Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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Comment below I posted on ADVFN. 2nd largest producer Cosayach had the extension of a large mine rejected earlier this week…
A little more digging on the Cosayach Negreiros mine.
At best production will start to tail off next year. I think it currently produces around 2000t a year so over 5% of world production.
The article below confirms they will have to start laying people off in the coming months.
This is the 3rd time in 3 years the application has been rejected. They can appeal and resubmit but you would think it will take at least another 6 months to reverse any decision.
You would think in current situation Cosayach will hold back some iodine sales to create a buffer in case they lose 1/3rd of their production next year.
Spot iodine price fell around 9% from its peak but has rallied 2% in last few days.
I think this is very significant news and could well keep the Iodine price higher for longer.
“However, it again suffered the anticipated term of its processing, again due to the consideration of the authority that there was a lack of essential information to evaluate the possible impacts of the activities, for example, on human groups belonging to indigenous peoples indicated in the area of influence. In a statement issued this Wednesday by Cosayach, the mining company lamented "the decision of the government authority that recommends rejecting" its initiative, and expressed its concern that "an administrative decision jeopardises the employment of more than a thousand workers." In it, they affirm that during the following months, the Negreiros task "will exhaust the mine area authorised environmentally for the extraction of caliche so operations will cease and contracted personnel must be demobilised."
Company expects second-half production at the bottom, or very marginally below the bottom end of the forecast range of 325-350 MT from its six iodine plants.
Dividend? You'll be lucky. They spend all their cash on new plants and decommissioning old ones.
That to me is the more likely reason for the fall in share price - an anticipated pull back in the iodine price which has been surging in the recent past.
FastMarkets try and track it but mainly you have to follow what SQM say.
Price is in late 60’s and fairly stable although most analysts expect it to average $60 for 2024.
I don't follow? The iodine price is still robust, the new plant is online albeit ramping up slower than anticipated and the next new plant is committed. I don't see any reason for such a dramatic fall unless you can read something into this I can't see?
Does anyone have a link to up to date iodine pricing?
Oh well, same old Iofina, things never seem to run consistently smoothly, but I'm still positive medium to longer term and will be adding again on weakness having sliced earlier in the year around the years highs.
Quarter's result out. Now we know why the sp has lost 20% odd over the last few weeks. I hope IO09 is not as leaky as the boardroom.
Not sure it matters much, as according to the last interview Tom has little interest in the share price, or rather feels it is out of his control. He could be right, this is a buy and hold for a couple of years, then a nice dividend?
Is the iodine price falling, causing the sell off?
Oklahoma is one of the biggest oil and gas states in America, producing almost 500,000 barrels of crude a day and huge quantities of natural gas.
Employing 15 per cent of Oklahoma’s workforce, the sector contributes $60billion (£48billion) a year to economic growth.
Production is well honed, generating not just fossil fuels but vast amounts of oilfield brine.
Progressive: Iofina has pioneered a way to extract iodine from the brine, turning dirty water into a valuable resource
Progressive: Iofina has pioneered a way to extract iodine from the brine, turning dirty water into a valuable resource
Traditionally, this has been viewed as waste water. AIM-listed Iofina considers it an asset.
The firm has pioneered a way to extract iodine from the brine, turning dirty water into a valuable resource. Iodine has numerous applications.
An essential mineral that promotes growth and brain health, it is added to salt and other food across the world. Iodine is also used to make images clearer in magnetic resonance imagery (MRI) scans and is a critical element of products from pesticides to preservatives.
Iofina sells both pure iodine and related compounds used by manufacturers and industrial firms in the US and internationally.
Midas recommended the shares in September last ear, when they were 23.5p and boss Tom Becker was about to start work on his sixth iodine plant in Oklahoma.
That site is now up and running, with a seventh expected to come on stream next year.
Assessing which locations will yield the most iodine and developing partnerships with oil and gas firms in those places takes time and effort. But Becker and his team are experienced and well connected, they know where to look for deals and plan to continue doing so.
Recent hard work is paying off. Shares have risen 23 per cent to 29p over the past 12 months and Becker last week unveiled upbeat interim results, with pre-tax profit soaring 80 per cent to $4.7million (£3.8million), despite rising costs.
Annual production is set to hit nearly 600 tons, with Becker optimistic of reaching 1,000 tons a year by 2027 at the latest.
Iofina’s compound arm is firing on all cylinders, increasing sales and working with customers in sectors as diverse as animal feed and lithium batteries.
Brokers expect strong, sustained growth across the group, suggesting the share price should reach 40p, as production increases and new deals come to fruition
Midas verdict: Iofina shares have performed well but they should continue to rise, as Becker delivers his strategy. Iodine is in demand and Iofina’s technology is cleaner and lower-cost than many rivals. At 29p, the shares remain attractive.
That IG interview was really good. I think he askes a lot more questions than other channels do. Both interviews touch on different things so worth watching both.
Iofina looks to continue to produce record earnings
https://www.youtube.com/watch?v=OR4f9Wa8TvI&t=1s
Iofina plc posted interims for the HY ended 30th June this morning. The Group produced 242 metric tonnes of crystalline iodine during H1, in line with guidance, crystalline iodine sales were up 122% to 169MT reflecting a return to strong demand after impact of Covid restocking by customers at the end of 2021. Revenues were up 27% to $24.3m, adjusted EBITDA was up 60% to $5.9m, PBT was up 80% to $4.7m. The balance sheet is strong, cash was up 33% to $6.3m. The outlook also looks positive, with the addition of IO#9 output, H2'23 production is on track to meet the 325-350MT target. Valuation looks reasonable with forward PE ratio at 11.1x in the top third for the sector. Share price also has some positive medium-term momentum. BUY. ..
...from WealthOracle
wealthoracle.co.uk/detailed-result-full/IOF/789
Agreed. Those financials were excellent. Share price has become disconnected from fundamentals (for whatever reason). That will change as time passes. While IOF are a one trick pony, they are very proficient now at what they do best..........producing Iodine and complimentary related products. More confident about their prospects than ever. Debt eradicated and new processing plants can be financed from cash in hand.
I'd go further excellent results today. Share price doesn't seem to think so. In the last couple of weeks, I have observed higher than normal purchases. I do not have these recorded, but it is not the first time pre results this has happened. There are a couple of major shareholders who from the outside seem to be building slowly their stakes. It crosses my mind that they add pre-results, so to sell on results to stop the price in its tracks. With the resulting price allowing for further cheaper additional buying.
Very positive interims. IO10 to be finalised soon. Good cash position.
I should add - it only needs to double from here and stay there, and that is very possible in the next 12 - 18 months in my view. USA is also re-shoring and bringing production back. IOF will be an important company to the USA with Iodine in the next 5 - 10 years. Fortunes to be made here in the long term in my personal view
When this company reaches a market cap of £100m - £150m then institutional investors will start to take interest and the SP will really move then more regularly