Iofina Share Discussion Threads

[beercapafn] 24/6/2024 10:09

Beeezzz: They do have (some) skin in the game.

Not much, but some.

[beeezzz] 24/6/2024 09:59

Risk-Averse is BOD policy, monthly pay packet is what counts...

[josh_ftm] 24/6/2024 09:53

Looks like we're on the same page Beer!

[josh_ftm] 24/6/2024 09:51

So the share price drops again, looks to be constant drop of selling by the LTH's. I don't understand why the company are not looking to increase shareholder value given that we are 50% down YoY. In 2019 (5 years ago) they raised £7.5million at 16pps, which was to clear existing debt and allow them to 'accelerate the development' of new plants.Looking at the latest loan notes from July 2023, they can draw down at an interest rate of 2.11%. Surely it makes sense to begin a buy back programme, given the share price is 17.75pps, which is 10.9% higher than 5 years ago. Make use of the low interest debt facility to expand and repay the debt with the profits generated for a new plants. However, the BOD do not seem to want to use the facility and want to build the plants using profits generated from the year.Alternatively, why not throw the 'kitchen sink' at it, and use the profits AND debt facility to carry out a rapid expansion programme. They could even look at prefabration units off site, which would be more of less plug and play once new site become available. Looking at previous images, appears the towers could be constructed this way, plants could be 'standardised' and the larger vessels delivered direct to site, with all pipework and fittings outside of the pre-fab units being installed onsite, but pre measured/fabricated, so it's essentially a 'LEGO' set. This would ensure 'we' are ready for when a new site is signed and we can reduce the construction time to ensure iodine can be recovered as soon as possible after signing new contracts.Just appears to me the BoD are a little lacklustre in doing thier utmost to provide shareholder value, which is something they continually spout in most RNS's and the investor videos. Either that, or we aren't being told enough about the business to excite current and potential new investors. To me, this cautious approach is wearing very thin, and without a clear 5 to 10 year expansion strategy, we are expected to just accept 1 or maybe 2(if we're lucky) plants a year and keep 'plodding on'.Really not sure what is going on with Iofina, but sentiment seems to be changing for the worse and the BOD have to come up with new ideas to get some of us back on board. If they don't start to listen, maybe we can all hope that someone comes to acquire the company at a 'rock bottom' price, but at least the LTHs would be out at a better deal than the current share price.Thoughts welcome, but hoping for some sort of catalyst to turn this around.

[beercapafn] 24/6/2024 09:22

Now tell me that a buy-back program is wrong. 33p down to 17.5p.

BOD keeps repeating that better return holding cash reserves for future plants is the best use of cash.

The share price has halved in the same period when they opened one new plant.


A buyback program would have supported or increased the share price, or at least soaked up the disgruntled shareholders leaving.

Is Lance watching, ready to take it private?

[qsmeily456] 24/6/2024 09:12

Support gone and down it goes I ❤️ this share so easy to make 💰 and so many stupid on the other thread 🤣🛩🩳🩳9651;

[pinkpudycat] 21/6/2024 21:21

But many seemingly still support the inept BOD, wake up and smell the coffee, the next time you get the opportunity to vote them out, use it!

[zendo102] 21/6/2024 21:06

The key to investing in a value share is finding an "outer", something to catalyze the share price and turn it into a growth stock.

The problem is there are no positive surprises left for IOF; there is nothing on the horizon to get the share price moving upwards. All we have are banana skins that can crash the price. If production drops, or the price of iodine drops, or IO#10 is delayed or IO#11 is postponed for a significant time, then the price will move downwards.

THE RISK REWARD RATIO IS TERRIBLE.

So the share price drifts lower as people see better alternatives elsewhere.

And then lower still...

Yes, as beercapafn says, there is an "overhang" on the shares - but it's not some random seller looking to undermine us, it's all the long-term holders (on this bulletin board?) who have lost money and who are waiting for just enough of a rise to get out without too much of a bruised ego. We are waiting to sell, not looking to buy. We are the ones keeping the price low.

WE are the overhang.

[chillpill] 21/6/2024 09:18

At least Iodine price seems to have firmed a bit recently.

[rambo1122] 20/6/2024 16:07

Well at least we have a new website

[chillpill] 20/6/2024 08:50

I think we have been over this before tbh.
The premise of a share buyback program is it can’t be used to “prop” the price up.

If a large block became available they could do a tender offer.

Anyway all pie in the sky for now.

[beercapafn] 19/6/2024 09:37

DK37: That is extremely interesting and relevant.

Thanks very much.

Looks like the BOD has not read the rules. So really have not considered the mechanics of how or any serious plans for a buyback.

[naphar] 18/6/2024 18:14

They won’t clear that beer… they got the permissions so they can buy large blocks that become available and are not just sold in the market… they can then negotiate on price. The AB block is the example but they didn’t have authority to buy at the time.
So if Newlands, Sneller etc wanted to sell, I expect they would then try to negotiate a deal, buy, then either cancel them or drip feed them into the market over time for a profit.
A 350k sell order wasn’t even £70k, below their radar I think

[beeezzz] 18/6/2024 10:58

naphar...Thanks...Seems we still have sellers at this price...

[beercapafn] 18/6/2024 08:13

there is a large overhang from the 350,000 sell order at 19p last week. Just the opportunity for IOF to clear out the overhang. Just saying.

[naphar] 18/6/2024 07:54

Fft I don’t know how long the brine contracts are for, but I would say maybe 20 years, on the basis that the 2 renewed this year we’re seeing their first renewal I believe.

On the chemicals side, the roi of chemicals vs iodine extraction was discussed and it was clearly stated iodine production has the better roi, by a long way I would suggest

[fft] 18/6/2024 02:18

Do you have any idea how long the supply contracts are for the brine suppliers ? Are they are a rolling 2 year or similar ? Or is there no break clause, so they could stop supplying brine tomorrow (in the case of an oil price shock for example). Not having control over the brine supply is one of the big issues and makes forecasts more than 2 or 3 years out risky. I suggested to Tom a few years ago that they shouldn't build any more plants, and concentrate on the chemical derivative side. They can buy iodine in to add value, but should also build up the non iodine business. But, despite many RNS's mentioning chemical upgrades (one for the fortune 500 company springs to mind that never got mentioned again?) there never seems to be the growth I expected. Disappointing.

[naphar] 17/6/2024 22:25

“That’s assuming they don’t decommission other plants”

Which is why I asked how stable the other plants are and was told currently seem to be stable with a good longevity ahead, with no reason to believe currently that any of them would need to be closed. Of course things can change and I suspect a significant reduction in iodine price could cause such a closure, as could a problem with wells supplying brine to a plant, but both issues seemed unlikely in next couple of years at least, based on discussions.