Iofina Share Discussion Threads

[che7win] 23/4/2014 21:52

Ammons,
Yes, derivatives.

[battery] 23/4/2014 21:51

Cyberbub. The chemical division used to source its raw iodine externally from SQM. It stopped buying in raw iodine 12 months ago and has since been using 'home grown' raw iodine.No idea what the interdepartmental cost is but as a group its the same answer.I note the RNs states a revised target of 400T for the year and the understated comment that IOC had had a very good Q1, 'beyond expectations'. 400T is the same amount IOC require to support their business.

[bad robot] 23/4/2014 21:40

Lets not forget. How long will £1.3M last for any company whose operations are overseas?




Such measures are being undertaken to conserve the Group's cash position which was $2.3M at the end of March.

[ammons] 23/4/2014 21:38

c7w, strong sales of what? They only produced 47T in Q1. Or do you mean the derivatives business?

[phoenixs] 23/4/2014 21:35

che7win, IO5 will stay offline until they can guarantee brine flow. The generator etc alone would have cost them $100000 pm. At last some sensible management decisions

[che7win] 23/4/2014 21:32

Rock Star,
Thanks for your view, I would agree with that. IO1 and Io2 should make them cash flow positive. I think they did $500,000 profit this time last year.

They may hold io5 offline for a while.

I expect the strong sales first quarter will mean receivables still to flow into cash received.

[phoenixs] 23/4/2014 21:30

ammons, we believed the management which has turned out to be a disaster. Management which sit on their hands are of no use. This is stating the obvious.
What you say about brine is right on. Lets see what LB and his team do. I think we need to give him the benefit of a clean slate. I believe that this would never have happened had LB been in control. It is where it is. To carry on slating the business will do no good for Iofina. It is plain to see that some on this board would derive great pleasure from the demise of Iofina, what sad people they are. A UK quoted company with great technology and a great business model which admittedly has not been followed through. That is not to say that it cannot succeed. It can if managed properly and decisively.

[bad robot] 23/4/2014 21:23

JC

They will have be very quick for a placing. If they will leave it too late they won't get 5p .

RI tends to be at 60%-75% discount.

Check out AQP, they did one yesterday at 65% discount

[ammons] 23/4/2014 21:21

We still have the FY results to come. Hat trick of terrible news perhaps? Fund raise? Has mister big gone inside hence his silence? Although the company announced where the various plants would be located (in the same area) nobody on here questioned it, including me, at the time. Now all and sundry are barking on about what a daft move it was because of brine supply interruption risk. The tech works, but is only of any use if they get the brine.

[johncraven] 23/4/2014 21:03

With 2.3m $ it won't last that long so maybe a placing on the cards

[bad robot] 23/4/2014 20:56

Lots of confidence when the share price has tanked by 60%. Crazy world.

why keep puffing when the share price has sunk -90% from its peak. Maybe it's time to realise that all calculation & projecions were all bs !!!!


I suppose the diehards will still have confidence when RI is at 5p

[rock star] 23/4/2014 20:55

c7

Agreed. They ought very very easily get to casflow positive on the current assets with zero further capex. The first 2 plants alone back to where they were a year ago would achieve that. It's just a management issue imho.

Adios

[naphar] 23/4/2014 20:53

Rockstar
I agree with others, nice post. It had already occurred to me that if they are going to truck in brine they should target the low bpd high ppm sites first if they can. My only reservation is that if those sites are from a different operator, they may also have to pay SWD costs, but far better to have slightly higher costs and utilise your assets providing a return and needed cash flow, than use limited cash resources building mini plants. They can do that later when cash is more available and brine flow is maxed out at the large plants.

[gadolinium] 23/4/2014 20:43

Cyberbub
Patents are granted for 20 years from the international filing date. In the case of US patent 8496815 this was filed 21.09.09 so will expire on 21.09.29.

I believe that iodine is sold internally to Iofina Chemical at a modest premium to the production cost, but I cannot confirm the source of this belief any more!

We were told Chemical division no longer buying iodine from SQM at Jeff Ploen's presentation.

[rock star] 23/4/2014 20:36

cyberhub,

I haven't got time now but if I can find time will try and go through.

All they need to do is get production back to same level as this time last year (ie 1t per day)and the stock will re-rate imho. Difference now is they have 4 sites operational rather than 2.

rogerb- agree.

[che7win] 23/4/2014 20:32

Rock Star,
The big question for me is can they get to cash flow positive with the curtailing of capex, reduction in costs and milking the current assets?

They have interest payments to make, if we can become cash flow positive or already are at this point, then that is all that really matters right now, they can work through the issues.

[diggulden] 23/4/2014 20:28

Don't disagree Che, but the point is that is out of Iofina's control on both fronts, 1) how much brine and 2) the quality of that brine.


Cyber,
'Oh and... does the chemicals division depend entirely on the extraction division for its iodine, or does it also buy in iodine from elsewhere to make up any shortfall in its requirements?'

It is only recently Iofina has been self sufficient in Iodine for the chem div, prior to that there were buying it in from SQM at market price.

[woodpeckers] 23/4/2014 20:28

Yes, thanks for your thoughts Rock Star, well put.

[bad robot] 23/4/2014 20:26

spread of 4%-5% Narrow?

[che7win] 23/4/2014 20:23

Dig,
Altered brine flow can also raise the the iodine concentration, it works both ways.

[cyberbub] 23/4/2014 20:21

I said the *spread* was very narrow, implying an active market...NAI

[big7ime] 23/4/2014 20:21

So there are no instiis holding? Only nominees (for PI's)

[cyberbub] 23/4/2014 20:20

Rockstar, can you please set out your calculations for your belief that 70-80mt per quarter is enough to be profitable, particularly with the admin expenses? I would be interested to see. Thanks if you can do so.