Iofina Share Discussion Threads

[freddievas] 06/5/2014 11:03

Here come the shorting brigade again. Greedy so and sos.

[superg1] 06/5/2014 10:43

I have updated the header and had a go at trying to work out possible and potential production for the coming months.


EG.

H2 io3 to 6 on half brine rates, should do over 1mt per day, with io1 and 2 covering over. 1mt per day going on past and current comments.

Around 70mt reported so far, with, I would hope 30mt plus for the month of May and June, giving a 270mt figure to be achieved H2 (1.5mt per day).


Spike mentions it, and is has been commented on in news. Chesapeake/IOF have solutions in mind to re-direct brine to IOF plants.

That said they mentioned the frack initial disruption is for 3 months. io5/6 look set to be in production post that period. That also gives time for the brine to be sorted if it's an issue then.

Overall it seems io4 didn't really contribute in April but will in May. Io2 17 days, some at a lower rate no doubt on the start up.

It was rumoured the prior bod removed some essential parts of io2 and clogged up the plant causing the end of 2013, 'residue' issue.

The new chair appeared during April, and no doubt the io2 down time included putting back what should never have been taken out.

Looking on forecasts and assuming a good month for May with io2 running consistently with io4 joining in, then we may see a 35 to 40mt rate or more, if things go well.

I take it monthly updates will come for the next few months at least to keep the market better informed, through the frack disruption period.

Interesting that io4 does have brines at times of up to 20k bpd.

[1madmarky] 06/5/2014 10:36

Nice update to the header!

[garfield31] 06/5/2014 09:30

Thanks Mike

[spike_1] 06/5/2014 09:13

Hi Garfield, from several RNS's. - cheers - Mike

[andy] 06/5/2014 09:06

madchick,

AIM listed company RNS are an art form in obfuscation, and designed to be!

[n3tleylucas] 06/5/2014 09:05

Good god! Back under 40... sigh.

[garfield31] 06/5/2014 09:02

Spike_1 - Mike when you say Chesapeake is very keen to help do you get that from the reference to strong communications in the RNS or from something else. If the case then should be some steps by way of mitigation which can be taken. Garfield

[madchick] 06/5/2014 08:41

Well-structured RNS.

The only bit I found confusing was the following:
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.

Really great that production increased by over 25% (maybe our little baby plant will turn into a big one!) - however, on the one hand it indicates that this is due to minor upgrades and on the other hand it suggests that it is basically due to extra brine from the operator (and thus, presumably, not due to the upgrades - or were the upgrades to allow capacity for extra brine??).

Reading these recent RNSs, I can't understand how the old ones managed to be so unfathomable - that was quite an art in itself!

[n3tleylucas] 06/5/2014 08:36

Money's tight, it's all cuts. That $5m won't go far... start reporting monthly sales. Production only tells us half the story here. Blind.

[spike_1] 06/5/2014 08:35

Re; brine flow

FWIW: I do believe there is a work around. Chesapeake are very keen to help, and Lance has intimated he and they are working on it.

Best wishes - Mike

[huttgl] 06/5/2014 08:32

"
IO#5 was unusual and had no start-up issues
"
Someone still got a sense of humour then.

[cyberbub] 06/5/2014 08:31

Hopefully quite a few people waiting for clarity on production will now start buying?

[roundup] 06/5/2014 08:31

It's a bad time to sell and a good time to buy. The bad news is behind us with a much brighter future ahead. A company is only as good as its management, and we have now got rid of the main cause of poor performance. From here things looks good to get production increased, all thanks to a quick response from Lance.

[hyper al] 06/5/2014 08:29

Spike_1

Mike, thanks for the detailed response.

Sounds like things can only get better from here.

Regards,

Al

[count chris] 06/5/2014 08:18

Great to have some proper figures and explanations. I do think some are getting carried away expecting full production shortly - the brine disruption isn't over yet and I'm not convinced there's a work around. We've seen enough to know that it will come though and is unlikely to disappoint. Looking forwards to getting a mobile in operation.

[rogerbridge] 06/5/2014 08:09

What a difference. A clear and precise rns. Pretty good with all the down time and maintenance.
I think going forward Lance will beat the 400 MT with some to spare. He has to find a aolution with Chesapeake regading brine, if that happens in the next couple of months, the 400MT target could be smashed.

[che7win] 06/5/2014 08:00

Remember, Lance would only start having influence at the end of this period, May should be a record month.

[diggulden] 06/5/2014 07:59

Solid RNS, agree with 1MM, 400MT should be achievable/beatable but clearly the next couple of months will be crucial in terms of ramping up production. Would like to see 35-45MT for May for an indicator of clear progress.

[spike_1] 06/5/2014 07:57

Hyper:
IO#3,4,5
Normally the brine which comes up with the oil, is sent straight to the SWD (disposal well) via our plant next to it.

there are currently issues (earlier RNS) with our partner (Chesapeake) re-using most of the brine for a fracking programme. This should reduce significantly once we are in early Q3. However the fracking is of new wells, so once complete we will have even more brine available than before.


Best wishes - Mike

[1madmarky] 06/5/2014 07:56

Ditching the mobile generator is necessary as the brine to IO 5 is limited. Thus it would not be economic to run.
Finally we can see what is actually happening with our investment. Looks like the 400Mt target is beatable but there are still obstacles to overcome.
Hope we continue to get monthly updates, we need monthly updates to calm everyone's nerves. GLA

[orslega] 06/5/2014 07:51

Hyper - IO#5 is affected by low brine supplies currently. Part of LB immediate cost cutting - IO#5 will come on line (brines start flowing) after main electricity hook up.

[bocker01] 06/5/2014 07:49

beercapfn, I very much hope you are wrong but we will see.

[dcgray21] 06/5/2014 07:46

Encouraging to see IO3 profitable during the period it has been impacted by brine flow issues .