Iofina Share Discussion Threads

[chillpill] 08/5/2024 08:45

This might be of interest and help explain some of the variability in the iodine derivatives business.

Iodine derivatives and prilled volumes sold:
2019 243t
2020 155t
2021 321t
2022 221t
2023 185t
2024 222tE
2025 293tE
2026 342rE

Derivative sales were definitely disappointing last year.

[chillpill] 08/5/2024 08:24

For those that haven’t read the CC note they have the following production expectations:

2024 650t
2025 790t
2026 975t

[chillpill] 08/5/2024 08:21

Exactly fft. I had come to the conclusion they might only built one every 12/18 months however they expanded the team last summer to speed things up with all the permitting, land acquisition etc etc. However the CC confirms the plan is to be faster.

[beercapafn] 08/5/2024 08:15

Nano is different, it has a rebel who got his fingers burned.

[nellyb] 08/5/2024 08:02

for those of you who are pro-share-buy back, nano are currently well into one - still no sign of a share price rise!

[fft] 08/5/2024 07:50

Building a plant every 9 months. Nice one :-). Except that, in reality, it is more like 18 months between plants being completed. They also seem to announce them further and further ahead - I recall that IO11 was announced last August, but groundworks only occurred this January and it will enter production in Q3/Q4 this year.

[chillpill] 08/5/2024 07:23

I think CC have been fairly good. They are better equipped in the resources sector and have a longer list of potential investors.

Personally I preferred the finnCap research. I found it easier to follow.

Although I feel the price is oversold I thought this time last year EBITDA would be running close to $15m when probably it is probably closer to $10m.

With the Company expected to have CAPEX running in the $8-9m range for the next 3 years as they build a plant ever 9 months or so we would need EBITDA running close to $15m before any dividends are paid- that’s my feeling anyway.

[bocker01] 06/5/2024 20:41

I am not sure if the critics read their reports, Naphar. Their expectations being so often wildly at odds with what we are told to expect. Cannacord seem succinct and on the money to me. Their reports are informative and contain a lot of useful detail. Certainly far more so than predecessors.

[naphar] 06/5/2024 15:46

One of them ever seem to have done a great job?
But do we really see what they do? I don’t think so….. we just see the share price.
When they were employed I seem to recall being told by Lance that they were significantly more proactive than the previous lot, but maybe that was early enthusiasm playing out…

[chillpill] 05/5/2024 22:18

Not sure on Canaccord. Used to be around £40-50k pa to be a Nomad.

[j4ckster] 05/5/2024 12:07

"Canaccord are not doing a great job!!"

txi, I was thinking the same too.

[beercapafn] 05/5/2024 12:04

Does any know how much IOF pays Canaccord for their services. ?

Please.

[txi] 05/5/2024 09:24

Canaccord are not doing a great job!!

[chillpill] 04/5/2024 21:07

7of9,
Their expansion plans are dependent on desalination plants and pipelines which as we are seeing take over 5 years to build.

The extra capacity will only keep up with the increased demand which is expected to rise 1000t pa.

There is a shortfall in the near term with the 2500t pa Cosayach mine closing.

[chillpill] 04/5/2024 21:00

txi. In part it is due to the exodus from the AIM market although that might be starting to change.
Premier Miton have bought around 6% holding in the last year.

“As we go into 2024, IO#10 currently appears to be in a location of strong brine flows and good iodine content and will be a material addition to the Group. We believe that our current focus area of future plants will be a paradigm shift for the Group, and it will ignite our long-term development plans as we seek to diversify geographically from prior plant locations. In 2023, we were able to provide evidence that Iofina is a highly attractive and profitable Group, and we continued to share our story with global institutional funds, family offices, and retail investors. Our shareholder register expanded in the financial year with the addition of new institutional holdings. We will continue to hold roadshows and investor programs in 2024 under the stewardship of Canaccord Genuity, the Company's nominated adviser and broker. We have a strategic plan to stabilise costs from inflationary pressures, which will help as we go into the next growth phase.”

[severnof9] 04/5/2024 20:06

Forgive the Pun but this is truly a mine of information

hxxps://www.sec.gov/Archives/edgar/data/909037/000090903724000022/exhibit962_technicalreport.htm

see 14.2.3

This confirms the Total SQM iodine production in 2023

Nueva Victoria (including the Iris Operation) currently has a total production capacity of 13 ktpy of iodine, which affords SQM the flexibility to adjust production according to market conditions (iodine price). In 2019, 42,196 Mt of caliche, with a mean iodine grade of 465 ppm iodine, were processed, from which 10.70 kt of prilled iodine was produced. For the year 2023, the mean iodine grade of mined caliche was 398 ppm iodine and the 43.5 Mt of caliche processed yielded 12.2 kt of prilled iodine (11.4 kt from Nueva Victoria and 0.8 kt from PB).

So their 14,000 tonne per year capacity works out at 12,200 tonne per year in practice.

Page 144

In terms of future, Nueva Victoria, and Iris' mining (see Section 13.2, see Table 13-3) and industrial plan, an economic analysis of which is discussed later in Chapter 19 (see Table 19-1) considers caliche extraction at a current rate of 44 Mtpy and estimates an increase in iodine and nitrate production to the year 2030. Projected growth is sequential and is expected to reach 10.1-11.3 ktpy of iodine production by 2029 - 2030.

Their longer term plan is 23000 tonne per year see 14.3 page 146

[txi] 04/5/2024 17:01

they need to put in place a person dedicated to looking after shareholders interests
It doesn't appear that anyone is taking notice of the dire share price.
What's the point of ramping investment if no one cares about the share price

[chillpill] 04/5/2024 07:31

Yep beer on dividend.

Expecting acceleration of growth using capital. 75% increase in production in 3 years up to nearly 1000t in 2026. It works out at a new plant roughly every 9 months.

I prefer the profits generated in be reinvested as it is a better use of capital as it has a high return of capital.

Looking at the CC note the one thing that would change this would be the iodine price staying at these levels into next year.

[chillpill] 04/5/2024 07:20

Best thing from Tom’s interview is they are a long way down the road on the process for IO#11.
Hopefully it can be fully operational by this time next year.

[pinkpudycat] 03/5/2024 14:29

Beer, what’s new, change of management is well overdue!

[beercapafn] 03/5/2024 12:29

If you watch this looking for a hint on a dividend or buyback = you will see quite the opposite.

Just saying.

[zendo102] 03/5/2024 08:12

Another interview with Tom Becker:

[this_is_me] 02/5/2024 20:08

Revenue has more than doubled over the last 5 years; that makes it a growth company.