Iofina Share Discussion Threads

[mister big] 02/4/2014 08:08

ps seeing there was a biggest quake in yellowstone for years - if that goes off the debate will be very much shorter!!

[mister big] 02/4/2014 08:03

golf pro ! I caddied on the european tour for three months but the parties won!
I feel that i'm in the mood to buy today not because of earthquake but the fundamentals say so....

[che7win] 02/4/2014 08:02

Copper has rightfully risen this morning directly in reaction to the earthquake.
You might be surprised but stocks react constantly to events around them, for instance the weather, political, economic.

This one may not affect miners, but if I were a copper or iodine buyer,
I would be increasing my buying in case there is disruption.

It's the risk factor playing out, copper prices are reflecting an increasing risk of disruption to supply, better to increase inventories and not be caught short,
thus a short term knock on demand to copper when inventories are low.

Iodine too has to be an increasing risk to disruption in supply. Iodine rose to $100 kg after Japan, so it is very sensitive to disruption.

[superg1] 02/4/2014 07:53

Cyber

As CK demonstrates. the market reacts to what may be the case, not what is the actual case.

Pretty much irrelevant to IOF unless infrastructure issues disrupt iodine supply.

The market anticipation for now is that it will disrupt copper supply. If over the next few days it looks like mines are unaffected the copper price will correct etc.

The reason we highlight it is that historically previous big Chile earthquakes have disrupted the iodine supply and prices.

I doubt any other commodity on the planet is at such high risk from earthquakes as the two countries that cover about 90% of the supply, get hit by them all the time.


EDIT

it's not just about events, it's about actual investment interest in a commodity. Japan is in decline due to resource depletion.

That leaves Chile with all it's problems of costs, power and water, along with the natural disaster issue.
The US has vast resources of iodine and doesn't have all those problems, but no one has seriously sought to exploit it yet..... until now.

[superg1] 02/4/2014 07:41

Alpha

Depends who you are re an rns.

MM3 has been sweating uncontrollably and not slept for a minute since that post, begging for 7.05 Friday to appear with no rns, only then can he hope to get some sleep.

[napoleon 14th] 02/4/2014 07:37

cyber - that's true, but it's an element of the situation
we can not ignore without making a big mistake.

IMO the vast majority here would never wish such a thing,
& most of us still in IOF have remained so for totally different reasons...

[alphacharlie] 02/4/2014 07:36

No rns - Hurricane's "the recovery starts this week" message is being maxed out by the IOF board then and I reckon there just teasing that Ennismore lot with their a millionaire golf pro MrBig.

[superg1] 02/4/2014 07:33

Not suggesting that Cyber, it's a common problem for Chile and the mining sector that happens from time to time

Red hot PS didn't mind pushing IOF when the Japanese earthquake struck.

When the Russia/Ukraine issue looked like having a very nasty start point, it was all the stock market talked about.

If black swan events like a bod in an aircraft incident happened, I can assure you bears would pile in to profit from it (gleefully).

Not wishing ill on Chile people hence the highlight of perhaps power disruption, the odd blocked road, and industrial water supply disruption.

[cyberbub] 02/4/2014 07:26

Its a bit tasteless to focus on how the quake might improve our wealth, rather than the people suffering IMO

[superg1] 02/4/2014 07:18

The northern part of Chile is being declared a disaster zone and armed forces are on their way to the area, President Michelle Bachelet said at an overnight press conference. The presidents of Peru and Argentina have called, lending support if needed, Bachelet said.

The earthquake was so strong that the shaking it caused in La Paz, Bolivia, 290 miles from the epicenter, was the equivalent of a 4.5-magnitude tremor, authorities there said. The quake triggered at least eight strong aftershocks in the first few hours, including a 6.2 tremor.


Early doors but over the next week or so the extent of infrastructure issues will surface.

Mines could have no power, seawater pipelines damaged, mountain roads blocked etc etc

[che7win] 02/4/2014 07:15

Sandbag,
I did mention a big one coming, further ones not ruled out.
Not so sure that won't cause disruption, it may close the ports for instance, 8.2 is exponentially higher than previous ones:

[superg1] 02/4/2014 07:11

Sand

It may affect mining it has in the past with earthquakes of that size. Early doors to know the extent re landslides, damage and power cuts. Especially the extent of the power cuts, infrastructure affected and so on. It happens to be near the iodine producing areas. EG Cosayach are in the iquiqie area.

[sandbag] 02/4/2014 06:56

Dreadful earthquake in Chile.

No effect on mining but it can only be a matter of time as seismic occurances are becoming more frequent:

[superg1] 01/4/2014 23:46

See...... now that just sums up the voting system. Complete Sacrilege of the gospel according to Far side.

I dare not check to see if anyone voted down the Viz post, now that would just be the last straw.

[bobsworth] 01/4/2014 23:31

sandbag - whoops how can I forget Helium. Just too many assets! Edited thanks.

[superg1] 01/4/2014 23:23

There is a market and Chile are not in the game

[sandbag] 01/4/2014 23:20

Superb post Bobsworth,

Anything to add for the helium?

[writz] 01/4/2014 23:16

I'll buy two, MM3. Just to get you started.

[monkeymagic3] 01/4/2014 22:40

They would just stick on, no surgery required.

[awolagain] 01/4/2014 22:17

Bob

eloquent, concise and nailed it...think I will buy more tomorrow...me thinks not at 51p unless I get up very early.

So over sold...very chart is screaming to break out.

[che7win] 01/4/2014 22:16

Excellent post Bobsworth.

Even If they roll out no more full plants after io6 this year, their iodine production should increase 50% between this year and next.

It's will be above 100p when the market works out the growth. Think about it, the iodine price recovering will show what a ludicrously low price this is.

[bobsworth] 01/4/2014 21:55

Why Lance still believes Iofina is a 1 billion dollar business in the making

With totally brand new technology it has, with an eye on cash. quickly built a profitable 6 plant base from which to expand from (something the market should acknowledge!).
Hence it has now become a proven and very attractive small business with very significant growth prospects.
It has world beating technology that is patent protected worldwide.
It has acquired safe funding terms that will see it through to profitability and can afford to repay.
It is able to produce iodine a lot more cheaply than it's competitors.
It's competitors have significant business problems with their inferior methods of iodine extraction.
Japan are in decline with reducing gas field + recent radioactive contamination concerns.
Chile extraction costs are high and becoming less profitable as their costs rise.
It's USA competitors have environmental restrictions that could shut them down
Iofina's iodine extraction method enjoys a much lower carbon emissions than its competitors.
Iofina has a very significant home market on which to build their business on.
A 6 plant profitable business that will be even more profitable when iodine prices rise again in the coming years.
Has proven and reliable plant technology that works in very extreme climate conditions.
Now rightly focused on optimisation to reduce their opex cost and increase their production outputs further and to maximise future plants performance.
It's WET® approach employs two different iodine extraction methods allowing it to target different iodine sources e.g. mobiles which will be BIG!.
Has a growing iodine derivative division with land and operational capacity to grow further.
With increasing profits it will quickly be able to fund expansion of its derivatives division via acquisition.
Significant non core business potential is imminent offering significant additional revenue/profit streams to further fund plant roll out.
Acquired significant water expertise to lead on further water rights applications and their implementation.
Has increasing land value assets that could increase significantly if oil like Helium is found in commercial quantities on adjacent lands.
Has access to over 1,000+ brine sites.
Potential to double, treble or quadruple their business in the coming years.
Significant Brine Salt Disposal opportunities present.
For such a small company it has considerable institutional investment thus demonstrating it's massive potential.

As such:
Iofina has a unique PROVEN business model now that is now likely to attract a potential bidder.

...............and all this for 52p with little or no risk of share dilution via an equity release.

Conclusion: Temporarily Over Sold!

NAI

[napoleon 14th] 01/4/2014 20:44

"The price got over ramped by the city but is now at an attractive level, to move forward."

Too true, & starters' teething problems are a known tho' unquantifyable aspect.
IOF have done a lot better than many (KMR?),
& the environment is even more propicious to them than a year ago.