Iofina Share Discussion Threads

[the librarian] 14/6/2013 14:06

Thanks engelo and Angel.

Still a supply coming from somewhere?

[superg1] 14/6/2013 13:59

There is a name or two that may appear yet, that hasn't surprised some.

[angel of the north] 14/6/2013 13:49

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[superg1] 14/6/2013 13:38

Re tax yes IOF have picked up some losses to carry forward.

The other point that is rarely mentioned is technology credits that they do in the US.

I presume with a patent achieved and an improvement from nasty emissions, for some tech in the US, to zero emissions, then there must be some tax 'brownie points' due somewhere.

I haven't looked deeply enough into technology credits, and the impact that would have if relevant#




It's an area I looked at briefly which intially was for green energy but it has changed.

That's why form time to time I go on about the zero emission tech being so good,and IOF probably becoming a preferred supplier in the US, as it reduces end users carbon footprint, for their own products.

Thus, for some time, I have believed (as heavily hinted at in the presentation),
that US end users will want IOF iodine.

That imo is why IOF can go so aggressive, and grab the domestic market, which currently imports near 6000mt.

[bogg1e] 14/6/2013 13:18

N3tley - awesome. You have saved me a ton of research. Much appreciated.

[bogg1e] 14/6/2013 12:59

Noticed IOF haven't paid tax yet, so don't know what tax rate they are on, but is an important aspect when calculating the bottom line for future (and very taxable) profits.

According to wiki "Federal tax rates on corporate taxable income vary from 15% to 35%".

Do we know the tax rate that will apply to IOF? Also do we know the total of any previous yearly losses than can be offset against future taxable revenue? Thanks.

[ramu kumar] 14/6/2013 12:46

monts, thanks for the info on IG, couldn't get any online but managed a good top up over the phone.

[orslega] 14/6/2013 12:33

as the 8/5/2013 RNS said, part of the $15m funding will assist financing trade receivables...as that side of the business develops, it will become self financing...

The Company intends to use the net proceeds from the issue of the Bond primarily for the accelerated role out of its IOsorb(TM) plants to increase the rate of production growth and to provide additional working capital to finance trade receivables.

[noli] 14/6/2013 12:19

freshvoice, when IOC sell the derivative, the company that buys may have 30 to 60 days to pay ioc. IOC buys from Iofina resources so it may be they have to wait to be paid from IOC before IOC pay Iofina Resources. aimho

[meadow2] 14/6/2013 12:19

freshvoice - Iofina will have to fund the costs of producing their own iodine before receiving payment from their customers. Previously, they would have received payment from their customers before or at about the same time as meeting the suppliers credit deadline. This why they need working capital. Also, if they are selling more, they will be paying more for rising production and need even more working capital; at least until the growing profits overtake the rising costs.

[superg1] 14/6/2013 12:17

Fresh I'm sure they will balance it well to whatever best fits the figures.

They can; let the chem div buy it for $10 form the io plants, the royalty guys would not be happy.

There will be a happy medium in their somewhere.

I'm sure Jeff said they bought in some late last year for $70 per kg to fill an order to get a customer.

Now producing there own on very low opex will change things significantly as we move through 2013 and into 2014. assuming roll out the really signicant change should come in q4 and into 2014

[roboben] 14/6/2013 12:14

freshvoice - The problem is only one of transition from one system to the other.

When buying in you get the Iodine, then you have a period of grace before you have to pay for it (90 days?).

When you produce your own you have to pay the production costs as you produce it. That's the difference.

It's at the point of transition that you get a temporary period when you have been getting credit but are now having to meet costs as you go. Once that first quarter is over the cash flows settle down again.

[the librarian] 14/6/2013 12:08

I suspect that when Ioditech do eventually wake up to the fact that Iofina is producing Iodine, a deal will be struck there. Ioditech only use the 'raw' iodine (no prills) but there must be a conflict of interests there in the markets that each supplys. I am really very interested to see how that one pans out over the next 12 months!

[n3tleylucas] 14/6/2013 12:06

Simple, you are now making it, and selling it via IC, and you allow time to pay, so there is a cashflow 'issue'. You used to have time to pay Chile for raw I. See?

[roboben] 14/6/2013 12:03

Yes, I like the look of QFI too. Enough to have bought some, at any rate.

It's my only other investment.

We may have to be patient here. That's the main drawback compared with IOF in my view. With IOF timescales are clearly defined and progress measurable.

I'm confident the tech is proven now, but newsflow and rates of progress are firmly in the hands of the major companies that QFI are in partnership with.

Huge potential, though.

[freshvoice] 14/6/2013 12:02

Super
I can't see why now they get raw I internally rather than buying it gives them a cash flow problem.
Surely they can buy it internally on at least as good terms as from Chile?

I would have thought working capital demand would be less not more.

[neddo] 14/6/2013 12:02

lubbly jubbly , sg

[superg1] 14/6/2013 11:56

Carrying on the theme of trying to 2nd guess what's coming, this was in the year end results-

There is a heavy hint around new products, which will be unique to IOF due to patents imo. They talk of them being high value, and as they mentioned new products for the electronic chip industry, my guess is that they have some new electronic gases.

Continued sales expansion worldwide has resulted in new markets for Iofina's iodine derivatives. We continue to develop new relationships and strengthen our cooperation with existing customers. R&D efforts remain strong, and the development of new, high-value products put us on a positive path forward.

Currently, we are looking for another record year as we expand markets, new product offerings, especially high value derivatives, and continued growth in our existing products.

Both the addition of the iodine recycling business and much increased production from our mid-stream business in 2013, coupled with the continuing introduction of new products, give confidence for a strong year for Iofina Chemical, and we are expecting another record revenue performance.


Dec presentation

'New applications in the electronic chip
industry '

–Establish new highly profitable niche products COMPLETED
–Increase sales of existing and new products COMPLETED
–Enhance margins COMPLETED

[monts12] 14/6/2013 11:55

SBs
if anyone shopping, IG allowed me to top up today so worth giving them a call

[veldt] 14/6/2013 11:48

I never usually post as I am more of a lurker. I came to IOF through discussion on the ATUK board (a long-term and very patient holder!)and follow this board with interest. I am posting because I agree with Cool Hand Kev (post 473) about QFI. QFI seems to be my only share that has as great potential as IOF. There is of course risk that the technology is not as good as it looks, but it is looking increasingly likely to be used. (Hugely! ie: interest from Saudi Arabia's biggest oil refinery. Let alone Maersk.)
If anyone is looking for a company that has great potential for the next 12 to 18 months then have a look at QFI. I'd be very interested to hear what people think. Right, ramp over and back to lurking!
Veldt.

[superg1] 14/6/2013 11:44

Repeat post as I put it on the wrong thread.

Recycling should have the highest opex imo, followed by io1 and then the very low io2 and big plants to come.

Just thinking on what a trading update might turn out to be like. There are some indicators to help-:

'Record inventory and receivables due to strong iodine chemical sales in 1H 2013'

'Profitability increased substantially as production from the IO#1 and IO#2 in 2013'

new products

About 40 mt it seems from io1 and 2 in April and May.

H1 is historically the best period for iodine sales.

So we'll just have to see what they say, but overall it sounds good. There will be that 2 month credit/debit 'hurdle' now they have stopped buying and have their own supply.


Opex of $15 kg going forward is far better than paying $60 and $70 per kg, maybe more, that they had to do last year.

[bogg1e] 14/6/2013 11:42

If Japan and Chile are experiencing a decline in iodine production (and i believe that these countries operators are aware of IOF), could a tie in/partner ship be possible or a takeover? Someone mentioned a few days back that the companies growth strategy was designed to make it an attractive takeover target. Any thoughts?