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After exactly one month:
React +50%
Shoe Zone +33%
Yellow Cake -8%
Iofina -15%
Well done Money Week. Shame that IOF is the big dud so far. However, once it is confirmed that the deal for IO9 is finalised and record quarterly sales are announced as the year progresses, I believe that by the end of the year IOF will turn the tables and be top of the list.
I think this sums up the situation perfectly and certainly matches my sentiment.
28/01/2022 Indmin reported Iodine prices still increasing due to demand in Asia, if only they could bump up production we'd be on the way to 20p plus!!!
They have had quite a few last shots from me. Nothing has improved, apart from the debt situation.
Any material increases in figures has absolutely nothing to do with the board. Prices of raw iodine are out of Iofinas control and they should not be applauded for this.
The basic fact of the matter is raw iodine production has continued to slide.
The lack of developing the company continues to be non existent.
The seed fiasco still lays heavy with a lot of shareholders, and so it should.
The continued promises of more regular updates vanishes quickly after they announce it.
Forward looking statements are non existent.
This current board has had all of its chances I feel, for many years, and nothing has changed.
I feel their time is up unless they pull a huge rabbit out of the bag on the next announcement??
I hope at this years AGM the BoD are really held to account as it’s in person. We seem to have a BoD and CEO who are good at operational management, but no good at actually inspiring shareholder confidence, can’t deliver on promises about clarity in RNSs. I feel it is time for them to be given a last shot before some of them have to step down. What do others think? Please note I’ve held IOF since 2012
No rush
Not much can be done if the go ahead given for i09 this week, weathers atrocious.
Probably have to wait a while for next update.
Completely agree with your post Ecclescake. I also haven't had a response either. Maybe we all need to vote them out. Their failed promises, over and over again really has become so much of a bore. If it is obvious to us small shareholders that board need a boot up the bottom, surely it must also be obvious with the bigger holders. Sneller for one.
Sad to admit, but maybe Lance and Tom need to go....or Tom needs to get back in the lab and Lance needs to retire.
I'm still rating this a stonking buy, because the price is far to low.
I have to agree, however I not received a reply to a previous email. Its seams to be taking 2 years to bring a new plant on stream and it appears they are unable to run anywhere near full capacity. It inconceivable there are about to build IO9 on the same formate and expect a better outcome. Tom did promise better communications and I don't think anyone would say he's delivered. The seed fiasco has just turned into an open sore. Any positive aspects of news don't have any facts and finances attached which is just a complete wind-up. Ther just feels like Tom has a bunker mentality brought about by an inability to run a successful business. Unable to maximise the $50 iodine price because of poor production output and slow expansion plans. IO9 news is now a month late. I've lost count of all the rns highlights which about to SFA, fortune 500, plant upgrades, resting IO5, chemical production line upgrades, plus all the failed projects, atlantis field production cancellations, water project, seeds. Maybe Sneller has a plan?
I am finally getting to the point of going over Tom's and writing to Lance. Previous emails from Tom, and broken promises in the RNS's about providing shareholders with regular updates, slow progress on IO9, lack of information on the seed fiasco, continued drops in production, their lack of growth plans, information about the large holders exit.....The list goes on.
I, for one admit that I have been far too patient with the lack of enthusiasm Tom seems to give in video calls, whilst lacking on providing anything about the above lists, and I would seriously urge others to start sending disgruntled emails. This feels that it is being poorly run by somebody that shouldn't be in the position of CEO. Maybe he should be getting back in the lab??
Just some thoughts to get out there.
Posted on Fastmarkets website on 11 January 2022:
‘Contract and spot prices for iodine have increased and market participants describe the conditions as “dramatic” while producers mention buoyant demand for iodine.’
Perhaps IOF could give us a positive update about the latest market prices along with their imminently expected IO9 confirmation.
In the past they have reported late, what difference are you expecting it to make? The board see Banks as a hostile share holder and he probably feels the same so isn't going to play nice.
Southern Rock clearly sold their entire 8.76% shareholding over 2 weeks ago. They should have reported this to IOF within 2 working days. It's now nearly 2 weeks overdue.
For anyone looking for their trades look on the iof.gb.pl site as well. They may be there.
Despite a disappointing RNS, these are still exceptional value. The Iodine price is key, and my assumption is that this will continue to rise. Like you cane toad, I'm looking to add to my existing holding (which I have stopped trading since the dec29th RNS, as this could easily rise 10% in a blink of an eye), and I have no idea what games are being played.
It's disappointing to say the least, but as a comparison, I still think the company is in the best shape it's ever been in. Revenue, Operating Profit and Net Profit have all been trending up consistently for the past 5y, while debt has been reducign for the past 4y. Iodine prices have increased significantly, while guidance is not down that significantly. My guess is they'll be flat or up on last year. H2 might also be better.
I'm planning on adding some more if it dips below a certain level.
IOF should make record profits this year if iodine prices hold up anywhere near current levels in spite of forecast lower forecast production in H1. We should get news of IO9 contract completion shortly which will help production numbers in Q4. Also, oil prices are currently at 7 year highs so it should help their partners step up their investment and drilling and hence their brine production.
Overall, despite some management failings, I think that the prospects for IOF are good as do Newell and Sneller I presume.
The continuing ineptitude is breathtaking, for months we're told the Iodine price is strong and rising and looks to continue. It reaches $50 kilo the plants we have aren't running at capacity IO5 is still idle the next plant is minimum 8 months away, the chemical business is going well, but if the Iodine production is a bench mark who can say how well. Inlight of this doesn't the BOD look top heavy with 4 non exec's.
Drill Rigs have been standing idle last year couldn't they have sunk a well into brine and stuck a super plant on top. It's taking two years to bring a plant on line only to perform poorly. 5 years ago a plant could produce 1000 kilos a day since then we heard about improvements and upgrades, for the 5 plants we have to run at about 30% capacity. Meanwhile they have time to muck about with seeds.
Supposedly they are ment to be improving communication to shareholders instead they've just highlighted how inept they are. If IO9 is with a 3rd party brine supply someone should be considering thier position, because it's proven not to be efficient and often does not work at all. Fiasco
Hello CaneToad,
Yes, two totall inconsistent RNSs, three weeks apart. At the time of the late December RNS, IOF already knew their partners were not delivering brine in sufficient quantities. If that was indeed true, so why not say it at the time? Instead today they mentioned something they had stated in the Summer, that absent being restated in November and or December, led some of us to believe such constraints were no longer an issue.
But there is more to this story, as we thought this was no longer an issue. This is what IOF stated in September at HY results (see RNS): " The second factor was lower brine supply particularly at two of our plants. Due to the pandemic's impact on oil and gas prices, oil and gas partners have not reinvested in their fields (new drilling, workovers, maintenance) at historical rates. More recently, Iofina has become aware that oil and gas operators in our area are beginning to reinvest now that hydrocarbon prices have recovered and stabilised. New drilling has occurred near IO#8 and has positively impacted brine flow to this site. While brine supplies are still lower than expected at two sites, we are optimistic they may improve in the second half. "
So, was IOF economical with the truth then or today? You cannot say the issue is fixed and several months later say it is not...
This is what was stated in 2021 with regard to the production in H1_2021 that due to bad weather came in much lower than the c. 300T projected: "IOFINA added that it will likely achieve first-half production of around 250MT, below the 285-305 MT forecast.
I do hope that the " 225-240MT for H1 2022" is achieved.
Fortunately, selling at $35/Kg. is a lot less profitable than at a price 50% higher, i.e., c. $50/Kg.
But IOF's Board needs to be given the RED CARD by the large shareholders that have bought in recently. Many operational misses in the last few years.
ATB
I'm relatively new to IOF but note a fairly large increase in average daily volumes since the end of dec which suggests to me a small company starting to gain a wider investor base. Still a v small Mcap tho so large swings are expected.
Allthough the reduced target today is unwelcome it is potentially only 10 - 12% decrease and could easily be negated by an increase in the Iodine selling price over the next half year. Not to mention the brine shortages easing and new plants coming on line.
Happy to accumulate here for the med/longer term prospects...
Yeah, I found the wording quite strange. No mention of reduced guidance in the last RNS... then bam!
I can't help but think that somebody is laughing their head off. That's just me though - a bit paranoid.
High volume but in the wrong direction. Not a helpful RNS, but seen it before to help those in the know. Anticipate a more upbeat one on a week or two after mates have loaded up. All in my opinion, and it could be just a fall in production like it said! Who knows? Not me.
Apologies: I should have said: "midpoint of 2022/H1 guidance is a 13.5% reduction on 2021/H2"
Do your own research.
During H2 2021, the Company produced 268.8 metric tonnes ("MT") of crystalline iodine from its five operating IOsorb® plants in Oklahoma, meeting its production target of 260-275MT for the half year. The production figure for the year totalled 518.2MT. IOsorb® plant efficiencies remain strong, however as stated in our 2021 interim report, two plants continue to receive lower brine volumes compared to pre-pandemic levels, due to less reinvestment by our partner in their oil operations. Iofina is aware of future increased spending on oil production wells by our partner as oil prices continue to be robust. The Company has a forecasted production figure of 225-240MT for H1 2022