Iofina Share Discussion Threads

[the librarian] 21/6/2013 15:22

Talking about horses, any attempt by a company now to follow in the footsteps of IOF would be a case of shutting the stable door after the horse has bolted, it has taken a few years to get to this point and maybe the tech could be replicated at some point ... who knows... we also know that patents are on their way.... whatever they may be.

[hew] 21/6/2013 15:16

Croc, thanks, that is something anyway!

[croc8] 21/6/2013 15:14

Hew- the brine leases are actually evergreen. It may be hard to believe but the BOD have confirmed it a number of times.

[the librarian] 21/6/2013 15:06

It was a good write up Roboben and from the horse's mouth so to speak. However, it seems that recently they have tied up the majority of the leases with the high ppm's!

I have had enough of the 'under the radar' stuff too, 'in perpetuity' springs to mind!

[sandbag] 21/6/2013 15:05

L&G now selling some PTO (Publishing Technology). Are they having a cull of AIM shares or what?

[awolagain] 21/6/2013 15:05

Hi all...another sell off today...:-( what is the action on L2...anything sitting there that might give us a hint to which way we might end up today...what are MMs numbers and order book??

Thanks in advance

[hew] 21/6/2013 15:04

Lib, that reminder does draw a brighter picture, thank you. Clearly the duration terms of the leases re iodine rights and brine supply are critical. However that simply means that the Oilie and IOF are in a joint venture. And it is a minor sideline for the Oilie. And they could use a refusal to supply as a hold to get a decent cut. Or perhaps simply being awkward with unfortunate mistakes etc. I'm not considering disaster scenarios, only a leakage of profit. But indeed if the leases are initially of multi-year duration then the radar/takeover issue will be long gone.

[nevmyers] 21/6/2013 15:02

The volume of sells is more than double the buys today, I don't see why its still going down its way oversold now.

[superg1] 21/6/2013 15:01

Engelo

re

'After the meeting I overheard the mysterious Chris (HL??) saying to CF 'why can't you get accurate figures on capex and opex out to the market?'

That goes along with 'we'll surprise them later' chuckle chuckle.

I think the point you raise is a hot topic going on now. The points have been raised and it is about time IOF put the facts out there.

[roboben] 21/6/2013 15:00

Lib - You beat me to it! :)

[the librarian] 21/6/2013 14:54

IOFINA Iodine, gas, water!!, maybe Oil (Bakken) - IOF



Roboben - 10 May 2013 - 13:26:34 - 24665 of 26091



Some comments on the Iodine leases which the company is securing.
This is my understanding. Open to correction on errors!

The initial lease can be for a period of from 3 to 5 years. They vary!

Once a certain amount of Iodine has been produced (that varies, too apparently, according to Jeff, but he was a bit vague here. Fair enough, he can't have all details at his finger-tips!) then the lease is secured for Iofina in perpetuity. Or, I imagine, until Iofina give it up. (Why would they ever want to, unless the supply of Iodine was exhausted?)

The leases are with the landowners, not the oil companies.

Apparently the oil companies have been very helpful on getting details of the landowners to Iofina. After all, the sooner the leases are signed the sooner Iodine production can begin and the sooner the oil company gets it's cut!

The interesting bit is this. Once production has begun the oil company is in no position to say to Iofina " Thanks for what you've done but we don't want you messing with our brines any more. We can get a better deal from TRN". I imagine that the oil company could, indeed, end it's contract with Iofina if it really wanted to but it couldn't offer the contract to anyone else because THE IODINE IN THE BRINE IS IOFINA'S under the terms of the lease drawn up with the landowner!

This is why they've been trying to tie up as many leases as possible on the high ppm brine areas. It's why they want to remain under the radar for another six months or so. By that time they'll have all the best areas tied up, they reckon.

Even if they put their tech into the public domain at that point nobody could threaten their dominance unless areas with higher ppm Iodine rich brines could be found that rivals could sign up. Unless that happened Iofina would still be the world's lowest cost producer of Iodine!

That's really quite a major barrier for potential competitors to get over.

[hew] 21/6/2013 14:52

Croc, Re the oilies contracts, are you assuming they will be perpetual? As a supplier I wouldn't have signed those. Perhaps a year or even two, subject to renewal?

Librarian, yes I followed the discussions on the old thread, but that was before this matter of a hotspot for the high ppm brines came up. If there are plenty of locations and brine suppliers it is a different matter.

[the librarian] 21/6/2013 14:52

iIofina know what they are doing maca, the oilies tell them who the rights owners are, please do a search in the other thread... it's all there!

[maca1212] 21/6/2013 14:51

Librarisn,

The state of Kansas is apparently also happy to share a much more complete analysis of produced water by well, their database of nearly 5000 tested sites is insightful.

Pity that OK are a little more obscure.

M

[maca1212] 21/6/2013 14:48

croc,

I may be splitting hairs but the contracts will need to be with however owns the mineral rights to the brine (or water) at the point in time that IOF process it, in most cases that may be the oilies, but it could equally be the surface rights owner or indeed if the brine has been delivered up into the legal custody of a disposal operator it'll be with the disposal operator.

I believe the mileage also varies depending upon which state you are in.

M

[croc8] 21/6/2013 14:48

Lib, you have a much nicer tone than me. Glad the message was the same.

[beastman] 21/6/2013 14:46

Very helpful Croc, NOT, wanting to buy back in at a good entry point

[engelo] 21/6/2013 14:44

johnc: re Dart, no worries mate. The decision whether to sell Igas and buy IOF is a no brainer: the only small question is when :-)

[croc8] 21/6/2013 14:44

Up or down I imagine Beastman. Surely you must have worked that out?

[beastman] 21/6/2013 14:42

If 190 fails where next for sp

[the librarian] 21/6/2013 14:41

Good points maca and hew, I would suggest that you look in the search box on the old thread where it was frequently discussed, IOF have plenty of options on the brines. They are and have been testing wells as the brines come out, they even have someone employed doing that I believe, and from that info go in and tie up the leases with the landowners... the oilies are happy to divulge the information to Iofina.