Iofina Share Discussion Threads

[madchick] 17/9/2014 07:47

Would you rather lend 40 million to RB or to IOF? Rhetorical question.

[che7win] 17/9/2014 07:42

Looks like lithium has halved since 2011, I think the Tesla giga factory excitement will quickly wear off.

There is a lot of lithium production coming onstream, I wonder how that affects SQM as well as RB.

[che7win] 17/9/2014 07:33

Superg,
New thread needed after 18th wasn't it?

[superg1] 17/9/2014 07:00

RB energy. The debt

Post the recent cash problem at RB, and pre the announcements in the last 2 days, a person that follows RB, posted these details on their debt situation.

Post date 8th August

As of May 31, 2014: TOTAL DEBTS OWED: $223 million. From now until May, 2015, RBI is under obligation to repay $97 million in debts. Some debts with interest rate as high as compound 15.0%. REPAYMENT REQUIRED: (1) Less than One Year $97 million (2) 1-3 Years $77 million and (3) 4-5 Years $49 million. Payments due on contractual obligations for the next five years are outlined in the table below. Total in $’000 $ $ $ $ $ Debt - principal repayments 74,000 16,850 57,150 - - May 2013 convertible debentures 27,496 - - 27,496 - July 2013 convertible debentures 17,519 - - 17,519 - Finance lease obligations 18,424 7,478 8,420 2,526 - Bank term loans 16,579 4,919 9,838 1,822 - Export credit facilities 27,307 26,334 973 - Purchase obligations 10,150 9,900 200 50 - Cash advance from customer 5,892 5,892 - - - Note payable 458 458 - - - Trade & other payables 25,154 25,154 - Total contractual obligations 222,979 96,985 76,581 49,413


I don't know how accurate it is but no one challenged it. I know I saw payments of 11.8 mill needed in Dec 14 and every 6 months as capital repayments on just one part, there were just too many variations of debentures and loans to take in.

In the news recently they hope to raise $78 mill to $88 mill, half of which relies on one investor. They state the cash needed includes use for the below, but then that seems to only cover debt over the next few months

The Company intends to utilize the proceeds from the Offering for: (i) settlement of existing debentures in the approximate principal amount of C$18 million; (ii) repayment of recent operational short-term loans and advances and to pay outstanding trade payables; (iii) satisfying the scheduled senior bank credit facility principal repayments for the balance of 2014


RB need exemption from share holder approval as the dilution is well beyond the level of normal fund raising.

Yesterday they announced details about a Toronto stock exchange review

'As disclosed in the September 15, 2014 press release, when the Exemption is relied on, the TSX automatically initiates a review of the Company to ensure that it is in compliance with all of the TSX continued listing requirements. The TSX announced such a review of the Company today'

'The review will be based on the Company's financial condition'

RB currently forecast opex of $3200 per tonne on a max production rate of 20,000 mt per year. They are way off getting anywhere near that, and have had issues with achieving battery grade lithium.

Personally with all the info above, I struggle to see how they will survive, they are currently producing at a level of over 2000mt per year, but keep hitting problems and failed to mention how production was going in either release. Winters are brutal where they are and that hit that badly last year.

Hopefully the details above explain why I sat RB energy are in serious trouble, and why they may look for iodine buyers of their inventory at cut price rates.

The situation looks severe and even if they could continue needs perfect execution of the business plan. That is something the same team hasn't achieved at Sirocco for many years. That excludes the Brazilian potash, and African gold, that they simply stopped talking about, with no announcements. ???

So make your own mind up about RB and their circs.

[superg1] 16/9/2014 22:19

Monty

They suspended the ALP which gave them more production but at a much higher costs. They have been heap leaching iodine but don't expect to get beyond 1000mt per year.

With the ALP and not yet introduced ball mill they hoped to get beyond 2000mt. I totally agree that they are unlikely ever to return to ALP production.

Looking at their recent news they are in very serious financial difficulties.

On the Lithium side they talk of $3200 costs forecast per tonne but that will be set against much higher production rates as the eventual aim is 20,000mt per year.

They are currently doing 40 to 50mt of lithium per week so no progress as Tewoo wanted 55mt per week plus as evidence of good grades. They need 8 times that per week to hit the 20,000 per year. No way will they be profitable on lithium on current rates v fixed costs.

That lead investor must be nuts if they are going to throw $40m plus at it. A large amount of any funds to be raised are to pay off loans and other related debts. They had great difficulty keeping the mine going last winter, they will probably get the same this year.

I think the odds of survival of the company are slim, cash thrown at it or not.

[cyberbub] 16/9/2014 21:07

Agreed Monty, and seeing how much the low-priced Indian imports have risen in the last few months, surely RB can't have that much left?

[monty panesar] 16/9/2014 20:30

Just been catching up on posts. On the subject of RB- down 25% today-there remains zero chance of them returning to iodine production in the coming years. They stopped iodine production last yearand nailed their flag to their lithium project.Any $ they might have will go towards lithium. Once their stock gets cleared it will not come back into iodine production any time soon.

[rikivilla] 16/9/2014 19:34

Not a holder here anymore but just looked in to see what is happening. Can't believe muppets still follow what Superg says on here. He has played you all for so long now.Did you not see how he started to talk this down about 10 days ago and probably sold you all a few on the way down. Look at the pattern guys and as I learnt last year DYOR.

[superg1] 16/9/2014 19:17

No news isn't so bad in this market climate, good or bad the details would just get swallowed up.

More RB energy news today and 20% down, as the dilution they need far exceeds the rules they had to approach the TSX for permission to exclude a shareholder vote.

The TSX review the company financial and circumstances situation before they say anything, so that is underway.

[engelo] 16/9/2014 18:03

Someone asked above are we going to make 40 Mt in August? Think the answer's simple. We did it in May and various factors (No of plants, I02, I04, I05, I06, reduced fracking) have improved since then.

[roboben] 16/9/2014 17:30

Well done Fest. I'm in for a while, I think, unless the markets turn really ugly. Mark you, I didn't get in at your price! Just trying to regain some of what I'm currently down here.

[naphar] 16/9/2014 17:10

napolean, well said

[1madmarky] 16/9/2014 17:04

Well done Fest. I was too paralysed by fear plus a healthy distrust of Internet type companies

[napoleon 14th] 16/9/2014 16:56

By the way, anyone had a thought for Lance himself, eh?

He was out of action for six months on serious health issues
& quite possibly came back before he was meant to when he saw what was happening.
Possible curtailment of convalescence with doctors trying to restrain him.

So why should he bust a gut which has, we hope, just been mended, so to speak?
For a relapse? We know what happened last time.....

[superg1] 16/9/2014 16:25

Cheers spike good point.

Funny old market, IOF down in recent days and so is the rest of the market. Surely they are not all waiting for our monthly update.

My watch list has been a sea of red this week.

[napoleon 14th] 16/9/2014 16:17

SRT, a company in the same mould as IOF tho' in a different business, have a chairman called Simon Tucker. He goes direct on the BB, which clears up any doubts, gossip, speculation & disinformation;

Perhaps Lance should do likewise.
Save £££; on RNSs too?

[festario] 16/9/2014 15:30

Roboben. (Off topic), I saw a cash creating company in BLNX, with no debt and a share price that did not make sense given the vast cash reserves.I broke the bank to buy 360,000 shares around the 31p level.... and sold two thirds at 43p. The other 120k I still hold. It could, and should go much higher yet.But I wanted a profit for a change, (before the wife spotted what I had done!)

[captain_kurt] 16/9/2014 15:23

RB Energy down 25% at the start of trading

[spike_1] 16/9/2014 15:22

Hi sg re your: It sound likes there is plenty of brine at all of them.

I wouldn't totally agree. This says to me there is / was a shortage at IO5
The plant is running very well, taking all available brine at the site.

Best wishes - Mike

[angel of the north] 16/9/2014 14:45

As the logical date for the update in production is Thursday 18th I have taken an opportunity to add a few (Just in case the RNS is released a day early tomorrow)- Happy hunting all.

[roboben] 16/9/2014 14:41

Fest - So you're the character knocking the Blnx share price down!

Thanks a lot, mate!! ;)

[superg1] 16/9/2014 14:18

Yes good question

Io5 31 days, but it would need a build up to full speed, but then we don't know what full speed is.

io6 20 odd days, same issue as above.

io2 SWD upgrade for mid month, no idea how long it got going for post mid month or if the upgrade was completed on schedule.

io4 no idea as a booster pump was to be installed mid month.

It sound likes there is plenty of brine at all of them, but we don't know how much of it they got to process.

Once they are all going 1.7mt per day seems to be a number that can be exceeded.