Iofina Share Discussion Threads

[diggulden] 29/1/2014 08:21

Oldnotbold,

'Pugugly is right. Whether you are a bull or a bear on this stock, this is a shamefully poor RNS. Have a look at other trading statements if you want to see what this is missing: '

One major difference then, this is an operational update, not a trading statement. Do keep up.

[superg1] 29/1/2014 08:19

Soggy

I always look for "...is pleased to announce"

Glad you mentioned that one. I see that line for just about every rns where the author is fund raising and big dilution is in play.

Tbh I hadn't noticed that in this rns, but would be glad to see anyone company drop that stupid line in all news.

I know of one company that I watch that may be about to fund raise soon, so I'll watch for the 'pleased to announce bit' and post it here should it happen.

[tsmith2] 29/1/2014 08:17

Numis would I assume doing opening brief..

[superg1] 29/1/2014 08:13

Oldnotbold

- A comment on 2013 sales, profits, and cash in the bank.

The details of that were in a recent release, the full details appear in year end reports

- A comment on water.

Details of that in a recent release, water meeting tomorrow with the water bureau

- A comment on iodine pricing.

We all know it, and fully covered in the Numis note, which has had the occasional mention recently.

- Also volume levels at year end close, and expected volume levels for the existing and new plants once expected teething problems are sorted out.

Mentioned in earlier releases 17k bpd to 40k bpd for io3 to 6, with anticipated increases as more wells are drilled.

As we can see there is a lot of drilling going on as mentioned in todays rns.

[soggy] 29/1/2014 08:03

Good update, and I'm glad to hear the news in it. But I'm a bit surprised at the muted tone of it. I always look for "...is pleased to announce" in the first line and if it's not there I expect bad news.

Why was it not there? And why was the tone of the whole thing so muted when it certainly seems to me to be a good news RNS?

..maybe me just looking a gift horse in the proverbial....

[oldnotbold] 29/1/2014 08:03

Pugugly is right. Whether you are a bull or a bear on this stock, this is a shamefully poor RNS. Have a look at other trading statements if you want to see what this is missing:
- A comment on 2013 sales, profits, and cash in the bank.
- A comment on water.
- A comment on iodine pricing.
- Also volume levels at year end close, and expected volume levels for the existing and new plants once expected teething problems are sorted out.

The Investor Relations team should be fired. This may well be a sensible story but one can't work it out from this terrible RNS.

[che7win] 29/1/2014 08:03

Superg,
Yes, exactly, investors don't realise that it all settles down, it won't be an issue in the future.

[superg1] 29/1/2014 08:01

dcgray21
29 Jan'14 - 07:22 - 15456 of 15484 0 0(premium)


SG1 - would you anticipate that leases signed with operators have commitments to volumes of brine they are expected to provide IOF ?


DC

This isn't supply it's IOF stick plants at salt water disposal sites, which typically in the area, seem to have capacities of around 50-60k bpd. Rug did some work on that.

So the oil companies would want to fully utilise any SWD to it's capacity, due to efficiencies.

The Mississippi lime play is a boom in it's early stages, and is quoted as the highest water ration play in the US.

[knackers] 29/1/2014 08:00

Much more like it. 1. Set realistic expectations and 2. Go deliver!

Good job!

[bocker01] 29/1/2014 07:56

External sales are confirmed. The business model is now fully validated. On and up!

[noli] 29/1/2014 07:55

The key imho dig is they must have an inventory now as they are still supplying IOC and selleing external raw iodine.

[tsmith2] 29/1/2014 07:54

Some dirs to follow...

[diggulden] 29/1/2014 07:52

That will do fine thank you.

We have started selling raw Iodine externally, which is a massive plus, as many feared we would not be able to do this.

IO2 remains on track, previous RNS indications suggested max output at nearly 1MT per day.

IO3 is producing although some brine issues, IO2 was the same in the start up, the operator will need to work with us to optimise things, exactly the same as IO2, so no worries here for me.

Market sentiment was shot to pieces on this share, pricing for failure, this important operation update shows things are on track, for me, that is all I needed to hear.

[microcline] 29/1/2014 07:52

With more plants coming on stream reduced brine flows/maintenance outages etc at one or two sites will have an ever decreasing negative effect on the total annual run rate. Anyway more fracking requires more water.

[jointer13] 29/1/2014 07:51

well put monts.

[che7win] 29/1/2014 07:51

Right, it's important to clear some further things up, before misinformation abounds. I have been looking at the reliability of brine supply as it happens.

1. On brine supply - WE ARE IN A BOOM AREA FOR FRACKING FOR THE O&G companies.

2. We provide free money to the O&G companies for a waste product, that is their incentive.

3. The brine supply will become more consistent over time, in another 12-18 months there won't be a problem. THIS IS NOT MY OPINION.

4. The more plants we have operating, the less this issue becomes.

5. You have to work hard with operator's to be on the same page, this is an area IOF is working hard now to address, it is a learning curve but the problem will diminish.

6. More fracking = more supply.


I'm not afraid to say the company has messed up on maintenance of the IO#2 plant operation last year (and they did), because that means there are big operational efficiencies to gain.
I'm excited because I know there are a lot of operational efficiencies the company can extract from the plant operations. When that happens to IO2, you can wave goodbye to IO2 producing 1MT a day, it will be a lot, lot higher.

[jointer13] 29/1/2014 07:46

we had the same with io2 re brine input due to drilling,but it soon got sorted.
just the usual teething probs.

"Production volumes at IO#2 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."
we seem to have it nailed on now

to those who said we will never sell iodine...read the rns.

we are selling iodine...very positive.

[someuwin] 29/1/2014 07:44

"on plan" ?

[masurenguy] 29/1/2014 07:42

I'm certainly not a bear but a potential future bull when I finally take an entry position here. On the face of it the update looks positive except that I would still be a bit wary of the following comment.

"Iodine production levels at IO#3 are coming in as expected when the volume of brine received from the Operator is as anticipated. However incoming brine volumes have been affected recently due to the Operator's significant fracking and drilling activity in the area, which is affecting overall iodine production levels. The Group is working with the operator to minimise brine volume inconsistencies amidst the ongoing fracking activity and looks forward to updating the market on progress in this respect. The increased drilling is a positive indication of the operator's view to continue expansion and the Company expects newly drilled wells to be tied into existing and planned IOSorb(TM) locations potentially increasing brine volumes."

This indicates that the current production volumes have been impacted by Operators activity and indicates that volumes will increase if and when newly drilled wells come on stream. When they refere to "production on plan" does anyone here actually know what that planned volume is in order to clearly validate that particular claim with actual figures!

[molatovkid] 29/1/2014 07:41

There will always be ebbs and flows - but what really important is the last few words...

"We look forward to steadily increasing production as additional plants continue to come on line and we look forward to updating the market on production levels on a quarterly basis. Management continues to expect iodine production during 2014 to be on plan.""

[captain_kurt] 29/1/2014 07:40

Keep up PUGUGLY, the water project meeting is tomorrow

[pugugly] 29/1/2014 07:38

Missing any details on financial progress. To summarise - What is reavealed is interesting what is missing is essential" - also nothing on the water project.
Marks 4/10 - Investment rating on the rns 2/10 (imo)