Iofina Share Discussion Threads

[41glop] 29/12/2023 08:39

I watch with much interest the comments of some, but it seems to me that many are missing the point; The key factors for me are:
1, Will the Iodine price hold up at current levels-probably the most important issue- I gather its eased a bit but am unable to verify
2. Are delays to new plants centered around brine suppliers wanting more for their product and being less flexible.
3. Are construction and running costs spiralling so eroding current and future profitability
5. Are some of the older plants needing major overhauls to maintain output
6. The board have seen dramatic conditions over the years involving falling iodine price, with
oil prices collapsing and rising borrowings. At c$15 we faced potential bankruptcy and a price of around 5p!

7. The seed issue should never have happened and may still come back to haunt the Chairman
Given this history why would they consider dividends and share buybacks at this stage?
While the delays are frustrating the longer-term growth is of primary consideration
I believe that the chemical side value exceeds the total group value and there is scope here to create growth with say a JV.
All told the shares do look cheap and any positive news will have a strong impact on the price.
41glop

[chillpill] 23/12/2023 19:29

Yes Naph. From memory they sold 2m of prilled product in the first half so I think that agreement must still be in place.

[naphar] 23/12/2023 10:36

Yes it’s not cheap to build their own. But they did have access to one some years ago so could always contract out the prilling until they have enough production to warrant their own prilling plant

[chillpill] 22/12/2023 20:01

On a prilling facility I asked a while ago and the feedback was that it isn’t something they would probably think about until they are over 1000t pa. I think cost is around $5m.

[naphar] 22/12/2023 16:25

Last time I discussed prilling at an AGM, it was said the cost of prilling is more than the amount they can add to the price. So the longer they can avoid it the better but I imagine there will come a time they don’t have enough demand internal or external, for their form and need to bite the bullet

[pinkpudycat] 22/12/2023 14:54

Iofina will never reach its potential with no passion or drive from the current rudderless BOD, the chairman has 0 interest and the CEO is past his sell by date!

Merry Christmas 🎄 to all shareholders.

[activmojo] 22/12/2023 13:51

I think it has been discussed before, but its always good to re visit things to test.
Prilled iodine is an added value operation which requires capital investment. That would entail a pay back calculation and then you're stuck in competition with other suppliers. It's better to buy in the service.
Today the success can be attributed to external factors of demand and price.
The opportunity at this point would be iodine production from owned wells and the would give control and expansion possibilities.
Right now we are vulnerable to fracking activities and a NEC with other priorities.
BTW, I'm not so fragile to listen to alternative views ☺

[lostsole] 22/12/2023 13:04

With all the talk about increasing IOF income and free cash and best potential use to give growing benefit to shareholdersIgnoring the dividend, derivatives and acquisition elements for a minute and focusing on purely the Iodine extraction aspect:Might there be a potential to develop prilling capability within IOF to further increase sales profitability seeing as though rollout of core IO sites is frustratingly slow and subject to third party contractual processes?Forgive me if this has already been discussed and discounted

[bocker01] 22/12/2023 10:39

5% of global production with global demand increasing 3% annually

[chillpill] 22/12/2023 07:25

A little more digging on the Cosayach Negreiros mine.

At best production will start to tail off next year. I think it currently produces around 2000t a year so over 5% of world production.

The article below confirms they will have to start laying people off in the coming months.

This is the 3rd time in 3 years the application has been rejected. They can appeal and resubmit but you would think it will take at least another 6 months to reverse any decision.

You would think in current situation Cosayach will hold back some iodine sales to create a buffer in case they lose 1/3rd of their production next year.

Spot iodine price fell around 9% from its peak but has rallied 2% in last few days.

I think this is very significant news and could well keep the Iodine price higher for longer.


“However, it again suffered the anticipated term of its processing, again due to the consideration of the authority that there was a lack of essential information to evaluate the possible impacts of the activities, for example, on human groups belonging to indigenous peoples indicated in the area of influence. In a statement issued this Wednesday by Cosayach, the mining company lamented "the decision of the government authority that recommends rejecting" its initiative, and expressed its concern that "an administrative decision jeopardises the employment of more than a thousand workers." In it, they affirm that during the following months, the Negreiros task "will exhaust the mine area authorised environmentally for the extraction of caliche so operations will cease and contracted personnel must be demobilised."

[ramsey11] 21/12/2023 15:44

I'm hoping to get laid before the end off the year

[beercapafn] 21/12/2023 15:37

I'm hoping for an RNS tomorrow. !

[festario] 20/12/2023 22:49

Well, you obviously did! Beer is quite simply a concerned long term shareholder. Judging by your apathy, and that of the Directors, he is correct to be concerned about his investment.

[bocker01] 20/12/2023 21:44

I wouldn’t get to worked up Serratia. Beers self confessed ramblings a worth less than his socks and Fest just likes rereading his own posts whereas many others do not read them in the first place. As you will have gathered, you’ll be sorely missed.

[mikkydhu] 19/12/2023 16:02

Serratia,
I am another who values your contributions. Thank you for them and please keep them coming.

[ansana] 19/12/2023 14:36

SerratiaLike NB I look in rarely these days but when I do I always read your posts and appreciate them. Just block the block heads.

[festario] 19/12/2023 10:53

He hasn't said that he is? In fact he's clearly stated that he isn't.

[nellyb] 19/12/2023 10:48

Serratia, I only look in from time to time but glad you are going to continue contributing.:)

[pinkpudycat] 19/12/2023 10:30

As the market is dictating it doesn’t make any difference whats happening with Chill operators currently, the main issues are with Iofina!

[chillpill] 19/12/2023 07:57

This hit the Newswires overnight- confirming the above.

BREAKING NEWS | The Environmental Evaluation Service puts the tombstone to the "Negreriros Expansion" project, by Cosayach, after unfavorably rating its Environmental Impact Statement. The company has 30 days to appeal to the Executive Director of the SEA.

[chillpill] 18/12/2023 08:52

Serratia. As above your contributions are appreciated. Just need to use the filter button.

Been reading articles from last 48 hours on the Cosayach Environmental problem.

It looks like they first made the application to expand the Negreiros mine in early 2021. If you believe what is said they will exhaust the existing mine area “during the following months” and 1000 jobs will be lost.

Looks like the Environmental Approval is now time critical for Cosayach to maintain its production. The mine is their second largest production facility so would have a material impact in an already very tight iodine market.

[naphar] 16/12/2023 23:05

Serratia, if you go you will be missed. Maybe just use the filter button…

[festario] 16/12/2023 17:17

SuperG contributed massive amounts to this board, but look where that got everyone?

[obbig60] 16/12/2023 16:28

serratia - You are one of the very few posters who contribute something of value to this board so I sincerely hope that you do not take your ball elsewhere.