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I sold recently and missed this rise, just couldn't risk further IO9 delays. To be honest I am expecting them, but GLA.
The company not delivering and just being fortunate in a high price environment is not an investment case for me. Quite disappointed with the lack of news here.
The above date is per the latest news release. No doubt the directors are desperate to have a positive outcome to their IO9/10 contract negotiations by this date to add to what I am certain will be excellent results. However, I think it is unacceptable to publish results on the last possible day allowed under the rules to do so. I blame the the near 72 year geriatric finance director who works from the UK when the rest of the staff work in the US for the interminable delays on the new contracts. He is clearly now very slow and scared of his own shadow and should be replaced asap. Surely Sneller with his £8m investment in the company will use his influence and voting power to see through the necessary change to give the company the dynamism it needs to capitalise on the extremely beneficial trading environment it is now in.
You ar correct about rising costs, but Iofina is the lowest-cost producers. Hopefully we will see them reverse the slight iodine production tonnage tomorrow. The back drop to these issues is an increasingly strong demand and selling price of Iodine. I'm holding for the time being as this has a lot further to run. Maybe with a bit more self belief, and a couple of wins could be the tonic, this could be a very profitable business.
The issue is fixed costs are rising and production is falling. That is why we need more plants and diversification into chemicals. It's down progress but profit won't skyrocket until we fix production IMO. That said my own assessment is a value well above here, but there are risks to assess. DyOR, I'm invested, but have sliced off some profit. That normally means we go up!
Mobilising 300K further troops & making Nuclear threats in latest speech, just announced ‘Times of Israel’.
Midas touch ?
I certainly agree with the conclusion of the article. The current share price should be well over double its current price.
I do not know how old the brokers reports that are referred to are but they must be well over 6 months old. How could annual revenue possibly be forecast to go up only 5% from $39m to just $41m when the average price of the product that is produced and sold has virtually doubled since the previous year and when the company’s latest forecast of its annual production is that it will be close to that of 2021 (518mt). The annual revenue for 2022 must be considerably higher than the measly forecast of $41m and annual profits must be considerably higher than $6.2m too. These are more like half year forecasts than annual ones. Another big plus is that the US dollar has appreciated by 15% against £ sterling since the beginning of the year and all the company’s revenue and accounting is in US dollars.
I await the interim results with great interest not just to see what I expect to be stellar results but to find out the situation regarding the long-proposed new IO 9 and IO 10 plants. If Becker has an ounce of self-respect left, he will not repeat his endless assertions that the contract completion on these is imminent. He will have to spell out the exact position. Hopefully he will just announce that the contacts are now signed and that commencement of construction is underway and we will all be even happier.
Part 2
Iofina's brine approach is friendlier to the environment and less expensive. The process has been designed for areas where oil and gas companies' waste brine contains plenty of iodine. Oklahoma is one of those places and Becker expects to start work on a sixth plant later this year, with another one coming on board shortly afterwards. With further plants on the cards, Becker hopes to double annual production to 1,000 tons within the next three to five years.
All the iodine that Iofina produces is used by its chemical division, turned into compounds and sold to businesses in a range of industries.
The group buys in a small amount of iodine from other producers too, and also makes compounds from fluorine and chlorine. These share similar properties with iodine and mean that Iofina is not reliant on a single chemical element for all its sales.
The firm spends time developing new uses for its raw materials too, so it can expand into fresh markets, such as the fast-growing semiconductor industry, which uses fluoromethane in the production process.
Iofina has had a troubled past. The group expanded too quickly a decade ago, when the Fukushima nuclear disaster in Japan disrupted the iodine market and sent prices soaring.
They collapsed a few years later, leaving Iofina with large debts and loss-making plants. Today however, the company is profitable with a strong balance sheet. Becker is ambitious but careful too, making sure that the firm does not repeat past mistakes.
Interim figures, released this week, should be encouraging and brokers expect a 5 per cent increase in full-year turnover to $41 million, with profits up by 26 per cent to $6.2 million. Growth is forecast to be even stronger in 2023, with a turnover of $46million and profits of almost $8million.
Encouragingly too, former star fund manager Richard Sneller is a big fan of Iofina. With a personal stake of almost 18 per cent built up over the past two years, he is now the group's largest shareholder.
Midas verdict: Iodine is an essential mineral and demand is growing across a variety of very different industries. Iofina is not just a low-cost producer – it also turns iodine and other chemicals into much-needed compounds worldwide. At 23.25p, the shares are deeply undervalued. Buy.
MIDAS SHARE TIPS: Iodine from Iofina is in demand and you can profit
Added value: Iodine produced by Iofina is in demand as an additive in salt and has many other health uses
Added value: Iodine produced by Iofina is in demand as an additive in salt and has many other health uses
Brazil, the US and the Philippines may have little in common. But they are among dozens of countries that add a small amount of iodine to their salt to ensure citizens do not suffer from iodine deficiency.
Iodine deficiency is the biggest cause of brain damage in the world. The mineral is essential for growth and development and is especially important for pregnant women. In the UK, however, salt is not iodised. Children and adults alike are expected to get their fair share from milk and dairy products, eggs and fish, but not everyone does, with scientists raising concerns that many people in this country suffer from a mild deficiency.
Iofina is an AIM-listed business based in Colorado, which produces iodine and turns it into compounds sold around the world. The shares are 23.25p and should increase substantially over the next few years.
The company has perfected a way of extracting iodine from brine that is left over during onshore oil and gas production. Iofina then turns the mineral into compounds used in a range of industries, from healthcare to nutrition to technology.
Inclusion in salt is essential in much of the world, but the biggest single use for iodine is as a component of special compounds – known as contrast agents – that make MRI scans clearer. Contrast agents help doctors to detect issues from tumours to heart failure and their use is growing as populations age and healthcare systems become more sophisticated.
Iodine compounds are included in certain statins as well. They are added to animal feed, used in paint to stop it going mouldy, feature in LCD screens and play a role in numerous industrial and chemical processes.
Demand is strong across the board, supplies are limited and iodine prices have been rising, reaching record highs of $70 (£60) per kilogram in recent weeks from lows of less than $18 a few years ago. Such lows are unlikely to be repeated in the near term, but chief executive Tom Becker has worked hard to ensure that Iofina is one of the lowest-cost producers in the world, making the group more resilient should prices fall from current levels.
Around two-thirds of the world's iodine comes from the Atacama desert in Chile. There, ore is mined from beneath the ground, broken up into small pieces using explosives, transported to special facilities and turned into iodine through a chemical process known as leaching.
You can find your trades on the other IOF page on this site. Also who is having a larf with the 123 trades?
I have been buying a number of these shares in recent weeks. Like you, I noticed that several of my purchases were not being recorded. When I looked carefully at my broker’s Contract Note I saw that they had bought the shares on the NEX exchange and not LSE. I do not know why they do this. It seems very strange. Consequently, however, the purchases are not recorded on the LSE site as they are outside their remit.
I am not suggesting there is any causal correlation but the only other time I know my broker did exactly the same thing for one of my other investments, the company was shortly taken over at a substantially higher price!
Lse showing no buys yesterday but I know that 25670 were bought yesterday afternoon @ 23.35p. Looks a reasonable medium term punt if Board are able to capitalise on the strong Iodine pricing.
No dividend at the moment. Retaining cash is important for weathering economic headwinds and re-investment in growth.
Please don't expect a dividend any time soon.
Did you see this from this morning:
01-Sep-22 07:59:04 23.25 1,750,000 Unknown* 23.00 23.50 406.88k
Sadly won't be going higher as can't buy more than 2000. Can sell large amounts though, although I'd like to buy, not sell.
A divi would be very welcome. As they are making a good profit now, with debt almost gone, I don't see why not. Borrow to grow.
Share supply seems to be tightening. Half year results in around 4 weeks.
If the management are financing IO9 and IOF is profitable as well as generating cash - does anybody else think we might get a maiden dividend? The thought just crossed my mind
Good news as that was April to June, and prices have increased considerably since then. Just confirms what IOF have recently reported.
https://ir.sqm.com/English/news/news-details/2022/SQM-Reports-Earnings-for-the-Second-Quarter-of-2022/default.aspx
Page 5 Iodine...
We get this in September. Hoping for an update on new plants at the same time if not before. Nice spate of buying today. Moving up in low volumes.
Been topping up for past 2 weeks. When I bought today the spread was a tight 23.25 to 23.27. Its nowhere near the "advertised" spread unless you are dealing big.
Nearly all buys today.
The wait for news on i09 has been hugely frustrating but surely just on the amount of times mentioned by the BOD of conclusion to negotiations being close to being agreed we must be due some sort of update this week?
Cheers
Always inevitable that we we were going to see a retraction in the share price.
Been a steady increase from 14p in Feb so expect some profit taking.
Who ever is in charge the fundamentals haven't changed, Iofina are a rarity on AIM a company making a decent profit from a ever increasing business that produces product's that are increasing in demand.
Iodine prices will stay strong for the foreseeable future & we will see some great numbers when the preliminary results are released in September.
Roll on I09.
Cheers.