Iofina Share Discussion Threads

[ansana] 30/1/2014 09:17

The brine to io3 is a mirror of io2. A small dent now and later they will have more brine than they can process. Make the most of the sweet spots and build the plants. As we go forward things like this will become less important. We need a critical mass so as someone has already said this morning patience.

[cityboy5] 30/1/2014 09:17

Market Cap now below £100m which may give some II holders fund issues.

[jointer13] 30/1/2014 09:06

patience is key they reckon.

the way the iodine industry is at the moment ie chile mining costs etc.
and iof appearing on the scene with there low costs and patented technology,and the rollouts continuing,albeit a bit behind,its only a matter of time (and not that long)before we are a top producer or get bought out.
the company has a lot going for it.
the niggles with the start up of plants don't bother me, they get sorted.
ive been in the building game all my life and see it all the time.
very very rare to things run to schedule.
onwards and upwards.

[n3tleylucas] 30/1/2014 08:52

"The Board will update shareholders in due course."

Sorry, but it's amusing.

[tsmith2] 30/1/2014 08:38

Iofina, specialists in the exploration and production of iodine and iodine specialty chemical derivatives, is pleased to announce that a meeting with the Montana Department of Natural Resources and Conservation has been set for January 30, 2014 to review the Group's non-core water rights application.As requested by the State of Montana, and following a review by the Company's retained consultants, the meeting will discuss the engineering design on the water depot and the letters of intent for the water usage. The Board will update shareholders in due course.

[jointer13] 30/1/2014 08:35

napoleon...here's one for you.




Chile mining industry facing same challenges as Australia - Mitchell Hooke

By Greta Bourke - Wednesday, January 29, 2014



The mining industry in Chile is experiencing exactly the same trend in terms of challenges as Australia, Mitchell Hooke, who was head of the Minerals Council of Australia from 2002-13, told BNamericas.



Chile is bearing the same legacies of the drive for production and price-led growth that Australia is, according to the executive.



Power prices in Chile have risen around 11% a year since 2000, while mining industry employees in the country receive the highest wages in South America. At the same time, productivity has been declining.



"Like Australia, Chile is also facing higher energy costs, but they have the added problem of energy security, plus rising labor costs and lower productivity," Hooke said.



"Probably the most significant issue is that the inflated operational costs are more structural than fleeting. In Australia, costs doubled since 2006 and I have been hearing that in Chile they have increased threefold."



"At the same time, capital intensity has gone through the roof and Chile is in the same bracket as Australia," Hooke said. Poor productivity and sub-optimal capital management are a result of higher metals prices, as "costs rise to revenues."



Wages followed the same trend as they became based more on capacity to pay rather than productivity offsets.



COMMUNITY RELATIONS



Permitting has also become an issue in the country as Chilean miners have been facing an increasing number of lawsuits which have led to project suspensions and delays. Major mining projects that have hit development hurdles due to community opposition include Barrick Gold's (TSX, NYSE: ABX) Pascua Lama gold-silver project and Goldcorp's TSX: G, NYSE: GG) El Morro gold-copper project.



Improving community relations is probably the greatest achievement of the mining industry in Australia, according to Hooke. "When I joined this industry around 10-12 years ago, it was an industry under siege," he said. "Back then, it was decide, announce and defend."



The epiphany came with the commitment to sustainable development and the publication of the principles of sustainable development in 2005, which involved 900 stakeholders.



"In Australia, we have 70-80% support in the community now," Hooke said.



TAXES



The tax change proposed by incoming president Michelle Bachelet, who plans to increase corporation tax to 25% from 20%, will not be good for the Chilean mining industry, according to Hooke, who was one of the forces behind the "This is our story" advertising campaign in Australia, in which mining employees talked about the importance of the industry. The campaign was launched by Australia Mining in response to the 30% mineral resource rent tax which was implemented in 2012.



"There are two forms of taxing the mining industry," Hooke said. "One is through royalties which is a charge on the cost of doing business. The other is a tax on profits which destroys value, and people are just not going to invest in jurisdictions that destroy value."

[jointer13] 30/1/2014 08:14

water meeting today...probably go to a hearing.

chance pdtg may get awarded today...if I picked things up right.

sg will know.

[theprovosts] 30/1/2014 08:11

Would someone be so kind to update me on the water permit thing? That news a few weeks back dropped us over 10% and any clarification on this would see us gain a healthy boost. Thanking you! Have a great day

[jointer13] 30/1/2014 08:06

the brine disruption is no big deal it wont last long....we had the same with io2 (and look at that now) and will probably have the same on future plants..par for the course.

[tsmith2] 30/1/2014 08:03

Big today tomorrow

[shonny] 30/1/2014 07:55

How far will this dive today? Will it go under 70p? Probably.

[gadolinium] 30/1/2014 07:54

Ansana,
Is your 'understanding' of the brine disruption being not a big deal based on communication with the company?

[peterz] 29/1/2014 23:44

Is Scrutable still in ? Not heard from him for quite a while!

[superg1] 29/1/2014 20:57

Alfie

There are a lot of visible elephants, some bigger then others and no doubt the odd invisible one.

A simple one more obvious than that, which creates revenue is to pump cleaned Atlantis water into the river and agree to let someone else take it out downstream and pay for the privilege, as IOF would own anything they put in the river under storage rules.

However the first task is to concentrate on the core business, they keep quoting that.

300k acres of 100' thick 3 forks should have some oil in it, but it's down the road.

IOF had a lot more acreage, at one point, but let some go. In fact one section they let go, went for a very tidy sum, sold on by the acquirer, a few years back.

[ansana] 29/1/2014 20:47

I understand that the IO3 brine issues is not such a big deal. It is only temporary. It dents their production just a bit BUT the drilling and the new wells will add volume to all the plants in the area long term. No bad thing IMO. I don't know why they bothered to mention it in the RNS, a small thing became over blown, still thats the AIM for you. Bit by bit step by step it's getting closer presentations, io4/5/6 up and running, external sales and now quarterly figures, real figures so they must feel they will have something to shout about soon..... And I didn't mention the water someone told me that is soon!

[gadolinium] 29/1/2014 20:44

This news release from sharecast reads very downbeat, concentrates almost entirely on the disruption to production with no mention of the important maiden iodine sales.

Date: Wednesday 29 Jan 2014

LONDON (ShareCast) - Iodine producer Iofina has reported production disruption at one of its plants, hitting its shares.

Iofina, which produces iodine in Texas, Montana and Oklahoma in the US, said fracking and drilling activity had affected incoming brine volumes to its IO#3 plant.

The company said it was working with the operator of the plant to minimise brine volume inconsistencies and would update the market on that in due course.

It added: "The increased drilling is a positive indication of the operator's view to continue expansion."

Iofina said production at its IO#2 plant was consistent and it was making good progress with construction of two other plants.

Chief Executive George Lantz said: "We look forward to steadily increasing production as additional plants continue to come on line and we look forward to updating the market on production levels on a quarterly basis. Management continues to expect iodine production during 2014 to be on plan."

Shares fell 6.46% to 76p at 15:45 in London.

[square1] 29/1/2014 20:33

Being a somewhat simplistic person my take on today's update is that at 150p a share it would have been disappointing but at 75p a share it's ok. Progress is being made, albeit slower than we would like, but once we move up to 6 plants the business takes on a very different scale altogether. Make sure to deliver on Q1 builds and the rest of the year will pick up v nicely. A nice offtake agreement would also do a power of good, and who knows maybe some positive news on water. Avoid negative surprises and we can make decent progress,

[woodpeckers] 29/1/2014 20:26

It would make sense that it is presumably the shortage of brine at IO3 and surplus at IO2 situation (plus the obvious economy of construction) that has prompted the company to reduce the number of permanent plants in favour of concentrating on mobiles this year.

[alfie4048] 29/1/2014 20:19

Monty,

I hear what you say, but doing a gas deal on our land with a free carry would not inhibit the iodine side of the business in any way. Simply sign the contract and wait for the cheques to start rolling in. In fact, the extra revenue could speed up the iodine roll out.

All I'm saying is, if the current trend in gas prices continues, this could be the 'elephant in the room' which no one saw coming (good elephant, not bad) if you see what I mean.

[monty panesar] 29/1/2014 20:08

Alfie,

I hear what you say but for the next few months it's head down and just maximise iodine production and sell it. There is no point having spent $2-3m on each plant to then spin off on a tangent.

The payback period on these plants is incredibly fast. Even at a very conservative 150t per plant per year that at a $40 iodine price is $6m revenue per year or about $3m gross profit. Each plant pays for itself within a year and we know from previous data IO2 is a 250t+/year plant.

It is profits that make share prices go up and that has to be the short term priority.

[alfie4048] 29/1/2014 19:48

as I type....

Gas up 9% today

ttp://www.bloomberg.com/energy/

[rogerbridge] 29/1/2014 19:48

It looks as though we are back on track with the exception of IO3 where we have been short of brine for some period/s.
Shortage of brine in the short term is annoying but as pointed out earlier, as IOF have more plants in operation there should be no problem of meeting targets.
We know that the IO2 location has a surplus of good quality brine and it will be interesting to see how IO6 performs, after all it is the latest type of design.
IO4 & IO5 should be up and running shortly, so cash flow will be greatly improved with lower costs per kg. I hope that IO4 & IO5 are linked up to plenty of brine.

With the possibility of water and increased production, I believe that we should be past our low point very soon.

[alfie4048] 29/1/2014 19:45

Rather than OIF producing the gas, I was thinking of a 3rd party expert E&P company coming along and wanting to drill, giving IOF a free carry, regardless of the iodine content of any water produced. I think I read somewhere that the US is gearing up to export gas by ship. They are converting ports to allow for this, first shipments to be this year.

With 290,000 acres in our portfolio, any such deal could be huge, and another string to our bow.