Iofina Share Discussion Threads

[rhwillcoll] 09/7/2015 08:15

Monty Panesar: here is the website to the Indian import data:

[superg1] 09/7/2015 07:48

Bogg1e

SQM have Cosayach opex as $33 per kg. As mentioned before at the time of the state street bank award (against Hipermarc) $42 million left the accounts, $20 million or so went to the Cosayach mine. It's being investigated but was only spotted a month or 2 ago.

Hipermarc is one of the Errazuriz (Cosayach boss) group of companies, but retail shops ??.

SQM want Cosayach, what value do Cosayach have as a loss making company with such debts.

However that was the strategy before the manure hit the fan for SQM in a spectacular fashion, with more to come. So can they continue down this path of losing $8 mill profit per $1 of iodine.

BTW CORFO present their evidence today so there should be news later on in the media

[roundup] 09/7/2015 07:47

Even if the price of iodine went up today, we are not in a position to take advantage since we have decided not to invest in expansion. I know in these times we need to be cautious, but, in my opinion, we should be now in the process of setting up no. one plant in a choice position so that when the price of iodine does increase we can immediately take advantage.

[monty panesar] 09/7/2015 07:36

I have lost the website to the Indian import data. Is there any evidence on there that the amout imported has increased? It's just that SQM have been talking about increased sales to Asia. Whether that includes India or not I don't know.

[bogg1e] 08/7/2015 23:32

Also, in regard to the JR. Do we know whether the DNRC have a time limit on setting a review date?

[bogg1e] 08/7/2015 23:29

As iofina mentioned that they would apply for the JR, it makes no sense for them to announce that they have actually done it. I assume they have because by law they had until the 4th july to apply for a JR, if not they forfeit the right to contest the verdict. Unfortunately this probably means a longer, drawn out legal process.

Hopefully, if SQM do lose these mining concessions (representing about 50% of their revenue), then they may choose to raise the price of iodine in order to maximise profits on their remaining revenue streams. After all, I never understood why they had to drop the price so low, they would have achieved the same end if they had dropped it to $35, cos that would have prevented RB Energy or Cosayach making any meaningful profit on their iodine anyway. Certainly not enough to cover their debts. So there seems little sense in SQM not maximising the profit on their iodine assets, if that represents what little revenue channels available to them.

[freshvoice] 08/7/2015 22:50

Oh and they can't blame that on George, like forgetting to apply for permits from DEA

[freshvoice] 08/7/2015 22:48

I hope they remembered having forgotten to file at companies house!

[superg1] 08/7/2015 21:19

I anticipate that it would be filed regardless of what the bureau say as you can't rely on anything not legally set in stone. They can withdraw a JR at any time but
can't apply for a JR after 30 days.

[naphar] 08/7/2015 20:53

I look forward to seeing it in writing, I am quite sure it will have been submitted within the timeframe required.

[kattatogaru] 08/7/2015 18:49

I am assuming nothing until I see it in writing...

[monty panesar] 08/7/2015 17:14

From the last statement on water you have to assume they filed for the JR.

[kattatogaru] 08/7/2015 15:52

What is the deadline for water judicial review announcement? I thought it was a 30 day window, this has come and gone since 5th June RNS.

[uppompeii] 08/7/2015 15:39

For many jbe81 I would think it's a case of 25x bitten, 25x shy....

[jbe81] 08/7/2015 14:44

Surprised there is not more buying before what should be a very positive update

[superg1] 08/7/2015 13:35

The details

In the first week of November the tax authority filed the lawsuit against the legal representatives of Atacama Chemical, CIDEF Comercial, Inmobiliaria y Constructora Nacional, Frater and Holding, Holding and Trading and Company Sociedad Contractual Minera Cala Cala nitrate and iodine.

Francisco Javier Errazuriz Ovalle,
Antonio Sepulveda Eduardo Viada,
Eliecer Fuentes,
Carlos Contreras,
Emilio Sarantini,
Guillermo Rodriguez,
Gonzalo Landaeta
Hernán Mora.
Carlos Contreras Quispe (the 61 days water theft guy)

There are others.

Through false companies and invoices they were showing iodine sold at $20 per kg, when the true sale price was $52 per kg.

They saved $82 mill in tax that way.

All these things are stacking up but they take time to affect the sector.

That's why I'm not worried about the share price long term, the iodine world facts suggest chaos is going to hit the iodine market at some point, and there is no quick fix. A false current market heading for a very nasty wake up call for end users.

[superg1] 08/7/2015 13:23

Monty

61 days for water theft.

Ponce Lerou remained free for his insider dealing amounting to millions, but got a hefty fine. That said he became a billionaire through theft and fraud.

The Cosayach guy that got 61 days and about 10 others bosses are in trouble re the US $82 million tax fraud. Those details should break into the news in the coming months

[rovi69] 08/7/2015 13:07

sad when you look at the two year chart!

[freshvoice] 08/7/2015 11:56

Men
Let's hope that the low for this year.
Wouldn't want to get to the20 that ACT predicted would we?

[monty panesar] 08/7/2015 10:55

Didn't one of the Cosayach Directors do time last year for something?

[meb123] 08/7/2015 10:28

I thought I will say something on IOF, looks like its touched its lowest level in a year at 20.31p. Sigh....

[phoenixs] 08/7/2015 10:26

At this rate SQM will not survive in its present state, Directors and ex Directors will be in jail and the price of iodine will be based on market forces and not corrupt practices.

[superg1] 08/7/2015 10:15

Not forgetting the SQM news re CORFO pre the recent revelations.

SQM explanation.

CORFO dispute about our 'methodology' in the calculation of royalties.

It's just a technical breach.... we are confident. (A technical breach means CORFO can't rescind the leases).

CORFO said the evidence they have is a material breach (can rescind the leases). When some detail came out others called it 'grave'

SQM released news at the end of June trying to suggest all was well.

Tomorrow it seems CORFO are planning to empty the manure heap onto them.

[monty panesar] 08/7/2015 10:13

There isn't too much to say about IOF right now as production is stable, cost of production has been falling and we are waiting for the iodine price to move up. It goes without saying the iodine price is influenced more than anything by the top 2 Chilean producer's both of which have serious issues hanging over them. This is in addition to the supply/demand side that SQM recently talked about.
The political process will take its course but could lead to a price spike rather than a steady recovery.