Iofina Share Discussion Threads

[superg1] 21/6/2014 11:18

It would from this link that Weil resources have started Helium extraction next to IOF's acreage. The website comment on the subject seems to be from a couple of months back.



April 11, 2014
"Weil Helium LLC is developing and extracting helium in Rudyard, near Havre. Helium is extracted when natural gas is refined. Tester's bill will ensure a stable, long-term market for Weil's helium."


So the question covering whether Weil resources would move forward with the project seems to be a yes.

From memory Brainstorm have about 6000 to 7000 acres in the area.

IOF have it surrounded and the next post tells you why.

[1madmarky] 21/6/2014 10:31

Angel of the north... Ah just shows how often I look at the website, thanks

[superg1] 21/6/2014 10:19

Pheon

re that reduced production/demand increases.

It looks like

SQM -2,500

Sirocco -500

Coasayach as yet unknown but surely 1000 plus

Bullmine, stated at the AGM they have stopped producing, that will be 1000.

2012 to the end 2014 should add up to around 3000mt in demand growth.

Theoretically an 8000mt difference.

So in theory come early 2015 the inventory cupboards will be bare, but if end users get a sniff that it's going that way, they will empty those inventories to secure low prices, the end users have their own long term priced contracts to honour.

[superg1] 21/6/2014 10:08

Bob

Missed that one. The point is IOF will target the high ppm sites. I think the recent chaos was down to rolling out plants at high bpd sites and not getting the calculator out.

It's not the number of plants it's the bpd x ppm (a matter we keep mentioning). As we know Io2 is worth 2 or 3 of another plant. That imo should have been the way with io3 to 6, although at least one of them is thought to be on healthy ppm anyway.

10k bpd at 200ppm is worth 20k at 100ppm, but 20k bpd has higher costs re pumping, and chemicals etc, so it becomes a game of getting the balance right.

Take the new pods. Up to 10k bpd for a pod and sites identified said to range from 200ppm to 1000ppm. I know which site I'd like the next pod to go to, but though it seems that way, it depends on the bpd at a 1000ppm site.

So a pod at a 1000ppm site on 5k bpd, on 90% yields means .714 mt per day or 5 mt per week, 20mt per month, excluding down time.

You can see the big change that makes, if they have good bpd on ppms like that. To repeat Jeff was muttering very enthusiastically about some leases they obtained in the last few weeks. They also said they are very active on that front recently.

I would anticipate any 200ppm pod to be on 10k use (2 mt per week, 8 plus per month)

Pods it seems would be fully automated, with no staff required at the site. Previously they have suggested 8 staff per big plant.

We know they have trails on at io1 where a previously used chemical has been dropped, form the figures given I had that as at least a $2 per kg saving on opex if it works. No staff at pods gives a $1 to $2 saving, they would probably be more efficient on power too.

Putting that in context for SQM, the above if it happened would mean $24m to $30m mill savings on their production. So those tweaks are well worth the effort looking long term.

The comment was to get the opex into the teens.

When you have SQM closing mines when it hit $50 as the production costs were too high it puts the business into perspective.

At the AGM they said they will dump recycling once production is at a rate to cover that. They state recycling has the highest cost.

So why on earth are SQM with all their caliche and previous boasts of low costs, increasing their recycling ???

The Japanese have been forced that way. Near term IOF on forecast should be the lowest cost producer in the industry by a significant margin.

It would be interesting to know what the opex costs at io2 are, as that would demonstrate how low the opex can go, if such sites are available.

They certainly seem to be, re the 200 to 1000 comment.

[angel of the north] 21/6/2014 09:40

It's been there for months and EVERYONE has seen it....wake up and catch up!

[1madmarky] 21/6/2014 08:20

None not non... Bloody phone

[1madmarky] 21/6/2014 08:03

The February 2014 presentation is available on the website
Can't believe non of you have found it. Thought me phone was telling me lies

[bobsworth] 20/6/2014 20:38

Bogg1e
18 Jun'14 - 16:50 - 22208 of 22301 0 0

SG, in regard to the iodine going down swds. I take it that the iodine is quite diluted. Isn't the cut off point 60 ppms before the technology costs outweigh the value of the iodine extracted? Ie is it viable to process the brine in SWDs or was the original comment more to demonstrate how much iodine is coming up in brine each year? Thanks.
.................................................................................................................
Bogg1e
With no direct reply to date to your above post, which I thought was very apt considering that Pods hooked upto SWD's are Iofina's latest strategy, I decided to ask Lance.

His short reply was "Targeting SWD's because many are not diluted"

[mister big] 20/6/2014 17:56

Not sure , been busy will check later !

[che7win] 20/6/2014 15:55

mister big,
did you get the 55k earlier today?

[che7win] 20/6/2014 15:54

dc,
yes, I hear there are ways to fund growth without resorting to fund raisings.

Come to think of it, the previous FD told me that they were thinking about plant-financing....

If we have a proven model, it should be possible to get loans for building the mobiles, especially when the pay back is so short.

[n3tleylucas] 20/6/2014 15:28

Arron,

The site is down, updating?

[mister big] 20/6/2014 15:16

Netley _ i agree.
ps _ i had an order in for 100K at 51p which is where the market is.

no contacts in japan - havent even been there

[n3tleylucas] 20/6/2014 15:06

You must be organic growth, stop the fundings, buy-back the stock you've wasted and become a proper business.

[dcgray21] 20/6/2014 14:39

Che - my take from the AGM is Lance is well aware of the call off order scenario and linkage to up front funding for further unit rollout . As mentioned earlier we just need confirmation of one of these to ignite the share price Mister B. - how are your contacts into the Japanese industrial sector ?

[che7win] 20/6/2014 13:18

Mb,
Very interesting, how close a deal is the question.

This weakness could be due to last of the T+20s selling out from a month ago?.

[phoenixs] 20/6/2014 12:48

and to follow on from that mb, once IO1-6 are all producing close to optimum, the funding possibly arrives for a rollout to produce a large quantity of iodine for a demand shortage, which could soon be running at up to 4000mt pa. That is the reason to invest in IOF.

At least it is not rocket science!

[superg1] 20/6/2014 12:43

similar to the Hal water deal that was turned down then, I understand in those circs the partner would pay for all depots and staff with IOF getting a cut of the water revenue (50%).

It would be a different set up for iodine but I can see a situation developing within a year or two where end users will be very keen to secure supply agreements.

The iodine price would have to rise significantly for the Chile folk to justify the capex needed to fill any gaps that may appear.

EG Sirocco were on the hunt for $50m a while back for a pipeline they would need if they expanded. As such forward movement hits margins it's not worth it. They had to stop the ALP for that reason, if it was running now they would be losing money.

[mister big] 20/6/2014 12:16

i believe building plants to order on supply agreements makes perfect sense, its what i would do, and ask for a funding deal to boot and remove the funding risk. Thats why i say the company is far from ex growth and doesn't need vast funds to expand.
doh!

[superg1] 20/6/2014 11:42

Phoenixs

Yes and most probably don't realise the same Japanese companies hold stakes in US oil and gas companies.

Some time back IOF said they had many contracts signed with US Oil and gas companies and would not declare others in the future unless they were material etc.

For all we know IOF could have brine deals where Japanese companies have a stake in the oil company.

Just a minor point, but it demonstrates how many fingers such folk have in various pies, and thus know the business.

[bogg1e] 20/6/2014 10:55

Do we know the levels of iodine consumption associated with the likely Japanese partners? eg 500 tonnes per year. Or is there no way of knowing atm?

[phoenixs] 20/6/2014 10:50

superg, not ears more like 2+2. Whether it makes 4 or 5 I am not sure, but economically it is surely the best way to go for a fast build of plants and rapidly increasing output. The technology has been proved, it is only a matter of building units to supply matching demand from possible supply agreements.

[superg1] 20/6/2014 10:35

Phoenixs

You clearly have ears in good places.

[phoenixs] 20/6/2014 09:27

superg, You have presented the case for shortfalls in the market re iodine supplies. On that basis, it would be consummate sense for consumers (most probably Japanese) to look for a partnership agreement which could even involve the financing of plants in return for some future iodine production as the over supply seen in the last year ends, most probably in the second half of this year.
This could be a win win strategy for both parties.

[superg1] 20/6/2014 09:09

I'm not sure if it was covered in detail post AGM as much has been said but to cover bulk iodine sales.

Lance said they would target supply agreements, and build plants to suit rather than build up large inventories.

Supply agreements were talked about where the actual amount can be supplied up front, a steady rate or all at the end.

I heard the words supply agreement many times from a few at the AGM as did others.

Mr Big keeps making reference to the Japanese and such matters.

A couple of name are around on that topic, both Japanese. So while we wait for iodine production rates for io1 to 4, while they are material for some on a short term view, they are immaterial if supply agreements appear.

IOF will have excess anyway post all 6 current plants running, plus 2 sites ready to drop pods into.