Iofina Share Discussion Threads

[hyper al] 06/5/2014 07:46

Could someone explain the logic in this from todays RNS re 5

" The mobile power generation unit was removed and returned to the local rental firm saving the Company nearly $100,000 per month including rental and fuel costs. Hard power is expected in the next 60 days."

ie why not keep the generator going until Hard power is connected?

[orslega] 06/5/2014 07:44

Q1 produced 47MT, equal to 15.66MT per month averaged from IO1-IO#3

April, with much down time just 3 plants operating = 21.8MT.

So monthly increase near on 40%. Looking good for another record this month, easily. As the picture becomes clearer (like LB transparency) beginning to think 400MT should be a walk in the park.

[bocker01] 06/5/2014 07:42

che7win, I think you are right. Only Io3 ran all the time and then on limited brine. IO2 ran half the time and IO£ did not run at all. Next month all three should run virtually all the time. We should see a significant ramp up. Beating 400 looks very likely. The cost reductions are also extremely positive and happening fast.

[beercapafn] 06/5/2014 07:40

BOCKER01...

For the sake of transparency, the Board will report regularly on iodine production rates, whilst keeping mindful of competitive advantage.

I read that as we will NOT be giving monthly updates in future, rather ad hoc production updates.

[che7win] 06/5/2014 07:36

Good progress, things are improving, the outlook is much better than I expected, so I think they will beat 400mt.

[bocker01] 06/5/2014 07:34

Hopefully we will now be getting updates within two to three working days of month end and a picture of rapid improvement supported by brine flow resolution with Chesapeake will emerge and develop.

[captain_kurt] 06/5/2014 07:33

My expectations were that Lance and the team would turn things around in Q3, but
judging by today's RNS I may need to revise that to this quarter.

[orslega] 06/5/2014 07:30

"The Board continues to have strong communications with the producer and is outlining solutions with respect to brine water...."

The initial RNS suggested major interruptions for rest of year. Looks like that was part n parcel of the kitchen sink. Very good. Things could change quickly : )

[hew] 06/5/2014 07:28

Encouraging prospects despite the various short term issues. And at last a clear detailed report on the essentials, production and profitability. A transformation.

[cyberbub] 06/5/2014 07:28

Great update - 21 tons with IO1 and IO5 offline all month and IO2 offline half the month!

[hurricane.] 06/5/2014 07:24

Good progress by the new team.

Note the high volume going into IO4!

[orslega] 06/5/2014 07:17

RNS Number : 2635G

Iofina PLC

06 May 2014

6 May 2014

Iofina plc

("Iofina" or the "Company")

(LSE AIM: IOF)

April Iodine Production Update

Iofina, specialists in the exploration and production of iodine and iodine specialty chemical derivatives, is pleased to announce a production report for the month of April (or "the period"). The Company produced 21.8 metric tons (mt) of crystallised iodine in the period. This production rate is in line with our recently revised production target. Plants IO#1, IO#2 and IO#3 were profitable for the period. IO#4 is anticipated to be profitable for May, after running continuously for a month.

IO#1 Production Plant

Due to necessary and minor upgrades, IO#1 was temporarily closed during the period. We are pleased to report that, as a result of the upgrades, production at IO#1 has increased by over 25 per cent. This addition was afforded by the successful completion of increased trucked water by the Operator. The plant is now running at record capacity. The IO#1 plant had a promising exit-rate for the month that is anticipated throughout May.

IO#2 Production Plant

IO#2 was shut down for a total of 13 days in the period. The Company completed yearly plant maintenance during seven days in April. The remaining six days were due to failure of the injection pump, owned by the Producer at their injection site. Going forward, the Company will plan for maintenance only when the site is shut down by the Operator, to enable the utmost run-time. While in operation during the period production at IO#2 was robust and in line with Company's expectations.

IO#3 Production Plant

The Board is pleased to report that IO#3 had seen a record monthly production rate, despite its limited brine due to the producer's recently announced fracking schedule. IO#3's plant performance and run-time, excluding lower brine flows, is encouraging.

IO#4 Production Plant

IO#4 was commissioned during the period following receipt of regulatory approval. IO#4 initially experienced start-up issues but, once dialed in, the plant operated as expected. The Company anticipates improvements to allow greater volumes of brine to IO#4 which currently is maximized at 20,000 barrels per day.

IO#5 Production Plant

IO#5 was commissioned during the period following receipt of regulatory approval. IO#5 was unusual and had no start-up issues. The Company was able to prove that the plant operations at IO#5 ran smoothly by the production of iodine and then temporarily shut-in the site. The mobile power generation unit was removed and returned to the local rental firm saving the Company nearly $100,000 per month including rental and fuel costs. Hard power is expected in the next 60 days. Once wired into the power grid, the Company will restart production at IO#5.

IO#6 Production Plant

IO#6 construction continues to move forward as planned. The Company recently decided to only use Company construction employees for the completion of IO#6, resulting in significant cost savings. The commissioning time line is expected to be unchanged and, as reported, IO#6 is expected to be operational by the end of Q2.

The Company has focused to reduce supply chain operating expenditure through all business lines. These savings will be noticed in April and realized throughout the month of May. The supply chain management improvements will reduce monthly operating expenditure for the Company, resulting in lower production cash cost. The Company's production cost remains favorable amongst iodine producers.

The Board continues to have strong communications with the producer and is outlining solutions with respect to brine water volume restrictions at IO#3, IO#4, IO#5 and IO#6 which are a function of increased fracking operations by the producer.

Commenting on today's announcement, Lance Baller, Non-executive Chairman and Co-founder stated: "While the Company is in the early stages of bottom-line optimisation, we are beginning to see promising results. For the sake of transparency, the Board will report regularly on iodine production rates, whilst keeping mindful of competitive advantage.

Following recent Board changes, the Board and I continue to look at ways to improve performance, communications and to protect and grow shareholder value."

For further information, please contact:

Jeff Ploen, Interim CEO and President

Iofina

[captain_kurt] 06/5/2014 07:15

Solid update by Lance.
Nearly half of all production reported in Q1 achieved in April.
With May looking to be a record month!

"Plants IO#1, IO#2 and IO#3 were profitable for the period. IO#4 is anticipated to be profitable for May, after running continuously for a month."

[ammons] 05/5/2014 20:17

The current 6 full size plant haven't produced very much or produced consistently as yet and growth beyond IO6 has to be factored in? I doubt that the market will see it that way.

[che7win] 05/5/2014 17:56

Naphar,
Your post is spot on, Lance will have an effect in later months, there are only so many hours in the day, but I expect he will be instrumental in the turnaround, already he has had a profound affect.

If he has made any impact on the plant production, it would have been right at the end of April so will become apparent from May.

A small fundraising means growth, that now has to be factored in beyond plant 6.

[naphar] 05/5/2014 17:35

Che,
I am with you on your output expectations. Seem reasonable.

Mad, I would not expect to start seeing output numbers at 1/9 of the remainder expected I 2014 (39mt). I hope the market does not expect it. New plants need to ramp up, brine supply needs to stabilise, the Lance magic if there is any needs to bed in. His arrival will not see 39mt from April, especially as I doubt he was involved for the entire month.

Dcgray
Let's be clear, 400mt will not be a slam dunk. I don't think is the time to be expecting them to comfortably exceed expectations. This is time to keep our feet on the ground I think. If we will exceed I hope that will start becoming apparent with the August/September production numbers. Any sooner, like achieving 39mt in April or May, and I will also be wondering where 400mt came from.

[1madmarky] 05/5/2014 17:28

30 tons for April would be very good so I'm thinking 25 to 30.hope they do report the numbers as then we know where we are, good or bad

[orslega] 05/5/2014 16:38

che - of course - feel better now!lol Thanks

Production operations commenced immediately upon such approval on 11 April 2014.
In line with the Company's statement on 27 March, construction of the Company's IO#6 plant continues, with completion expected to occur in Q2 2014. Images relating to IO#6's progress can be viewed at hxxp://www.iofina.com/.

[che7win] 05/5/2014 16:29

Orslega,
6 is expected q2, anytime.

[orslega] 05/5/2014 16:25

re IO#6 - on the basis that the brine supplies for that site is also only nominally affected, am hoping that LB accelerate its' implementation. The original plan was to have IO#6 up and running in H2 (per RNS), but given that most of the capex has already been spent may as well get it producing.

edit : Q2 for IO#6 not H2 - so anytime soonish

[che7win] 05/5/2014 16:24

Mad,
39mt is way higher than I expect, I'm not saying it won't happen but I would have to question the 400MT figure in that case.

I expect brine issues the next three months, but issues to become more normalised over the rest of the year and steadily increasing output.

Numis stated monthly figures to be released, that would indicate that management expect an increasing trend over the year, but 39mt right now would set the company to blow 400mt expectations out of the water (excuse the pun!).

26mt is a fairly good, 30-36 is excellent, 39 and I'd be puzzled.

[dcgray21] 05/5/2014 16:09

Orslega - thanks . It was my thinking that with 4 and. 6 able to contribute then all things being equal this should be the catalyst to getting comfortably beyond 400mT . Fingers crossed

[orslega] 05/5/2014 16:00

dcgray - yes that is my understanding. IO#5 in particular has been badly affected by brine supply (because of fracking activity) and therefore a good decision to shut it down (cost saving) in the short term. By the time they get proper power - 3 months or so, hopefully more brine will be available.

"steps are being taken to minimise expenses both at corporate and operational level, including curtailing production at IO#5, which is powered by mobile power generation until hard power is installed from the local utility expected in the next 90 days"

IO#3 is still producing but affected (negligible output?) but IO#4 should only be affected nominally, so what that means in overall production terms, who knows. But we should know soon.

Looking ahead IO#6 is due to come online Q2 and don't know where I read it but that site, like IO#4 should only be nominally affected by fracking plans for rest of FY 2014...

[monty panesar] 05/5/2014 15:58

LB only rejoined the board on April 10th so I can't see April production figures being any more than 25t based on the production figures under the past management.