Iofina Share Discussion Threads

[n3tleylucas] 28/4/2014 15:46

Dipping again... reality?

[dcgray21] 28/4/2014 15:45

Naphar - if it were above normal expectations that would make sense as they had a large shipment delayed from 4Q13 so one would expect that to be shipped early 1Q14 and still be sitting in receivables over and above the normal receivables balance expected for this time of the year

[dcgray21] 28/4/2014 15:42

Bobsworth - so with that in mind re IO2 output plus IO4 and 6 being relatively unaffected ? by the brine supply issue then as mentioned by an earlier poster the 400mT number does seem like a low ball kitchen sinker from Lance . If we move into under promise and over deliver mode for the next 3 production releases then I won't be complaining too much ....that's the kind of management 'ineffectiveness' I like to see :)

[bobsworth] 28/4/2014 15:40

naphar that point point was not clarified. I will try to find out.

Guess we need to establish what a normal amount is and then add about $2m for late 2013 shipments to see if the total tally's to the $3.5 to $4.5 amount

[naphar] 28/4/2014 15:29

Bobsworth

Thanks for that. On the receivables front, is the $3.5-4.5m in next 60 days an amount above "normal" levels or it it the total due in that time period? Important distinction.

TIA

[phoenixs] 28/4/2014 15:23

so Bobsworth/superg

figures given in rns of 400 mt appear very much on low side?

[bobsworth] 28/4/2014 15:02

Iam also hearing that after re-instating the filters on IO#2 it is now producing around 1.2 mt per day!

+

On the cash front the company does have higher than normal receivables due in the next 60 days totalling $3.5 to $4.5m before returning to normal.

[superg1] 28/4/2014 14:54

Or another way of putting it Joe.

If you know the company and circs it was good news.

If you don't know then I completely agree it looks like worrying news.

Chair gone, CEO gone and CFO with another bod member gone.

One pair UK based and one pair US based.

[superg1] 28/4/2014 14:47

Glad you said it Bob, that's the general message I'm hearing, with io4 being the best of the 3 to 6 bunch.

[bobsworth] 28/4/2014 14:29

Superg
"Not all of Io3 to 6 are affected heavily"
To clarify its Io5 and 3 that will be heavily affected most whereas 4 and 6 not so much.

[superg1] 28/4/2014 14:14

Joe

Look at the share price and lack of progress while they took the helm, those are the circumstances.

Re production.

With io2 under 20k bpd and just io1 they were near 1mt per day. Since that time io2 now has more brine than it can handle.

Going back to the first point 'circumstances'. Io2 had modifications for a reason. I understand the new arrivals removed them, then found the plant clogged up. I'm reassured to know the modifications have been put back in place.

Not all of io3 to 6 are affected heavily. Io5 clearly needs mains power, rather than a generator.

[bocker01] 28/4/2014 14:06

Thank's for that Crosseyed. Much appreciated!

[crosseyed] 28/4/2014 13:42

Hi bocker1,

Here is a good animation of the drilling/fracture stimulation process from Marathon Oil who are active in Texas' Eagle Ford, Oklahoma's Woodford and Montana/S Dakota's Backen, all obtaining hydrocarbons from shale...



The point is that during fracture stimulation (fraccing), huge quantities of water are used, mixed with proppants (usually sand) and small quantities of chemicals to improve the process of opening cracks that are kept open by the proppants thus allowing the hydrocarbons (almost all in gaseous form at the temperatures and pressures prevailing at ~10,000 ft. Fraccing of a single well takes about a week. However, multiple wells are now normally drilled from a single pad with fraccing performed in sections but sequentially amongst serveral wells to reduce time - the fraccing infrastructure is very expensive.

That intensive use of water means that the operator will not be interested in any diversion whilst fraccing is in progress. Once completed and producing, the brine extracted from the hydrocarbons then becomes available to the likes of IOF, though its use for other wells to be fracced in the vicinity would take priority.

c

[joestalin] 28/4/2014 13:12

wiseacre:- " I find it hard to interpret the sudden departure of three members of the board as good news."

Depends on the circumstances, does it not?

[dcgray21] 28/4/2014 12:42

Ammons - my understanding is that IO 1 and 2 running with reasonable levels of efficiency unaffected by the brine issues of 3-6 along with 60mT recycling from IOC should make the 400mT reasonably attainable as a basis for FY14 . That's the logic I'm applying now we enter a period where issues such as weather should have a greatly reduced impact on operations

[wiseacre] 28/4/2014 12:40

Seems to be an element of rose tinted spectacles on this site. Some need a reality check. I find it hard to interpret the sudden departure of three members of the board as good news. Recent announcements suggest huge credibility gap on this company. Grateful to be no longer a shareholder.

[bocker01] 28/4/2014 12:39

Ammons, I got the impression that 400 tons is based on fracking continuing to the year end, no water to speak of and 4 plants lying virtually idle. I also got the impression that fracking continuing so long was a worst case scenario taken by the company by extrapolating the operators current quarter schedule to the year end rather than the operators firm plan. Correct me if I am wrong because frankly it all seems a bit odd to me. I do not know much about fracking but presumably it affects the operators oil exctraction as well as IOF's brine extraction. If so - how long will the operator wish it to continue?

[naphar] 28/4/2014 12:39

Ammons
for sure it remains to be seen. It's not nailed on. But I believe that Lance has kitchen sinked it. If the operator for 3-6 does even more fracking than the current quarter, we will be worse off, as we will be If IO2 were to become impacted a second time around.
On the flip side, IOF have assumed the current situation he Duke continues for the rest of the year. It may not last that long so we could see an improved picture. And even if the schedule continues as is, we could see brine from elsewhere diverted allowing more production.

Not nailed on but all to play for.

[neddo] 28/4/2014 12:35

doesn't know which way to go?

[ammons] 28/4/2014 12:26

I find it surprising that many here mention 400T as though it is something the company can easily achieve. The same was said for 700/1000T was it not? Look what happened to that "conservative" number!! 400T could easily be missed if the operators schedule changes during the last 6 months of the year. 400T is based on the current schedule continuing past the current quarter and into the next 2 quarters.

[phoenixs] 28/4/2014 12:15

superg, thanks for that. At present the words avoid or avoidance seem to be in use, but I will noy use evasion.

[superg1] 28/4/2014 12:04

Pheonix

Just in case. Cover for 'It's fine' should you get the challenge

Definition of FINE

1 obsolete : end, conclusion
2 a compromise of a fictitious suit used as a form of conveyance of lands
3 a sum imposed as punishment for an offense

or if 'they' claim the other type of fine

fine adjective ( 2 being useful)

1: good, acceptable, or satisfactory

2 -used in an ironic way to refer to things that are not good or acceptable

[phoenixs] 28/4/2014 11:25

....or marriage!

[beercapafn] 28/4/2014 11:08

Well this what you could describe as "very" volatile. Up 13% then to below 7%, a 20% spread then back to 0% and all that by 11.00am. Not for widows or orphans.
Well thats a bit harsh, negetive vote for just stating price movment this morning volitle.
Now picked up another one!!!
4 now! I dont understand who or why somone is so upset. ?