Iofina Share Discussion Threads

[nearlyman] 05/8/2013 09:10

Just completed a small 'bed and isa' as you say Malachey on a half penny turn with commission on the sell side only. This seems to be the norm. It could be invaluable in the future though.

[skasher094] 05/8/2013 09:06

was going to do share transfer today into isa investment account
i have already set up with hsbc!
how many people are aware its a voluntary option and hsbc for
one have not made it allowable on their accounts.
haven't seen any forward publicity about this,
Anyone else having same problem with other financial institutions?
will have to check with my halifax account whether will have same problem
with them!

[malachey] 05/8/2013 08:29

interesting to watch the 'bed and isa' trades going through on L2. Seems to be a half penny turn.

[bobsworth] 05/8/2013 08:29

Bag all your comments on the add on costs of leases, lawyers, staff etc are all very valid and need to be accounted for.

On shipping costs, yes lets just agree to differ on that one as could be argued either way.

[superg1] 05/8/2013 08:28

First C said the Mid states presentation should be out today, that's the partner for io2 and no doubt some of io3 to 6.

They also have a live web cast tomorrow, so if anyone wants to listen to what they are doing, to understand OK...........

[superg1] 05/8/2013 08:21

Bag did comment on leases, lawyers, staff etc etc, and that is a good point.

Brine leases are life long, so when it's done it's done. I may be wrong but I think there is a 5 year window to actually produce something, if you do produce it's yours for life. Some landowners have been stuck in iochem (Toyota)deals they don't like for over 30 years. So brine leases are more or less a one off.

O and G leases (deep rights) are like business leases here, when they expire the owner has the first option to renew them, and it has it be at a fair market rate. Top leasing which we have mentioned here is when a n other registers and interest to acquire a lease when it expires, if the prior owner releases it. The top lease effectively gives the top leasing party, first refusal.


However with the mention of sales staff etc etc. The opex for plants it's based on that. The plants produce and sell to the chem div.

We haven;t seen chem div figures yet, but the presentations in the past have suggested record sales, new products and increased product sales. Also new niche products being supplied by iof.

2011 to 2012 were transition years in terms of the price moves too. An iof contract has a gap. IOF honoured some old contract prices last year (it's in an rns. So this year should see a move to the market rate on sales. Then as we move into next year the margins should start to grow as they increase production and bring opex down.

I presume at some point they may abandon the recycling side of thing as they may not need it, but it fixes a gap short term.

I'm not suggesting that will mean big revenues this year, I don't think anyone is, but I think we will see gains, and progress for H1 with the chem div doing well.

[rhwillcol] 05/8/2013 08:18

Just done the ISA for me and the wife. Halifax very helpful as always.

[iof multibagger] 05/8/2013 08:16

Great time to buy plenty room for profit and a good entry point

[bobsworth] 05/8/2013 08:08

Fingers crossed we will get news very soon on the CEO appointment.

[the librarian] 05/8/2013 07:58

I did read somewhere that the Arysta export rate was about $25 and the % are set on that, which makes sense because you can't predict price volatility and ain't going to set it at $55!

Still trying to work out what quantity IOC actually use, with Termo, anticline, recycling and IO1 contributing about 220mt (thanks noli), plus what they bought at the beginning of the year it's hard to get a handle on.

[n3tleylucas] 05/8/2013 06:37

I measure progress against noli's plant/production roll-out chart, and my own estimates.

The interesting thing is (noli missed by a mile obviously, but) ... even my own targets (dismissed by all here as de-ramping rubbish) are proving to be massively over optimistic. Funny eh ... ?

[naphar] 04/8/2013 23:39

Not just numbers Upp. I'd like a forecast quarterly mt output projection that we can use to judge matters. A realistic, even underplayed forecast will do me fine, but something specific we can measure progress against.

[uppompeii] 04/8/2013 23:23

And the numbers from the company...

[hitsha3] 04/8/2013 23:13

Good one SG, thanks for that. we need two more things , one is CEO, other is water and rest will sort it self out.

[engelo] 04/8/2013 22:59

Thanks SG for yet another concentrated dose of quality info. These ppms are mind blowing, and the potential figs for 2014 are going off the scale. Btw how you did that in 30 mins I do not know :-)

Interesting week ahead: the great ISA iodine rush only a few hours away....going to be like the Wild West at 8 am imo.

Hope that the instis have read the last 2 RNSs a bit more carefully too. The news on water and patent haven't really registered yet imo.

Might be news on CEO soon too :-)

[n3tleylucas] 04/8/2013 22:48

Aye, next you'll be saying "2013 profits don't matter", then "2014 profits don't matter" ... whilst all the time ... the beat(down) goes on.

... to 75p, and beyond.

[the librarian] 04/8/2013 22:42

I think you got your point across there superg :-) You are right of course, the focus should not be on bpd but the ppm's and hopefully they will be giving us the numbers in September. There is no need to hide them now with the patent all settled.

[superg1] 04/8/2013 21:57

In prior announcements IOF have said they have sites of 450mt plus (30 k unit) and abnormally high sites a lot more. Then they have just said this-:


'the Board is pleased to announce the discovery of multiple sites with extremely high iodine concentrations'

The this-:

'The Company is developing a unique Hydrosorb processing unit to match the characteristics of these sites. This plant will be able to produce significant volumes of iodine without the expense of processing large water volumes'


With the Miss play boom I understand the picture just gets better, and in fact, the first paragraph is based on old data.

They have said, multiple sites of extremely high iodine concentrations, they mean it.

Extremely high, is not a 300ppm average. OK is known for that, hence their 450mt plus early comment. That's what a 30k plant can do on 300ppm.

I've been going on about that key point re high ppm for many months. That's why they changed io3 from Texas and plan for an OK roll out in a concentrated area.

40k bpd total at 500ppm is all you need to get 1000mt.

iof have found well of 1000 plus, 2600, and now mention multiple sites. These will range from mid to high hundreds to 1000 plus, 2600 and higher to come.

High ppm normally means lower bpd, but the 1000 plus was said to be 3 to 4k bpd.

It was only one line, but they have now admitted what they have in the area.

[superg1] 04/8/2013 21:43

On the bpd v ppm figures.

They have said they plan to have 50k units in the future. That means 50k is going down a well somewhere.

I ma also aware 100k bpd is going down an swd somewhere in OK. Maybe that is where the hydrosorb plant may go

It's worth mentioning those figures again in a shorter post-:

1000mt production would need -:

300ppm = 70k bpd being processed

400ppm = 50k bpd ..............

500ppm = 40k bpd


io2 to 6 are capable of processing 150k bpd. On those figures the combined plants would need to process 27% to 46% of their capacity.

io2 in May was running at 62%, and we have that as bad. They have said new brine will arrive in the coming months. What they didn't say in that rns is that io2 started getting extra brine in July.

You can see why they expect to become the largest producer in the US when the new plants are running.

If they get near capacity on bpd, then they will be on a lot more production.

How can they sell bulk iodine and find a customer, easy really just cut the price, if they are producing at those rates. Or as Jeff says, US end users want US produced iodine.

[baguette] 04/8/2013 21:16

Bobs - sorry did not want to get into a protracted discussion but I assumed in the early stages of a new sales relationship the negotiation regarding shipping would tip the way of the seller rather than buyer. You may well disagree. Cheers

[bobsworth] 04/8/2013 20:34

Baguette
Some companies I know actually make a small profit on shipping by calling it handling and shipping so adding to their overall margins.
Please explain how the margin (profits) can be affected by shipping costs when these shipping costs are always passed onto the buyer with nil impact on their margins.
TIA

[diggulden] 04/8/2013 15:49

From a learning experience, quite looking forward to tomorrow, just to see how the ISA rules changing affect AIM stocks, if at all. Will certainly be interesting to watch volume.

[iof multibagger] 04/8/2013 15:48

£4 end of year..