Iofina Share Discussion Threads

[superg1] 23/6/2015 15:01

Thanks Tackems.

re

'They are alone in the field and not now concerned with others encroaching.'

It sounds like they have tied up practically all the best areas where they have taken samples.

To jog the grey matter, when you hit 55% plus in brine leases for any particular well/area, you then have access to 100% by means of a legal action. Such brine leases don't have expiry dates and give IOF ownership of the iodine in them. I know IOF were being quite sneaky re some areas.

The land owners get about a 3% royalty, one mentioned that figure on a chat site about her leases with IOF. That seems to be the going rate for land owners and commented on as such.

[roboben] 23/6/2015 14:56

I may be confusing myself over wording here, but I wonder if anyone could clarify the following for me.

I get that there will be no new plants this year, but what does that mean for IO1?

Do the components get mothballed until next year or do they plan to re-site and re-open it this year without it counting as a new plant?

With apologies if this has actually been made clear earlier and I've just missed or forgotten it.

[spike_1] 23/6/2015 14:52

Thanks tackems - some useful additions there and lots of confirmation of others report content.

Many thanks - Mike

[tackems] 23/6/2015 14:45

I have had a bit more time to decipher my AGM notes - who said retirement would be a relaxing time - I am busier now than before! Anyway here goes and once again I may have duplicated previous contributors- sorry!

• Prefer to lock in 'long term relationship' than lock in fixed price in any dealings.
• We would export Iodine outside USA because there are certain producers who may even sell iodine but we could sell iodine products to them.
• IOF sell iodine worldwide. Some want crystallised, some want flake and some want fully prilled. IOF report elemental iodine in all the different forms
• Over second quarter they have overproduced so the inventory levels have gone up more than they anticipated. They have increased the number of buyers both derivatives and elemental. one is an Asian buyer goes to multiple users hence using this as a distributer. some customers are referred to this buyer others are historical Asian buyers.
• This helps in checking out Chinese customers to ensure IOF are paid. They also store and sell on.
• Q:What is the royalty paid to O&G companies: $2 is a little low as there are also other royalty payments and they are not prepared to disclose full amount. They have moved from fixed royalties to more incentivised royalties like more brine = more money.
• Q: at maximum capacity in Chemical branch? A: is not a 24/7 operation we have space and shift capabilities for future.
• We have target areas for other projects. There is a robust development pipeline. They are alone in the field and not now concerned with others encroaching.
• Earthquakes monitored particularly SWD but there is no correlation. Earthquakes in non SWD sites as well as SWD sites but there may be a possibility. 30,000 barrels is the fracture gradient for most of the rocks in OK. Some do 200k some 400k per day. There was an earthquake near a high volume site near IO1.
• Labour and chemicals are the number 1 costs.
• Guys making $90,000 and a free truck with oil companies but since oil price drop this is not the case. Not such a challenging situation.
• IOF have learnt to leverage the buying power of the chemicals they use but this is not the case in Texas hence part of the reason for move of IO1
• SQM will not go out of business but more Chilean assets being re-appropriated but Lance sees RB Energy going out of business. They see IOF as the only growing business.
• No exceptional hits coming this year. Q12014 last year Iodine costs were higher. Q22014 some inventory written down also switched accounting systems to Microsoft FS so there was a difference between H1 &H2. Results will be sooner in the future.
• The loans are used eg last year nearly ran out of money between sales and receivables. Loan is used as a resource.
• Expect quarterly updates. Figures are put out when they feel they have got it right. They need more resources in finance.
• They still have good relations with II's who made a lot of money out of IOF. Expect II's to come back and add others.
• They have goals to achieve the low hanging fruit one of which is improved efficiency eg they expect another half a plant to come out of what they are doing near term and even then tweek things to get higher.
• No new iodine plants on line this year but disassembly of IO1 is taking place now. Tweeking of plants will be done over the next 4 months. Looking for confirmation that the iodine price has bottomed.
• They have 3 hotspot sites for IO1. and others. Volume of brine water and concentration and more importantly the consistency is constantly monitored. Next generation will be fibreglass plants with less automation.

[superg1] 23/6/2015 13:23

The digging around can be very timing consuming and boring, but occasionally there is the odd line or paragraph that catches my attention.

In this case I was chuckling away, and will for a while.




Note paragraph 4

I understand it was nothing to do with the Jeff Ploen rns.

[superg1] 23/6/2015 13:19

Mid states are in a premium area. OK works on a whole network of pipes, so wherever they drill they link it into the network.

Btw

Midstates completed 27 fracs in Q1 in Woods and Alfalfa counties, woods is where IOF are.

Just 1500 more to go on various levels all of which historically have well rich in iodine.

[spideyyy] 23/6/2015 11:01

Hi Sg1
Thanks for your reply
Would all the Midstates SWDs be located near the "sweetspots" high ppm for IOF
or would they have to lay new pipework etc

[superg1] 23/6/2015 10:25

Spidey

fyi

Midstates has talked about selling off their SWDs, hence my interest.

Owning an SWD removes the royalty payment to the oil company. The oil company then pays for the water disposal to the SWD owner.

Just a thought process of IOF taking ownership of an SWD for free, and not charging for water disposal, or paying for one and charging for water disposal.

I doubt buying one is not on the cards right now, unless the figures add up without too much outlay.

[spideyyy] 23/6/2015 09:53

hi everyone
that was me who asked about the SWD...it was right at the end after Tom had left
I should have pushed it further but the AGM was drawing to a close.I got the impression it is another of their possibilities

[gadolinium] 23/6/2015 09:27

A belated thank you to those who reported back from the agm. I have been away for a week and only intermittently able to look in. It does take quite some time to catch up on the backlog of post. But now I must get on with my own work backlog!

[naphar] 23/6/2015 08:36

Sg
Re the free SWD
Someone asked if they were any further down the line of buying one.
Lance, somewhat tongue in cheek in my view, said they prefer to get things for free. Nothing more was said that I recall.

[spike_1] 23/6/2015 08:34

free SWD: there was a question asking if IOF had considered buying their own SWD, to which the reply was - more or less - yes they had , but not if they can get someone to give them one. It was said in a way that just about suggested it might be a genuine possibility. The point wasn't developed any further.

Best wishes - Mike

[roundup] 23/6/2015 08:09

Well let's face it, there are many things we can try to blame management for, this is not one of them. They promptly informed the market of the transaction so stop blaming the company for the action of someone who is not part of the management.

[superg1] 23/6/2015 07:51

Btw

Jeff will have known about the 2 very interested parties re water and other aspects not declared in news, he will have been inside.

Post presentations and the AGM all the info was technically out there.

CK

Any more re that free SWD, what was said?

[superg1] 23/6/2015 07:23

Back to logic

Would all you guys like to announce publicly where all your assets are or have been placed.

Of course everyone gives the tax office a call if they gift their kids over the £3000 per year limit.

I bet the tax office is snowed under with such declarations.

He is obliged to report the sale (1% trigger), but is not obliged to state it's to fund a bulk discount on incontinence pants.

[cyberbub] 23/6/2015 07:23

I suggest we all stop panicking here. JP (who is not a director and therefore theoretically has no inside information) has sold a modest part of his holding, for £150K. So what. Maybe he is buying a flat for his child. Maybe he is doing some tax planning. Who knows. As far as I recall he is getting on in age, would any of us do any differently? Everyone has to sell some of their shares sometime. Jeez. The shares appear to have been absorbed and are now 'in the price'. Can we all just focus on the company's progress?

[nicksig] 23/6/2015 07:18

So he has transferred some of his holding into a family trust. No news. Let's move on

[bocker01] 23/6/2015 07:14

To be fair news of this before production news or the agm would not have been good. Glass half full or half empty? However now there is a choice, believe what the man says over a tiny percentage of his holding or not. It is not really comparable to Lance's transfer. If he sells more, then more explanation would be reasonable but he has no obligation to comment further though to protect the value of his remaining holding it would seems sensible to provide such explanation if and when. See post 34076 first line.

[superg1] 23/6/2015 07:05

I assume the wait until the AGM was to avoid causing incidents Bogg1e suggests.

Goodness knows what the posts would have been like if it was pre production news, presentations, and the AGM.

[superg1] 23/6/2015 07:03

Jeez and some go on about a certain gender moaning.

Good posts Bogg1e, had me chuckling.

Did you guys not notice that the volumes did not appear through the market and there was no share price effect. That suggested he whole lump going to one place behind the scenes.

The company gave an answer to those that asked and it matches.

Folks still moaning about who ate all the chocolate, even when the answer is it's not been eaten, it's just in another cupboard.

A quick look at US tax laws would probably show some advantages, and limits on such moves.

[monty panesar] 23/6/2015 01:22

I see JP left his telephone number at the bottom of RNS so that people can call and ask if they want clarification. If transferring to a trust/IHT planning etc etc it is often best to do it at the lowest price possible.

[freshvoicem] 22/6/2015 23:29

If we didn't have all these plants( I'm sure they exist, even if most are in the wrong place), this could look more like an old Cambridge company that had groundbreaking patented technology a few years back.