Iofina Share Discussion Threads

[engelo] 31/12/2013 11:44

OT rogerbridge: depends which pundits :-) gold upturn forecast by some suthority every month for the last 3 years :-)

Frenchie: second that re AUE. ONly a question of when.

[bobsworth] 31/12/2013 11:35

Yes Happy New Year Everyone

[ansana] 31/12/2013 11:05

Thinking about product and delivery. When I use Ebay I prefer to buy from a UK supplier, reason its quicker to get the item, postage is cheaper and its a lot easier and cheaper to get any problems sorted out quickly. What we have with Iofina is a company in the US being supplied with brine from the US and soon with the commissioning of IO4 and 5 able to provide US markets (in addition to others) with product, a Prilling tower is on the way and like me with the Ebay scenario I suspect US companies will be very pleased to deal with a US Iodine supplier who can offer them favourable prices and consistent quality. With Chile suffering IOF is well placed going into 2014. Low Opex/Capex, patented Tech, 2 plants being added in Q1, IO6 under way and so it goes on. In 2013 Iofina over promised and undelivered, the result of too much enthusiasm and a black swan event that hit them hard. They have regrouped, reset their targets and adapted their strategy as the global situation changes. IMO 2014 will be a very different year for IOF where they will play catch up on 2013 and deliver on their 2014 targets. Am I clutchig at straws? I don't think so are FP yes I think they are. Disclosure I hold shares in this company! plenty of shares and they are coming with me into 2014. Happy New Year everyone

[che7win] 31/12/2013 11:01

Thanks crosseyed/bocker,
Don't think there are any import tariffs on raw iodine, see page 1 below:

[frenchie01680] 31/12/2013 11:00

SuperG,

Re gold, check out Aureus. I owe you for pointing out Iofina sub-20p ages ago.

Frenchie
(The tree hugger from iii Futura days)!

[rogerbridge] 31/12/2013 10:50

jjoshaw, I agree CHIP is an excellent site. It is going to be a very interesting 2013 for the miners, though I am not sure we are at the bottom for gold. Get January out of the way when there is a long term low due, that is according to some pundits that forecast this a couple of years back and then went on to say gold will then head for a long term bull market.

[bocker01] 31/12/2013 10:47

Che7win, we have a cost advantage compared to Chileans in the USA market because we are nearer and we only have US inland costs. It does not really matter whether we sell ex-works or delivered, some one still has to pay for transport / benefit from the saving. Consequently, we have an advantege. What I have not researched but SG will probably be able to answer off the cuff is whether the US applies import tarifs to imported iodine. Obviously, ours is import duty free.

[crosseyed] 31/12/2013 10:45

che7win,

Does anyone know if the customer pays for transport for raw iodine or is that included in the cost price?

If it is of any use, First Columbia, in their analysis of May 2013, include a "Shipping cost" of $0.30/kg in their cost model as a variable cost of extraction.

c

[alfie4048] 31/12/2013 10:39

Just topped up at 96.5p......Thanks shareprophets...lol

[bocker01] 31/12/2013 10:06

Che7win, I agree, they do not understand the business and are resorting to hyperbolic, extremely emotive and unnecessarily colourful language as a substitute. It's so shoddy as to be laughable. The Share Prophets article does the shorter's more harm than good.

[jjoshaw] 31/12/2013 09:57

Superg,you've probably come across it already, but if not the gold miners thread run by Chipperford,thread title CHIP,is an excellent source of info.

[monty panesar] 31/12/2013 09:34

Superg,

Am I right in thinking there is a largish order for US govt in q1 2014?

Tia

[monty panesar] 31/12/2013 09:34

Superg,

Am I right in thinking there is a largish order for US govt in q1 2014?

Tia

[wizard2020] 31/12/2013 09:27

Don't you just love volatility. Having bought in in the low 60's I was able to sell half in the 220's. OK so I bought some back too quickly in the 150's but then managed to top up more in the low 90's in the belief that this is still a good company that effectively turns a waste product into something valuable through patented technology which gives it best in class cost of production. Thank you to all the grown ups on this board and may I wish you a peaceful and prosperous 2014.

[che7win] 31/12/2013 09:19

Superg1,
We have a cost advantage over 'traditional' iodine producers in Chile.

I'm not a mining fan, because miners constantly have to invest in capex in finding, preparing and extracting raw resources.

They are constantly have to invest to produce from a depleting resource. Iofina doesn't have that problem to a large extent, that is done by the O&G companies, our capex is building new plants.
A real benefit to us IMHO, and we have a further advantage if we can take over disused O&G sites.

The Japs also have this advantage, although they are 30-40 years into production and have a slowly sinking island to contend with!

[che7win] 31/12/2013 09:13

Superg/bocker,
I agree with your points, it's amazing it doesn't click with them that we no longer buy in iodine which we were doing last year at $60+.

We now supply ourselves with iodine at around the $20 per kg level, so we have $25 margin after costs on the raw production side and that will improve. With gross profits like that, it gives us a major competitive advantage.

Does anyone know if the customer pays for transport for raw iodine or is that included in the cost price?
I'm wondering if we have a further cost advantage supplying iodine to US companies when we are so close physically to this market as opposed to the Chileans?

[superg1] 31/12/2013 09:10

Just on cost re the minerals guys as an example.


I've been trawling through gold miners for the future, in case the price turns. I ignore all mines not producing anything.

I won't mention which one, but in the figures their gold mining costs are over $1600 per oz. Oooooooooppppps. Some out there are around the $600 mark or less

An interesting world with some good potential in it, and new abbreviations to get used too. (POG, POP and POO, price of gold, platinum, oil :-))

So we need a POI. And the POI is driven by the Chile guys, with many of them with opex of $35 plus, so they have little room for profits, especially if they have a limited market on poor quality iodine, having to sell it more cheaply.

So in theory those guys must be letting down their premium iodine clients.

[bocker01] 31/12/2013 08:55

Its even not just lack of depth (there isn't any) its extremely ill-informed and demonstrates a total lack of "balanced" research by the writer - exposing his agenda clearly.

IMO IOF will have bought very little if any external iodine in Q2 because of its stock pile brought forward to cover itself in case of own-production delays and the because of the significant own-production contribution. In short, raw materials will have had nil cash cost in H2 (absolutely FAB). Therefore a cash saving including building wip for the contract that has moved only one month from December to January (and caused (a) the profits warning and (b) the rediculous resulting share price over reaction) of around USD4m.

IOF is doing pretty good on cash. Its making its own raw materials at one third of what they previously cost.

[superg1] 31/12/2013 08:54

Che

The big difference in the article is research for each share.

For others they have had a bad view on I have been impressed by the detailed research. For IOF they haven't done any and are working off IOF news.

They seem to have completely ignored Chile iodine.

SQM quote Algorta as the growing supplier. Why don't those guys mention Algorta and their costs, which is available on the web.

The production figures and costs/profits don't match Algorta's production level forecast for 2013 and opex is clearly $35 plus

I suggest they read the ioditech last news release re iodine pricing.

I understand Algorta have been all over the place on pricing.

Back in mid 2012, I heard Algorta were producing poor quality iodine due to clays in their caliche.

Then Sept 13 ioditech reported this-:

'In a new twist to the Chilean iodine market, some material currently being offered by a few Chilean mines is below traditional quality standards, and the sale price reflects this lower quality. This type of material is deemed unacceptable for use in complex products made by some manufacturers. Prices for this lower grade iodine are considerably less expensive and are a real benefit to those companies that can use it.'

So probably Algorta once more.

For GBO, Cupid, and GDG they went to great lengths getting all the details together with lengthy reports, including competition detail

For IOF they do nothing at all in relation to the iodine market and suppliers. It's just waffle trying to scare investors.

Perhaps they have heard about the slipped order, and the potential size of it for Q1, which has resulted in a bit of panic.

Who knows, but the obvious point is, they haven't put in any effort at all, because if they did, it would paint a different picture, which doesn't support their goal.



On and check out the Sirocco price pots link up with Canada lithium. The trend is back in place, it's heading one way.

I've even found a thread now to discuss that share with investors. They don't think much of it and one raises a good point. It's a general point I will mention here.

All those small/nil cash generation shares are to face a continuing tough time. Just like the Chile iodine mines, they all threw cash at exploration and expansion while prices rose, very few kept an eye on cost. Many mines now have production costs higher than actual or forecast opex, for various commodities. They have built up debts, with some nowhere near actual production. More financial backing is out of the question, so a few will merge.

In siroccos case it's purely down to Sir having the bank balance and Canada Lithium having the resource. That is a common belief with Sirocco investors. However the Sirocco share price continues to slide as before.

[iof multibagger] 31/12/2013 08:50

bIG BOUNCE, RECORD PRODUCTION, PATENTED TECHNOLOGY, YOU ONLY HAVE TO LOOK AT THE
WEBSITE PICTURES AND SEE THE SORPHISTICATED IO3 PLANT NOWONDER THEY HAVE BEEN
DELAYED. GOING FORWARD NOW WITH RECORD PRODUCTION MORE PLANTS ROLLING OUT WITH
MORE PRODUCTION MORE REVENUES TO FOLLOW..

£3 by feb if the water permit is granted otherwise £2 by feb

[che7win] 31/12/2013 08:43

Bocker,
I agree, the article doesn't look in depth into the business unfortunately.

[bocker01] 31/12/2013 08:39

Cash was always going to come as the shorters weapon of last resort. The article shows massive ignorance and desperation in equal measure. IOF are now covering cash costs of producing from the new units and saving a further 750000 usd per month on bought in iodine - all in comparison to half one this year. In short the company is now strongly cash generative at the operating level.

[che7win] 31/12/2013 08:12

Only back to where Dr Fay was buying recently.

[che7win] 31/12/2013 08:03

Yes, we could see another fast rise this morning, a short squeeze would be nice.

[hurricane.] 31/12/2013 07:58

Ennismore need sellers to close. As a fund increases, the squeeze continues