Iofina Share Discussion Threads

[superg1] 20/11/2014 16:06

The SQM conference call has been and gone.

The odd wasted daft question (where do they get some analysts).

The analysts would do well to read here for the missing bits to vague comments made by SQM.

Interestingly SQM touched on the point of a few selling down iodine inventories. Unfortunately the transmission wasn't clear but they seemed to be going along the lines of tightening of supplies but the actual timeline unknown. Hopefully with the usual transcript later we can see what the content was.

They estimate getting back to over 30% of the market in 2 to 3 years time, but that depends on how others fair short term, in particular RB. They declared they have no interest in acquiring either RB asset at this time.

More on that later once the transcript appears

[ridicule] 20/11/2014 15:52

looks like the myriad of small AT trades post 15:00 is a panicing shorter trying to drive the price down.

[angel of the north] 20/11/2014 15:29

We get the odd spot of cold weather in Newcastle too - but not enough to make the girls down the Bigg Market put any clothes on though!

[sandbag] 20/11/2014 15:17

Whilst I am certain all sensitive pipework will be trace heated, lagged and clad and the present cold spell is nowhere near IOF's operations I would like to point out that many years ago I attempted to drive from Houston on the (warm)Gulf of Mexico to Odessa / Midland in west Texas only to be stopped by a traffic officer who turned me round due to 12'snow drifts near Waco. They do get the odd spot of unusual weather in the southern U.S.

[superg1] 20/11/2014 14:40

On the weather it's heading north.

I heard on UK news this morning that it was even below freezing in Hawaii.

If you take the media at face value it sounds drastic. But if you look, it did go below freezing point in Hawaii, but on Mount Mauna Kea which is 14000 feet above sea level.

As the Chair of OBT said. There is more chance of Ebola hitting Clerkenwell road in London, than it getting to East Africa. The transport and trade links between Europe and West Africa are numerous, but are virtually non-existent re east Africa. London is also closer.

[superg1] 20/11/2014 14:22

I don't recall saying bad weather is good.

The point was raised by Bogg1e. The bad weather affected start ups for io2 and other plants that started up during cold periods.

IOF reported continued good performance in spite of the cold weather.

I had a discussion on the optimum temp. at one meeting. Produced water in the area comes up hot and over 40C. The optimum temp was said to be 40C.

The Oklahoma brine pipeline system is underground so it's little affected by low temps. Obviously there may be some heat loss when it enters the plant, but they would surely insulate any pipework 'winterising' the plants.

Brine temps lower than 40C would affect optimum yields. That's about it.

Obviously severe weather can cause power outages which disrupts brine supply.

EG from an rns

'Iofina says production volumes at IO2 remain consistent. Despite extremely cold weather in the area downtime in December and January has been limited as a result of appropriate planning and proper execution by the operations teams.'

So it's not a big issue for plants that are running, but has caused problems for those plants trying to come on line during a cold period.

For reference Chesapeake have details for samples of produced water. With the range they recorded below.

'Temperature of produced water 30-70 degrees Celsius'

[battery] 20/11/2014 14:19

Oklahoma is a very southerly state, just north of Texas (had to look it up to confirm).Weather in OK. City today, 15'C

[angel of the north] 20/11/2014 14:16

The weather in N.E. U.S. is a million to one unusual occurrence - the cold air coming down from the North is met by warm air on the lakes - it rises and freezes producing this very rare event. The present day weather in that region is a 'once in a lifetime' event.

[che7win] 20/11/2014 14:14

Simmy, I was hoping ACT would say some more on the weather but he didn't persue it.Right now, in the US snow is on the eastern seaboard (it's not anywhere near IOF), it's eastwards I.e. Moisture lifts over the Great Lakes and descends on Eastern seaboard.Had to chuckle this morning.

[simmy1699] 20/11/2014 14:01

SuperYou and I haven't finished a discussion a while back about how bad weather affects iofina operations. http://m.bbc.co.uk/news/world-us-canada-30124729 - Another 3ft (1m) of snow is expected to hit parts of north-eastern US after a massive snowstorm left at least seven dead in New York state on Wednesday.You said that bad weather is good for IOF but I don't see how that's possible. Keeping the brine from freezing and accessibility issues are obstacles. Any thoughts?

[battery] 20/11/2014 12:55

IG showing 2% short now.Could be an expensive gamble

[rogerbridge] 20/11/2014 12:00

I think that we will also have PI's returning as the share price increases.

[superg1] 20/11/2014 12:00

SQM

Some outstanding matters of significance.

CORFO own the leases in the Salar de Atacama, they were farmed out to SQM. CORFO claim non payment and are in a court process for payment and ending their lease contract with SQM. The case is ongoing.

Here is what SQM say about that site on their website

Salar brines are located in the nucleus of the Salar de Atacama. They contain the greatest lithium and potassium concentrations ever known, in addition to considerable sulphate and boron concentrations. From this natural resource lithium carbonate, potassium chloride, potassium sulphate, boric acid and magnesium chloride are produced.

A comment yesterday post SQM results.

EuroAmerica said in his report that the results were above projections, but said the company remains vulnerable to the continued increased competition in the market and demand for Iodine CORFO (which, in the worst case, could Remove the granting of the Salar de Atacama).


On the pipeline. SQM have been contesting and appealed the decision below. Copiapo is Cosayach. The pipeline was to go to Negreiros near SQM. That's where Cosayach were extracting water illegally.


The Environmental Court of Santiago decided to reject the claim of SQM against the Commission for Environmental Assessment (CEA) of Tarapaca, for approval of the project "Mapping water Chinquiquiray" owned by Sociedad Contractual Minera Copiapó.

The project -located in Huara commune, about 58 km from Iquique entered the System of Environmental Impact Assessment (SEIA) on April 24, 2012, by an Environmental Impact Statement (EIS), receiving its resolution Rating Environmental (RCA) favorable December 13, 2012

[y1phr] 20/11/2014 11:34

They won't be far away..

[woolybanana] 20/11/2014 11:25

Seems to be sizzling away nicely. Long may it last.
Any institutions buying in yet? That will be the sign for a big rise.

[pwcarnall] 20/11/2014 10:45

yes and currently a lot keener on taking size.

[rhwillcoll] 20/11/2014 10:29

Now up 6.1% and in auction. Not much stock available by the looks of it.

[captain_kurt] 20/11/2014 10:25

Just gone into auction. L2 looking very healthy

[che7win] 20/11/2014 09:33

Selling dried up because the price was looking silly.

There were some distressed sellers forced out, you could see reluctant sellers on each down wave.

Then, against that you had IOF as a company never being in a healthier state, balance sheet stuffed full of cash and growing, plants operating on track to year end targets and a water application granted and waiting for the next stage shortly.

A lot of investors waiting for the turn, I guess we have a few forced buyers getting in at a cheap price before the share gets carried away.

Just my take, seen it all before.

Water is worth half the market cap on its own, its just not being believed or built in at this price.

We have only one week, then we're into December, water news is creeping up fast.
Maybe this time we get the explosive upturn we all initially expected with the backdrop of a healthier stock market.

[rogerbridge] 20/11/2014 09:30

I know cyberbub, I have no new funds available until next week, but I have taken the opportunity to add over these last few weeks. What an opportunity.

[y1phr] 20/11/2014 09:26

You might be ok.

[cyberbub] 20/11/2014 09:22

Nice rise... I need it to stay below 50p until tomorrow please... as I have scheduled a bed-and-ISA for 60K shares for me and my wife... so stop buying, everyone!! :-) LOL

[tim3416] 20/11/2014 09:15

Some nice buys this morning...

[superg1] 20/11/2014 09:14

Che

It's rumoured the recent seller has been absent for a few days so perhaps they are done.

[superg1] 20/11/2014 09:13

I say SQM will be after Cosayach for nitratess and potash for a good reason. The other aspect would be for a seawater pipeline that Cosayach have developed. It's in a different area but Cosayach had applied for an overland pipeline to transfer it to the Pozo Almonte area, which is where SQM are. SQM have been challenging that application in the courts.

Cosayach don't have any water rights for the assets near SQM so on that front they are of no use to SQM. SQM are however at risk re any suspension of water rights due to drought. Seawater EIA applications take a long time and SQM don't have one in action for the area as they planned to move to Pampa Blanca.

In another recent case Cosayach were mining on SQM leases. But Cosayach claimed SQM has falsely registered the leases. Cosayach won that case.