Iofina Share Discussion Threads

[activmojo] 16/6/2023 08:42

The dividend is a consideration to attract large investors. It ticks another box for that type of investor.

[chillpill] 16/6/2023 07:57

Thanks Naph.

One cent divi would only be $1.92m. They will be generating that sort of sum every 6 weeks or so at current prices.

A lot will depend on the plant negotiations in the next few months.

If O&G prices continue to fall it probably helps IOF in discussions.

Obviously we would all prefer a faster build rate than dividends.

Was there are discussion on stand alone iodine extraction sites that they mentioned in results? TIA

[naphar] 15/6/2023 22:36

By tiny Chill, I meant tiny, 1c a share far exceeds what I meant and to declare an interim means (usually) declaring a final on top, just can’t see that happen.

Although I’d love to see a 1c interim and a 1.5c final, I just can’t see it happening yet…

[chillpill] 15/6/2023 20:39

At current prices they will be generating around $1.5m of EBITDA per month.

Interesting they mentioned the possibility of a dividend. Might they declare an interim dividend of 1c in September? Although if they did they probably need court approval because of the b/s.

[joestalin] 15/6/2023 19:53

So how come the share price is down on the day?

[riddlerone] 15/6/2023 18:16

Agreed Naphar,can't wait to see the up to date balance sheet.

[naphar] 15/6/2023 18:14

Which would probably have been after most of the IO9 Capex, in which case, that’s great news!! And a point I had forgotten

[riddlerone] 15/6/2023 18:01

ML said on the Investors meeting 11 May 22m.30s in that we are now cash positive

[tackems] 15/6/2023 18:00

Many thanks.

[tackems] 15/6/2023 17:59

Many thanks!

[starastar] 15/6/2023 17:57

They showed a slide deck which had - from memory - net debt of £0.7m. Assuming they have held to best practice vis-a-vis information disclosure, this will match what was released as of 4 May 2023 in the investor presentation (feel free to check, I haven't got it to hand). They did a few days of roadshow then, but not this week - "straight back to crack on with running the business", was the implication.

[naphar] 15/6/2023 17:45

Tackems,
They are not “debt free”, they still have $5.x m of debt on the balance sheet, however their net debt may now be zero, taking cash balances into account. But that debt hasn’t yet matured and so doesn’t need to be paid back.

Is net debt zero already, or are they showing net cash? Not sure as wasn’t clarified specifically to my recollection, but it was said treat the new plant was funded without using debt, for what it’s worth

Funding wise, I don’t think things have ever been stronger

[rheumking1] 15/6/2023 16:40

Tackems
they didnt really mention the debt as it has shrunk to such a small amount/Disappeared that they didnt dwell on it and we didnt ask about it. They did say repeatedly that their cash position now was strong and this enabled them to consider developing new options in terms of products and possible acquisitions which would also have the benefit of increasing market cap- nothing definite but they are fishing around

[barrywhit] 15/6/2023 16:35

Looks like our little group of traders have sold out today....

[hopefullamateur1] 15/6/2023 16:03

The 2022 FULL YEAR RESULTS RNS has

Strong balance sheet and further reduction in net debt:

· Cash of $5.9m at year-end

· Net debt reduced from $3.0m to $0.9m

[tackems] 15/6/2023 15:55

Hi Russ, and all at the AGM, thanks for all your feedback. When you say reduction of debt, as I understand it from the FD in one of the interviews/podcasts that debt has now been eliminated. Is this the case and IOF are now debt free?

[beercapafn] 15/6/2023 14:59

So, some are voting with their feet today. Can't see much more advance in the

$70 KG price and the BOD basically saying we are having to be more creative to find

growth.

Resolution 6 not passed indicated that some need to see any big projects, past experience in management

performance and choice of projects put doubt in the way the BOD has acted in the past.

Just saying. ?

[naphar] 15/6/2023 14:01

Bribes = brines, autocorrect, now fixed

[serratia] 15/6/2023 13:34

Thanks I'd missed that. bribes ?

[naphar] 15/6/2023 13:30

Serratia
Don’t forget, we have two royalty payments, in to the operator and one to the mineral owner (the land owner the brines were extracted from)

I suspect this covers all of it

[serratia] 15/6/2023 12:56

A broker report gives the royalty payment for 2022 of $4.6m from the 5 plants. I seem to remember it's linked to the iodine price. As different plants have different outputs each royalty I assume will be different. The above averages $0.92m/plant but the higher output plants will be higher.
This year the forecast is $5.3m. 5.5 plants gives $0.96m based on a $60 iodine price. It looks to be around $1m royalty for a 100 - 150 tpa plant.

Update May iodine price $70 no change.

[naphar] 15/6/2023 12:33

Fft

Whose answer to what question was conspicuous by its absence?

[naphar] 15/6/2023 12:32

I see Activmojo was at the AGM 😀

Res 6 has been there in prior years, it’s not just there because they are now looking at opportunities.

By the way, I don’t see such opportunities as necessarily coming to fruition soon, these things can take a very long time. And running the slide rule over things does not mean they will decide buying is a good option. But what intake from that whole discussion is, they didn’t do any acquisitions since IO2, but they are now actively trying to grow through acquisition, if and when the right opportunity arises.

[activmojo] 15/6/2023 11:49

It's a balancing act for Iofina, this isn't large income for the brine producer and the contract price could be on a sliding scale linked to iodine price. Push to hard on finalising the contact risks being told to go away or just a flat no. Its a lot easier wheen the oil price is low but while it's high their focus is producing oil after all signing the contract is probably worth $250k pa. The expanded geological team will be considering drilling a brine well and re purposive a disposal well. They are expanding the management team in 3 areas. 1. Geological 2, Sales, 3, Business development.
So don't be surprised if an chemical product or chemical company acquisition is under the magnifying glass now. That I belive was the purpose of resolution 6.