Iofina Share Discussion Threads

[madchick] 26/5/2024 18:27

Just looking through my notes from the online meeting, so I thought I'd say some things here before I delete the notes...

1. They have a new project manager to oversee new plant construction. One a year moving forward. IO 10 will be 100-150 MT per year, one of best plants, like IO 9 (first time I've heard IO9 referred to as one of their best plants).

2. In addition to new sales staff, they've spent on research and development, and on a revamped website that should be completed in the near future. They hope the website will attract more business and they will make more use of social media too. They are already seeing new opportunities and are looking towards Europe and Asia markets.

3. They are looking at ways to control brine by having brine wells or by adding complementary business or product lines, but nothing imminent.

4. Future plants probably funded in part by debt; this is a good thing if well-managed. No dividend or buy-back envisaged at the moment as they are focusing on investing in expansion. Now is the time for expansion. Io 9 cost around 5.8 million and plants moving forward will cost over 5 million. Less than three-years for payback.

I enjoyed the presentation - I was happy they spent so much time on questions. I don't have the best internet connection but even from Egypt the site worked well and the voices were all very clear.

[beeezzz] 24/5/2024 16:30

What's the saying Sell in May buy back after St Ledgers..

[beercapafn] 24/5/2024 13:26

What a mess the share trading is today. Not following any sort of sense to the trades going through.

[beercapafn] 24/5/2024 08:11

Chillpill: Thanks for your constant flow of information, it is much appreciated.

[chillpill] 24/5/2024 08:06

Confirmation in the SQM earnings call the new water pipeline won’t be finished until 2026 at the earliest- delayed at least a year- all confirms the higher prices for longer thesis.

Seen nothing else recently on Cosayach whose mine expansion has been refused meaning imminent closure of a 2500t pa facility.

A fall of in the iodine price has been the biggest concern but being increasingly clear that isn’t a big concern. As SQM say the price could yet surprise to the upside.

[pjl4] 23/5/2024 22:24

Tut tut... how rumours begin!

[naphar] 23/5/2024 14:00

Beer, There is no departure of Lance so what would they mention….

[beercapafn] 23/5/2024 13:49

I thought the presentation was good. To have Malcome on the screen the whole time was a distraction.

Disappointed that the departure of Lance was not mentioned.

[chillpill] 23/5/2024 08:27

A mere 27 views so far.

[beercapafn] 23/5/2024 07:39

Disappointing share "buys" appetite today after a positive presentation.

[chillpill] 23/5/2024 07:31

Reading between the lines they want to build 1 1/2 plants a year. I think the general plan is to spend upto $8-9 a year on Capex so to expect any dividend will need cashflow above that.

If iodine prices stay at current level and IO#10 and IO#11 are both operational this time next year then yes I think they might consider a maiden dividend.

[redstone64] 23/5/2024 07:18

It was a good presentation yesterday and plenty of time set aside for answering questions which were informative.Steady progress perhaps not as fast as many would like but the company has reduced many of the risks that were there and with each new plant that should give the board more confidence.I think the company will be more willing to consider a dividend or buyback once net cash is above $6m as that level will exceed the annual capital expenditure on new plants so unless they then consider acquisition what are they going to use the excess for?

[naphar] 23/5/2024 07:16

Planning to

[nellyb] 23/5/2024 07:12

AGM on 13th June? Anyone here going?

[fft] 23/5/2024 06:59

Yhe payback time has been 3 years for quite a while now and the plant expansion plan has been very poor. They put in place financing for plant expansion and it is still there. It was a very weak response regarding buyback or dividend. Cash generation is enough to do one a year and do a dividend. The chemical derivative side expansion has been poor. Every year the AR and interims mention expenditure on derivatives and non iodine products but there never seems to be any real change.Btw, a better presentation but plant or chemical expansion has been way less than expected and I think now most people are waiting to see them deliver. And the reduced profit this year due to increased brine payments.

[jwoolley] 23/5/2024 06:35

Agreed. It was the most informative and best presentation so far.

[chillpill] 23/5/2024 06:24

SQM results overnight with the following extract:
“We believe that the global iodine market demand could grow ~4% in 2024. • Given the expected demand growth and limited new supply, we believe the price could remain stable for the remainder of the year, with a possible slight upside.”

Watched the Investor Meet presentation last night which for long term investors is a must watch.

I thought it was the best presentation Tom has done.

Key points for me from that:
-They recognise they need to pump more through IC to drive margins.
-Payback for new plants is less than 3 years- key metric.
-New animal nutrition product coming online during this year.
-Iodine price for Q1 above $65 for Q1- a bit higher than SQM.
-Inputs/chemicals make up around 40% of cost of sales- higher than I thought- one of the key variables.
- IO#10 is not with Ovintiv despite being 2 miles down the road.
-Multiple discussions for IO#11 but very advanced.

[tackems] 22/5/2024 11:33

Why not ask today at the Investors meeting in half an hour...

[activmojo] 22/5/2024 10:36

The sales and Marketing manager, Ken Sullivan has been in place for 10 months, Maybe to soon to expect a change to last year, but I would expect a positive impact this year and it would be reassuring to have an an H1 update on IOC, with his Bio I expect him to hit the ground running. Remember all the IOC upgrades to production and laboratories.

[chillpill] 21/5/2024 18:34

Many have been critical of the expansion of Iofina Resources but I am more critical of the failure to improve volumes and profits through Iofina Chemicals. Why haven’t they been able to increase value added products?

[beeezzz] 20/5/2024 21:01

Is Weakness In Iofina plc (LON:IOF) Stock A Sign That The Market Could be Wrong Given Its Strong Financial Prospects?

[chillpill] 20/5/2024 07:31

Tom in his post results interview indicated IO#11 is down to a couple of options. My interpretation of what he said was at least one of those options is in that area- Kingfisher/Altona direction.

Commodities are starting to go up again as structural shortages in metals such as silver and copper hit home.

[beercapafn] 20/5/2024 06:53

Chillpill: So do you think IO#11 is likely to be in the same cluster. ?