Iofina Share Discussion Threads

[monty panesar] 16/3/2014 10:05

Following up on FB's comments yesterday below. At an operational level,as we know from IO1,each plant only needs to produce one tonne of Iodine per week to be at break even operationally. That means once the 6 plants combined are producing around 80t per quarter they are profitable so while it takes time to "optimise" them the hurdle rate for profitability is very low.

Even with the 3 plants working "sub-optimally" they should currently be covering the OPEX for 6 plants and consequently are more than "cost effective".



"It's not just a case of '5 plants operational', there is also the small outstanding matter of all 5 running efficient, cost effective, and producing optimum target levels of iodine. "

[bobsworth] 15/3/2014 23:16

Fair point ammons.

When they say plant optimization this is what I think they are referring to

Fundamentally, there are four parameters that can be adjusted to affect plant optimization i.e. optimal performance.

They are:

Equipment optimization
The first step is to verify that the existing equipment is being used to its fullest advantage by examining operating data to identify equipment bottlenecks to achieve full production.

Operating procedures
Operating procedures may vary widely from person-to-person or from shift-to-shift. Automation of the plant can help significantly. But automation will be of no help if the operators take control and run the plant in manual.

Control optimization
In a typical processing plant, such as a chemical plant or oil refinery, there are hundreds or even thousands of control loops. Each control loop is responsible for controlling one part of the process, such as maintaining a temperature, level, or flow.
If the control loop is not properly designed and tuned, the process runs below its optimum. The process will be more expensive to operate, and equipment will wear out prematurely. For each control loop to run optimally, identification of sensor, valve, and tuning problems is important. It has been well documented that over 35% of control loops typically have problems.

Plant maintenance
To avoid unplanned downtime and poor performance, carryout regular maintenance, cleaning and replacement of disposable parts like filters and membranes.

The process of continuously monitoring and optimizing the entire plant is sometimes called performance supervision.

[ammons] 15/3/2014 18:48

What does "fully optimised" actually mean in reality? Every single plant operating 24/7 with no weather problems, no issues with brine supply, no issues with the oil companies and thier drilling problems as per the last operational update on 29 Jan etc..... Are all 6 plants ever going to run simultaneously "fully optimised"?? Not likely.

[bobsworth] 15/3/2014 16:20

Looking forward to seeing what these averaging figures will be fully optimized.

Fingers crossed Iofina are making good progress on that front and knowledge gained can then be quickly applied to plants 4,5 & 6.

6 plants fully optimized should make good reading.

[crosseyed] 15/3/2014 15:34

FB,

This from the RNS of 17/12/2013...

The Group's IO#1 iodine extraction pilot plant based on Iofina's WET(R) IOsorb(TM) technology ("IO#1"), recently celebrated its successful first year anniversary. This combined with the continued production at IO#2, which recently underwent extensive planned maintenance to refresh high levels of iodine production in the tower, and completion of the first digitally designed plant, IO#3, confirms the rollout and successful implementation of the Group's corporate strategy. Although not fully optimized, the three combined plants are averaging in excess of 1,000 kilograms of iodine per day, satisfying the Group's internal iodine demand while building inventory for future outside sales.

Two indications come from that paragraph:
a) IOF were producing 1 mT/day at that point. That would appear to be a sub-optimal rate, but it is sufficient to satisfy the need of IOF's derivatives production, believed to be about 30 mT/month.
b) It also indicates that inventory is being built up in addition. That might be enhanced by about 5 mT/month from their inhouse waste processing.

So it is certainly not the case that IOF are devoid of revenues and probably net operating profit during this period prior to other IOsorb plants coming on-stream.

Of course, nothing would be better than IOF providing at least quarterly, and preferably monthly, reports of actual production quantities. Even better would be a few financial metrics thrown in.

c

[monty panesar] 15/3/2014 12:42

FB,

We all have our own entry points. I have been invested since the 30's when it was just an idea a couple of years ago. I clearly am more than a risk taker than you! I take on your points but compared to two years ago I think they are now 90pc of their way to succeeding even having some major hiccups along the way.

I would note that current production is probably only just exceeding current usage within The chemicals division which is an established iodine sales business that Iofina bought a few years ago and supply blue chip clients like Intel, Apple and Dow.Consequently I am not worried about iodine sales greatly at this point.

Once I know plants 4 and 5 are producing reasonable amounts I will be that much happier. All being well we will have a better idea of that in the coming weeks.

MP

[monty panesar] 15/3/2014 09:51

It has been a frustrating 6 months waiting for that critical point where IOF becomes the cash cow we have been waiting for. Management haven't helped and with iodine prices falling it has meant that the point for the self financing rollout is having 5 plants operational rather than 3.With the big spend done they should be able to start reaping the rewards in the next few weeks and start building up the cash in the business.

We tend to forget how harsh the weather can be and has obviously caused downtime for the oil companies. On March 2nd the daytime temperature was -13c and on Thursday it was 22c. Can you remember doing experiments in Chemistry to plot the effects of temperature on chemical reactions?

[phsycho] 15/3/2014 09:11

maybe this Cyber..

[rogerbridge] 14/3/2014 22:12

Just a matter of time, 200,000 acres SG.

[monkeymagic3] 14/3/2014 21:19

Looks like a puckered sphincter.

[cyberbub] 14/3/2014 21:16

What's a doji star???

[superg1] 14/3/2014 19:34

Oil bakken stuff just popped up re Continental who lead the charge re the 3 forks.

It gives a good picture re the full lifespan as they forecast 10,000 to 20,000 wells themselves in time



Bott said an estimated 4,500 to 9,000 well locations in the Middle Bakken and Three Forks first bench alone "gave us the confidence for our five year-plan."
When adding the lower three benches of the Three Forks and SCOOP, he said, the number of well locations on Continental's 1.2 million acre leasehold increases to a range of 10,000 to 20,000.

"And when you turn that into potential unrisked resource that's between 4.5 billion and 7.2 billion (boe), which is on top of the proved reserves of (1.08) billion ... there's a tremendous three to four decades worth of inventory."

So, it turns out that Continental's current plan to triple production and reserves over five years is actually part of a longer-range plan extending years into the future.

Hamm declared that the "Three Forks package is larger than anyone knew just two years ago."

[che7win] 14/3/2014 19:33

Another day, another listing

Boohoo.com (ticker boo) listed at 50p today, already overpriced and went up to 90p, finished 70p. Punters are paying for growth years ahead.

I bet if we were listing for the first time today, we would be up 25%, regardless of the market cap.

Crazy prices being paid, meanwhile we are at a forward p/e 7.

70p support regained, it's a doji star!

[alphacharlie] 14/3/2014 18:51

nellyb - for God's sake man. Get a grip! Firstly he has to forward your question to his masters, so Monday morning earliest for any sort of answer and you'll have to wait anyway, coz he has to address my question re his next call. (We're ignoring the fact another Friday has passed since his 60's prediction - too embarrassing for him - I know he's gonna claim that 25 min period about 16:00 as proof of his guru credentials - but we know different).

[nellyb] 14/3/2014 18:29

shonny, you still haven't answered my question.

[woodpeckers] 14/3/2014 18:07

Let him revel while he can. His time is short.

[shonny] 14/3/2014 17:55

What a stupid question. Keep up man.

[nellyb] 14/3/2014 17:26

shonny, have you ever made money out of shorting this co?

[monkeymagic3] 14/3/2014 16:59

Is this helpful?

[alphacharlie] 14/3/2014 16:47

OK, lets ignore the fact it's not a 60s finnish, so again - next call Shonny.

EDIT: beeezz - it's bloody easy when you keep hammering out the same one liners, day after day with no logic other than banal bigotry.

[beeezzz] 14/3/2014 16:45

Come on children, its the weekend the sun is shinning, lets agree its never easy to call the share price top or bottom, I thought my top up at 76p was pretty cheap, getting my break even down to something respectable.

[shonny] 14/3/2014 16:40

Alphacharlie I'll have to start charging for my predictions from now on. I'm too good at this to let you have them for free. Why should I let you benefit from my wisdom when you repay me with ridicule.