Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
For some years Chilean iodine producer SQM ( probably the world's largest producer and historically the lowest cost producer ) has been selling iodine at low prices so as to force competitors out of business. They have been able to do this because they have been making substantial profits from their lithium operations. Those lithium operations are essentially a joint development with a Government agency, and SQM is now being accused of breaking several of the terms of that joint development agreement. SQM is likely to be subject to some sort of recrimination, they could even lose their lithium rights. That probably will not happen, but whatever the outcome it is more likely than not that in the future SQM will not be allowed to make such large profits, and therefore will look to recoup lost profits from other areas of their operations. Clearly one possibility is that they will take the brakes off the iodine price and allow it to rise to a more normal level of say $35 a kilo. This would be massively positive for Iofina, particularly as their new plants now have lower costs of production than SQM. If Iofina could roll out more new plants ( and obviously this would require financing ) then they have the opportunity to become a truly global force in the world iodine industry. The current market cap of the company would then look like an absolute bargain.
Interesting comments over on the ADVFN board this evening re developments concerning Chile's principal iodine producer, a Company that is generally credited with having forced the price of iodine down over the past few years.
If the rumoured broker road show takes place then I think that we will see mid 20s very quickly. After all this is so far off the institutional radar screens, and the Board now have a good story to tell, so a bit of clever financial PR could go down very well indeed. Meanwhile any day now we might get a leg up if Ind Min report a further strengthening in the iodine price. Report could come tomorrow or, alternatively, next Friday.
If the increase in output materialises, combined with a bull market in iodine prices ( long overdue ), then we could be talking about a share price in excess of 50p on a two year view. Therefore if it rises 2 or 3 p on Monday then I would not say that you had missed the boat!
Tom's interview on Proactive Investor site yesterday is well worth watching. If we had a run in the Iodine price ( and let's face it, the price is still very near its lows ) , then this increase in capacity could prove to be a master stroke with very positive implications for the share price. Followers would be well advised to keep watching IndMin's regular pronouncements on the iodine price.
BarcelonaBill, you clearly have not read the company's delisting RNS thoroughly, because it makes it quite clear that should the vote be in favour of delisting then the listing will continue up to and including 26th June. Why you think that the shares will be suspended tomorrow is beyond me!
PhatStyle4321, despite my repuesto you never produced any firm evidence to support your earlier claim that the price of iodine was beginning to rise. Comments such as "looks like market is taking another pause before the outbreak, history is repeating itself" have nil value if not supported by real evidence. I don't know about all the other people who follow these boards, but ,speaking for myself, I only look in so as to increase my knowledge of the companies in which I am invested. So far your comments do not strike me as being particularly knowledgeable, but why not rise to the challenge and prove me wrong!
Yes, I had already heard that Cosayach had started to cut back production, and yes common sense suggests that this should ultimately bring about a rise in the price of iodine, but PhatStyle 4321 said that iodine prices were actually rising as of NOW, indeed he even said they were SPIKING, and yet I cannot find any evidence of this. Is he a. Being over optimistic. b. A complete bullshitter. c. Or perhaps he really does know more than the rest of us. So, come on PhatStyle 4321, tell all, now is not the time for discretion !
Twice now you have made reference to a rising iodine price, PhatStyle4321, but so far you have not enlightened us as to where you have derived this information from. Do please explain because I have searched far and wide for any evidence that the price of iodine is rising and so far I have come up with nothing. Certainly I do believe that it should soon begin to rise because clearly some producers will have to start to curtail production, but that is not the same as saying that there is hard evidence that it has actually begun to rise. Looking forward to your reply.
With respect, bigpro, his stake in Iofina is well known in the market, and certainly has been the subject of much comment on the ADVFN Iofina bulletin board, if not on this bulletin board. Over on the ADVFN board posters generally have speculated that he has been the mysterious big seller who has kept a lid on this price for some months now. There have been no disclosures, but then again not everybody plays by the rules !