Iofina Share Discussion Threads

[chillpill] 19/5/2024 08:31

Just checked the location of IO#10 and it is 2 miles due west of IO#9.

[beeezzz] 16/5/2024 19:55

Its wait for expansion to finally make a huge profit, then we may see some movement in SP, I expect many investors are still in loss position...so sit back and enjoy the ride.

[chillpill] 16/5/2024 09:20

If they are going to spend $9m a year on expansion for the next 3 years as indicated by CC then share buybacks are unlikely this year unless we see another price spike.

[beeezzz] 16/5/2024 08:59

Doesn't matter what Tom says the market is not interested, its either AIM, or what the company says and does are two different things, where is this buyback...

[chillpill] 15/5/2024 20:36

Reading the various snippets Tom gives us it looks like 9,10 and probably 11 are all with Ovintiv.
Ovintiv appear to incorporating the plants into new drill areas around Kingfisher County.
This helps to explain why some of the builds haven’t been as fast as we would have liked.

He has said they are also looking at plants in other areas.

[gb904150] 15/5/2024 15:44

Thanks Rambo.

[rambo1122] 15/5/2024 15:16

Interview with Tom Zak traders cafeCan't post linkIo11 seems pretty nailed on

[chillpill] 15/5/2024 07:39

Looking back it seems the 20p seller was cleared last Wednesday.

[naphar] 15/5/2024 07:16

Curious as to why the price has jumped in early trading on that announcement

[beercapafn] 15/5/2024 06:49

For a tantalizing moment saw the headline and thought, OH - at last..............

What a disappointment.

[naphar] 09/5/2024 21:59

On another note, in my industry I am seeing much more ability this year to drive down contracted material prices compared to last year. Not by much maybe, and. It across the board, but runaway increases seem to be behind us currently, I would expect that to help Iof a little input cost wise as well, or at least to give some stability.

[naphar] 09/5/2024 21:56

Someone was mentioning the last price boom where material sales prices of derivatives were locked in at pre boom prices. It’s not really Iof management fault, such annual fixed price contracts are pretty normal in this market and no-one could have foreseen the earthquake that prompted that price spike.

[chillpill] 09/5/2024 19:35

I think management shoot themselves in the foot a bit by not talking more about the complexities of identifying and building new plants. I know some of it is for competitive reasons but all the permitting and acquisition of land etc is not that easy.
Management having been all bad. They stopped them from going bust and did a great job fixing the debt. Been to conservative? With hindsight probably.

[fft] 09/5/2024 10:02

That is the correct theory about having in-house vertical integration etc etc.Except, do you remember many years ago when we had the last iodine price spike ? Mgmt blew everyone's revenue and profit expectations out of the water by forward selling for a year nearly all the chemical divisions products at the lowest price for the year :-). Hard to make up, but they were selling iodine derivative products for less than they could have sold the raw iodine in the spot market. And no one seemed to know before the results came out. Not even the mighty SuperG who claimed to have the inside line.....Different management (though I think Tom was running the chemical side) and Lance was around as well.It is hard to overestimate the ability of IOF mgmt over the years to come up with a blinder !

[chillpill] 09/5/2024 09:13

Beer,

In ref to 8864 question in theory more that gets processed through Iofina Chemical the better as you have a value added value product. That is the whole point of having a vertically integrated company.


Knowing the volumes of iodine were going to increase the expansion of in-house products has arguably been lacklustre.


Probably another question for the AGM!

[chillpill] 09/5/2024 08:59

Ultimately higher growth is better than dividends as long as the Return on Invested Capital is good- which it definitely is at current prices.

[j4ckster] 09/5/2024 08:55

Thanks for sharing Tackems👍

[tackems] 09/5/2024 08:27

I emailed Tom Becker concerned that the share seemed to be languishing in the depths and noted that I had been a shareholder with a significant number (to my mind) for over 15 years. I suggested that a maiden dividend now that we are debt free may change things. Tom kindly replied and I have posted it below:

"Thank you for taking the time to send your email.

We also share your frustrations with the share price. We have continued to grow our revenues, expand our production facilities, and have remained very profitable. However, sentiment for AIM stocks has been subdued for quite some time. Looking across at other growing companies on AIM, we are certainly not the only ones not seeing our growth fully reflected in the share price.

We do hope that stock market sentiment will improve in the coming months with talk of interest rates falling. We continue to engage with potential new investors who like the story and we are committed to bringing new holders onto the share register. In terms of growth, we continue to invest in R&D and IO#10 is on track to come into production in Q3 2024, whilst further new plants are in negotiation and planning phases.

Noting your question re. dividends, currently, our strategy is to reinvest our cash for growth. However, we do review this policy on an ongoing basis, including share buybacks.

If you are due to attend this year’s AGM, I would be very happy speak to you and further address these questions or any others you may have.

Kind regards,

Tom"

So slow and steady continues and all in all I think I will stick with them even though I am just at breakeven.

[chillpill] 09/5/2024 08:10

Naph,

Looking at the planning application and other comments from TB it does look like IO#9 is different from the early plants.

IO#9 appears to have been set up as part of a “closed loop” system with the brine going through a filtration and separation system before being returned to Ovintiv. If I am right it means a greener solution and means capacity is not restricted by SWD injection restrictions.

Just my observation. Worth asking for clarification at the AGM.

Did look at the Ovintiv results on Tuesday. They are spending another $100m+ in the area this year bringing another 7-10 net wells.

I think the reason IO#9 didn’t come on line as fast as we would have liked is we were waiting on the new oil wells being drilled. Iofina were only part of the project.

FWIW I think IO#10 is with Ovintiv and they didn’t commit to the second plant until the first one was fully operational…which is reasonable.

[naphar] 08/5/2024 21:54

Do we know when the AGM is yet? I don’t recall finding it in the results rns

[naphar] 08/5/2024 21:51

Hi Chill

Reading the note in full I was somewhat surprised by the production forecasts and all that goes with them such as Capex etc. the speed of rollout was surprisingly quick given how long 9-11 are taking.

I know they added resources but the bottleneck seems to be the contracting with oil co’s so I am interested to learn at the AGM how they will speed that up.

[nellyb] 08/5/2024 18:59

beeezzz, hope so. :)

[beeezzz] 08/5/2024 10:48

Looks like a 150k share buy today, maybe some interest coming in this undervalued company..

[beercapafn] 08/5/2024 09:22

Chillpill:

Please, do you have any handle on the selling price difference per KG between Iodine Derivatives and plain Iodine?

Your table would imply a better margin in years to come if it is more than a $.

Thanks, always see your posts as informative and insightful.