Iofina Share Discussion Threads

[cyberbub] 28/2/2014 07:40

The management here can't win, according to peoples' posts on here. Some say they should have waited unil spring to avoid the winter cold. Others say they needed to press on through the winter to restore their credibility but then attack the management when completion is delayed a few weeks by cold weather!!Can we let them just get on with it?! Jeez.

[joestalin] 28/2/2014 07:38

What does Shonny think? - that is what is important.

[ansana] 28/2/2014 07:35

"Experienced start up and production staff" ....."The completion of IO#4 solidifies Iofina's capabilities of constructing and operating multiple plants simultaneously". Everything had to be signed off at IO3 that's not a surprise they do have to follow regulatory and correct procedure. That will do me. Well done IOF.

[warrensearle] 28/2/2014 07:33

Yes its not all doom and gloom but I have learnt with iof RNS skip over the first two paragraphs and then look for the delays - I still remember CF stating back at the AGM we would have 6 by end 2013 and another 6 or so in 2014 with each RNS that gets pushed out little by little

[superg1] 28/2/2014 07:33

Hut

It gets cold in the US we all know that, and it affects the oil companies too, who tend to downgrade activity during that period.

They could have waited to spring to build them to avoid cold weather. It is factor that affects things.

No planning or any amount of dredging, would have prevented the end results we had here re flooding.

On that point, why people that buy houses on flood plains, then moan about flooding, defeats me.

[naphar] 28/2/2014 07:29

Well Warren, yes, that's how I read it. A little disappointing maybe, but notreally out of sync with what we were told before.

In Feb we were told progress indicated a handover during Feb of Io4&5 to operational teams. (Edit: handover does not mean production in feb). Before that we had been promised io4-6 in Q1. "Indicates" is not a strong term, the promise of Io4&5 becoming operational in Q1 is still on the table.

We have been told Io6 will be operational in Q2. Disappointing as I am not sure we were told that before now. But it seemed obvious given the location was moved. Edit: just seen some think we were told it would not be Q1,I forget and need to check back.

Good that both Io4&5 will be operational in Q1, production will start, and that will allow the ramp up of external sales to begin in earnest once the teething problems we seem to have with all plants have worked through to full production.

[orslega] 28/2/2014 07:26

yes, looks like weather has not helped...

anyway, so four units producing within next couple of weeks....and six producing in next 12 weeks.....and clock ticking on water...plenty to look forward short term....

[superg1] 28/2/2014 07:25

Warren

Io6 was said to be later some time back, when they were in the decision making process of whether to site it at the io2 location (due to excess brine) or a new location.

Completion to production always has a hand over and testing period, you can't have the brine soup and chemicals they add, spilling out all over the place, hence they do fresh water runs first. Plus the risk to staff etc with a hot chemical soup spraying through seals.

Spills and the risks associated with that, combined with other matters are regulated. I assume a bit like building control over here for those that understand that.

[jackster193] 28/2/2014 07:24

Hydrotesting takes no longer than 36hrs. So testing should be finished inside 1 week. Then producing Iodine will commence.

[owenga] 28/2/2014 07:21

In 3months time when all 6 are producing iodine we are not going to be worrying about minor delays!Just need a bit of patience. The share price will be a lot higher by then too.

[warrensearle] 28/2/2014 07:14

So io6 delayed until Q2 and io4 non operational until at least mid March

[remp31] 28/2/2014 07:14

We'll done iofina

[captain_kurt] 28/2/2014 07:13

A positive step forward.

[orslega] 28/2/2014 07:09

RNS Number : 1577B

Iofina PLC

28 February 2014

28 February 2014

Iofina plc.

("Iofina" or the "Group")

(LSE AIM: IOF)

Completion of IO#4 Iodine Extraction Plant

IO#5 on track for completion in March

Iofina, specialists in the exploration and production of iodine and iodine specialty chemical derivatives, is pleased to announce that the construction of the Group's IO#4 iodine extraction plant based on Iofina's WET(R) IOSorb(TM) technology is complete and under the control of Iofina's operation team. The tie-in to the well operator is also complete and has been approved by the operator. The plant is located in the vicinity of IO#2 and IO#3.

The Board is pleased to announce that the Group's experienced startup and production staff have taken charge of the facility from construction and fabrication teams on site and are in the process of hydro testing the plant prior to the acceptance of brine water, as well as testing of in-line automation systems. The Group hoped to begin hydro testing at IO#4 earlier in February but was limited by winter storms and cold weather. Operator tie-in was also scheduled to be complete at that time but was delayed due to cold weather in the area.

Completion of construction of IO#5 is expected in March and the plant will be turned over to operations staff at that time. Production of iodine for both IO#4 and IO#5 is conditional upon final regulatory inspection and approval. Inspection is expected to occur in mid-March with approval thereafter.

Construction of IO#6 continues with completion expected in the 2(nd) quarter of 2014.

Iofina's business strategy is to identify, develop, build, own and operate iodine extraction plants currently focused in North America based on Iofina's WET(R) and IOsorb(TM) technology. Today's news follows on from the successful commissioning of the Group's IO#1, IO#2, and IO#3 iodine extraction plants.

Commenting on today's news, Iofina's Chief Executive George Lantz commented:

"The completion of IO#4 solidifies Iofina's capabilities of constructing and operating multiple plants simultaneously. Production from IO#1-IO#3, shortly to be complemented by IO#4, together with anticipated production from IO5# and IO6#, further advances Iofina as a major player in the iodine market."

For further information, please contact:

George Lantz, CEO

Iofina plc

Tel: [phone]

[freshvoice] 28/2/2014 00:24

Ice
I hope you are right re update, will believe it when (if) it comes.

[cool hand kev] 27/2/2014 23:17

johncsimpson: where did you see that?
I would assume higher volume if an RNS was pending

[bobsworth] 27/2/2014 23:10

chew7win
Agree lower capex mobiles could help short term cash flow and help fund plant 9 etc

Expect we will get an update soon on the mobile strategy!

[johncsimpson] 27/2/2014 23:01

I see Ennismore do not (as reported and as of this evening) appear to have altered their position re IOF. Interesting, since presumably they are aware of the impending news release re io4 and possibly io5 and possibly in 8 hours!

[che7win] 27/2/2014 22:07

Naphar,
Yes, all good points, factoring is another option sort term as you say.

I will say this in fairness to management, the falling iodine price has probably had a significant impact.

If we are making $20 on raw iodine sales, a $5 increase adds 25% to gross profits. When the iodine price was at $60, we would have doubled our gross profits, so obviously a big factor.

Our forward EPS next year according to one nomad is 11p at $45 iodine rates.

[ammons] 27/2/2014 21:54

So cutting back on plants from 12 to 9 (or rather, up to 9) is due to prudent cash management. The company were castigated for reducing the planned number of plants.

[naphar] 27/2/2014 21:48

Bobsworth,
don't complicate it too much. The inventories piece is already covered by having to fund the costs of producing the iodine. Those costs are just transferred to the balance sheet as inventories. Of course, if you have to build the inventory to a level before you can make sales, you delay bringing that cash in, which is the catch 22.