Iofina Share Discussion Threads

[trav5] 23/12/2013 11:59

Now I've had time to think over the wkend obviously disappointed with the news and share price over the past 2 weeks. I knew before I invested small resource companies on AIM are probably as risky as it gets and so its has proved. The BOD have not handled expectations well and that is unusual for our American cousins who are normally masters of keeping guidance low and then beating it. I assumed raw iodine was easy to sell perhaps it is not as straightforward as I assumed and does this have anything to do with their competitors?. The new technology is having some teething trouble and perhaps the output is not as high as some had hoped. The bonds do increase the risk but that has always been the case and I am sure everyone invested here is aware bond holders are first in the queue.

On reflection though the reasons I invested remain intact. Patented technology that is working, high barriers to entry, and an end product that is in demand.
In my experience you always get teething problems with new technology as staff adjust to getting the best out of it. The large dramatic fall in revenues in H2 was a nasty surprise and in my opinion the major reason for the fall in share price markets do not like that sort of surprise. Hopefully this shortfall will be filled by the delayed shipments and this would be my biggest concern going forward. The roll out continues, all be it delayed, and I hope the board have factored in weather delays as at this time of year I'm sure they will play a part. The water would be a bonus but was not part of my original investment decision.

As I fairly new investor here I have found some of the animosity on this thread unhelpful. I hope all the bears/shorter's enjoy there fruits but I do not think the continual gloating is necessary. By the same token perhaps some people have been overly optimistic in some of their assumptions. But at the end of the day we all make our own investment decisions and trying to imply losses are the fault others does not wash. Merry Christmas and a Prosperous New Year to all.

[shroder] 23/12/2013 11:58

I came across this document which helps explain the process and in particular, beneficial use as described here.

Beneficial Use:

The amount of water requested must be put to a beneficial use.

The benefit may be to the applicant or any other persons including the general public. Water cannot be wasted in the State of Montana; therefore, the flow rate and volume requested must be the amount needed for the purpose.



That doesn't seem too onerous.

[meadow2] 23/12/2013 11:57

I cannot for the life of me see how a neutral, informative RNS can be interpreted as pointing to panic by the BOD! We have enough to worry about without such comments.

[k1ngkonggb] 23/12/2013 11:55

Ramu,

Maybe only one director and I agree that more could be dipping in their pockets, but £150k from Chris Fay is still a sizeable chunk. Fair to say, that we should get monthly updates. However as they have set the bar with a conservative update, then they might want to leave it a while and release an RNS that might blow our socks off (we should be so lucky!!!).

[killerbudgie] 23/12/2013 11:54

Chris Fay buys 150k shares at 100p. Price falls a further 15p. Ennismore still in short mode aren't they? The share price is going to sit here. If I was on the BoD I would think the 150k was enough for now.

[ramu kumar] 23/12/2013 11:42

K1ngkonggb,

There were just two buys from one Director - not enough to steady the ship!

[k1ngkonggb] 23/12/2013 11:39

Ramu,

What do you think the Directors have been doing in the last week? Check the RNS's!!!!!!

[ramu kumar] 23/12/2013 11:37

The rns about water doesn't point to anything positive or negative except there'll be a meeting end Jan etc.

The BOD appear to be in panic mode and looking for anything remotely positive to rns. My suggestion is a monthly update on sales, production and build progress and further Director buys (NOT options) to steady the ship. Nothing like directors dipping into their own pockets buying significant amounts to restore investor confidence.

C'mon, put your money where your mouth is - after all, we PIs have been buying the past year and it's time all Directors did the same!

[shroder] 23/12/2013 11:01

Water permit

Apologies if some of this has been posted before but I wanted to recap on where we currently stand with the water permit application. This weekend I spent sometime researching the point to point process together with Iofina's official updates. I have also emailed DNRC together with the company for further clarification where they are able to comment.

It's possible both items referred to in Iofinas the Dec 13th update [offtake engineering and beneficial use of the water] are in fact related to the same point, GW.7 beneficial use.

The thinking behind this relates to volume and flow rate as described, this could translate into the 'engineering' part and 'beneficial use' as stated, so basically one area of response only.

There are several forms on DNRC web site but this is the most likely given the type of application and the code (85-2-311) mentioned.



Point GW.7 referes to beneficial use.

GW.7.A Attach explanation why the requested flow rate and volume is the amount needed for each purpose.

Please label attachment GW.7.A Beneficial Use.

Of the various points GW.7 seems relativity minor involving Ionfina only and not third party (i.e objections, adverse shortage ect.)

It's worth remembering also, that on the 9th Oct Iofina had full sign off for the next stage. One would have thought they are at least close with their overall application.

"Iofina received notification from the Montana Department of Natural Resources and Conservation that its application for a permit for beneficial water usage related to the Water Depot project was deemed complete and accurate"

With regard to updates, the company appear to have been very consistent in their news flow throughout the process, no quibbles there. In summary, the response from DNRC for additional information appears to be routine in nature in order to pass it onto the next stage.

These are just my thoughts and notes, so please dyor.


Ionina's official press (RNS) releases below
_________________
13th Dec

Iofina, specialists in the exploration and production of iodine and iodine speciality chemical derivatives, has received from the Montana Department of Natural Resource Conservation ("DNRC") Water Resources Office, the determination of its water rights application. The determination states that the application did not meet certain criteria set out in state code 85-2-311.

The application will require additional information, primarily with respect to offtake engineering and beneficial use of the water. The additional data required is being reviewed with the Company's retained consultants to enable the Company to respond to the DNRC within the 15 days allowed to schedule a follow up meeting to review the application.

The Montana water project remains a non-core project within the Iofina portfolio of businesses.
_________________
9th oct

In addition, on September 30, 2013, Iofina received notification from the Montana Department of Natural Resources and Conservation that its application for a permit for beneficial water usage related to the Water Depot project was deemed complete and accurate. The application has now moved to the final determination phase, which can take up to 120 days. Upon final determination, the project enters a thirty day public notification phase.
__________________
25th sept

Water Project - Non-core

Iofina Resources is at an advanced stage of its Fresh Water Right permitting process for the State of Montana. Iofina has secured strategic locations along the water source and main traffic thorough-ways to market water to support existing production and exploration in proven oil and gas fields such as the Elm Coulee Field, as well as support on-going exploration and drilling throughout nearby counties. All right-of-ways between the proposed pumping station and water depot have been secured. Iofina submitted a detailed engineering study to show the feasibility of this high capacity water delivery system. Iofina has received positive feedback from the State and has actively marketed the water in the area to oil and gas operators, trucking companies, drilling companies, and other local fresh water users.
________________
29th April

Atlantis Water Project Update

Iofina, a specialist in the exploration and production of iodine and specialty chemical iodine derivatives,
is pleased to provide the following update in respect of its Atlantis Water Project.

Based on initial responses from and discussions with the Montana Department of Natural Resource Conservation ("DNRC") Water Resources Office following their receipt of the Company's water right permit application, the Company has elected to amend its water permit application in an effort to expedite its plan to market 10,000 acre-feet per year (c.200,000 barrels per day) of freshwater in eastern Montana.

The possibility of needing to amend the original application was anticipated and envisioned as part of this process and the Company has decided to amend its application to expedite the application process. The Company's revised application is to develop a water depot for 3,800 acre-feet per year based on customers' needs at the current planned location. The Company has secured strategic locations for the first water pumping station and place of sale for its initial terminal and recently submitted an amended application to reflect this. The Company is actively acquiring additional strategically placed sites, based on demand and ease of transportation, for two additional depots that, together with the initial depot, will total over 10,000 acre-feet per year as planned.

After discussing the status of the application with the central Water Resources Office, the Company was informed that the department removed the original application from its website, but has not terminated the original application. The original application remains valid pending receipt of the amended application.

[freshvoice] 23/12/2013 10:23

Are you the prophet who was ramping Vilogyvover the years?

Don't think we will take any notice of your posts. Filtered

[killerbudgie] 23/12/2013 10:19

Jackabite 23 Dec'13 - 10:11 - 13948 of 13951

"Killerbudgie aka superpooh!"

LOL. Nice try, Jack.

Between Netley and Jack we have a new version of Morecambe and Wise here. someone should call the BBC.

[bogg1e] 23/12/2013 10:19

It strikes me that the BoD are damned if they inform investors and then damned if they don't :-)

[captain_kurt] 23/12/2013 10:15

Yes, GDL is looking nasty after 50% falls. Hope you get back your losses through IOF. Certainty alot more to go for in the next 2 months.

[the prophet] 23/12/2013 10:14

I do think IOF may be subject to hostage with this RNS, been better to issue a RNS when there was something substantive to say on the subject, imo.

[jackabite] 23/12/2013 10:13

Off out to do some Xmas shopping, I expect you to try and ramp this as hard as you can in my absence. I will be back later to correct your posts.

Don't waste time replying, just head straight for the ramp!!!

bbs xx

[jackabite] 23/12/2013 10:11

Guys, get real please.

Look at the chart!! is it just going to bounce from here is it? pmsl

I said last week we would see a little consolidation before the next leg down and nothing has changed my mind on this.

The chart looks NASTY and is still in a DOWNTREND!

Killerbudgie aka superpooh!

[captain_kurt] 23/12/2013 10:03

Didn't the bears post the water was dead. I'll dig it out lol

Must of cost you alot when GDL went from 27p to 13p.

[killerbudgie] 23/12/2013 09:54

You wouldn't be deramping now would you Jack?

[jackabite] 23/12/2013 09:52

napolean

it wont cost the bears as much as it did the bulls @ £2.50p or did you not want to mention that?

Faces for places springs to mind!!!!!

[napoleon 14th] 23/12/2013 09:46

IMO the market is only going to rerate IOF on FACTS. IOF can release any number of RNSes. The share price will move when/if the licence is approved, & when Io4 & Io5 producing reliably with confirmed sales of iodine being made to outside customers.

I can live with this as IMO this will happen, particularly Io4 & Io5, with
Io6 after. Short term, only shorters closing will produce a rise in share price IMO.

Bears beware - if you get stubborn, it could cost you a lot of skin!
Patience, & expect nothing much short term imo.

[meadow2] 23/12/2013 09:43

It does what it says on the tin! They will meet to discuss/sort out deficiencies/problems with water application.

[tsmith2] 23/12/2013 09:41

JackabiteYes, you are adding to your short position, please do so

[garfield31] 23/12/2013 09:39

Found the RNS helpful and clearly written. Can understand that some feel let down but to criticise this RNS is rather odd.

[jackabite] 23/12/2013 09:35

digg

The fact it's still being shorted tells you this has further to go....duh!