. The 52 week high share price is 65.75 GBX while the year low stock price is currently 21 GBX."

[joeblogg2] 19/6/2015 11:16

Thks Ansana, greatly appreciated!!

[ansana] 19/6/2015 11:14

I.e downtime used to be 3 weeks every 9 months, now it's 4 daysSorry this is fragmented it's as it's coming in thru texts and emails. At least it takes us through coffee time. Ansana = girl

[ansana] 19/6/2015 11:12

Not slow, they must get everything running right to produce consistent supply that is most important