Web Site : http://www.iofina.com/

11th April 2008 Note on IOF : Link to web folder click here

Iofina is the holding company of a group of companies involved in the exploration and production of iodine and natural gas which have been discovered on acreages which the Group acquired, or is currently acquiring, in the state of Montana, USA. The Company has named its discovery the Atlantis Prospect. The natural gas co-exists with formation water containing relatively high levels of dissolved iodide. Iodine is a rare element, which the US currently imports to meet growing domestic demand from pharmaceutical and industrial manufacturers. The leases held by the Group give it the right to explore, drill and produce both iodine and natural gas. The Directors believe that the dual revenue streams of iodine and gas, together with the relatively low cost extraction process, will create an attractive business model with substantial strategic value.

Iofina was incorporated on 15 March 2005 in the UK and registered in England and Wales. In January 2006 the Group acquired the entire issued share capital of Iofina Inc. and its wholly owned subsidiary Iofina Natural Gas Inc., each of which is a Colorado corporation, with the objective of becoming a low cost producer of iodine and natural gas. Iofina Chemical Inc., a Colorado corporation, was created as the specialty chemical division of Iofina Inc. in May 2006. The Groups Atlantis Prospect is located between two of the most significant biogenic gas fields in North America, which have so far produced a total of 6.5 Tcf, valued at over US$50 billion at current prices. Since its incorporation the Group has steadily acquired over 30,000 net acre land position in northern Montana, on which a major aquifer containing natural gas has been discovered in the Eagle and Virgelle formations, sedimentary formations of Cretaceous age lying at depths of 1,000 to 1,500 ft below the surface. This unconventional, shallow natural gas resource can only be produced in conjunction with large volumes of formation water, and consequently the industry has previously struggled to commercialise gas discoveries in the area. The formation water is an unusual sodium chloride brine with high concentrations of iodide but relatively low levels of dissolved salts (approximately 6,500 mg/L), and has no contaminants or hydrocarbons other than methane, thereby reducing processing costs. Iofina intends to produce gas along with water, but to also extract the high levels of iodine which the formation water contains.

In addition to its acreage position, the Group currently owns four pilot wells, an iodine processing facility building and the Iofina Express #1 pipeline which ultimately connects into the TransCanada Pipeline, a major transcontinental gas pipeline serving markets in the north-eastern United States.

tatement from Numis sums it up :-

"We view today's announcement as a positive step in Iofina's evolution, as management focus on maximising returns on both existing and new investments whilst generating positive free-cashflow. Iofina's balance sheet remains robust with sufficient headroom to support the group's operational and capital needs in 2014."

This confirms the feeling I've had about previous management being massively over optimistic with the current CEO and FD struggling to re-introduce normality. The roll out was hugely under estimated as was the cash required. Since they've been there they have had to slow the roll out and cash burn, to get it back to a manageable level.

The operational review buys them some time to get production up and at a consistent level (less down time etc.) and will hopefully make for a more efficient company at year end. Also gives them time to sort out the sales process. I've always been concerned about sales. How they get a customer, manage a big order - they have to commit to delivery and cannot really do this unless they have certainty of production which I'm not sure they have at the moment. With 5-6 plants they should have this so more opportunity to commit and get longer term customers. It's no good just rolling out sites if they are not producing or the product has not been sold.

So I doubt they will need more money now (I hope not anyway), but a long road to recovery imo.

The water permit will produce cash income, it may not be core, but it is important.

Thats another one off 50%.

Iofina output to be materially below market forecasts
StockMarketWire.com
Iofina anticipates that production of crystallised iodine will be around 400 metric tonnes this year - a significant increase over 2013 but materially below current market expectations.

The group says it has recently gained insight into its principal operator's planned fracking scheduling for the next three months. The operator's schedule is expected to significantly reduce the brine supply and as a consequence, plant runtime for IOsorb plants IO#3, IO#4, IO#5 and IO#6 will be affected.

Current indications are that the fracking program will continue through the end of 2014 at levels similar to those projected for the next three months.

Whilst this has a significant impact on current brine supply, the increased drilling is a positive indication of the operator's view to continue expansion, which should bode well for the longer term prospects of the company.

Iofina says plants IO#1 and IO#2 remain profitable are unaffected by fracking schedules and continue to produce iodine as planned.

The group says it has reviewed its production forecasts in light of the above and on the basis that the principal operator's fracking schedule for the three months continues for the remainder of the year, anticipates that production for the current calendar year will be circa 400 metric tonnes of crystallised iodine.

Whilst this is a significant increase over 2013 production, it is materially below current market expectations.

It adds: "In light of this development, steps are being taken to minimise expenses both at corporate and operational level, including curtailing production at IO#5, which is powered by mobile power generation until hard power is installed from the local utility expected in the next 90 days, reduction in staffing to reflect plant down time, reducing production payments to the operator and reviewing mobile plant deployment.

"Such measures are being undertaken to conserve the group's cash position which was $2.3M at the end of March. The company is also working on ways to re-route additional water from the Operator.

"Production for the first quarter was 47 metric tonnes of crystallised iodine and was affected by more fracking than was originally anticipated and extreme winter weather experienced in the location of the plants. Iofina Chemical has enjoyed a good start to the year and has performed ahead of management's expectations."

At 8:27am: (LON:IOF) Iofina PLC share price was -31.75p at 24p

Yesteday it was QPP and today IOF where will it ever end..?

BLNX, BLUR,QPP, IOF - It's a minefield out there at the moment mitzy.

Agree doodle its gone crazy.

Dead cat bounce first thing tomorrow?

re - Dead cat bounce first thing tomorrow?

It has so I bought some at 25.50p, lets see how much is the bounce
took some large profits on another stock, and IOF was a good candidate

the bounce continues now at 28p after 28.75p earlier

Another good start of the day now at 31.50p

Late yesterday ..........

Zak Mir on Iofina, Quindell and coming back from the dead!
Posted on Thursday, April 24, 2014 at 7:44PM

On April 11th I wrote a blog entitled “Back From The Dead” covering a mix of stocks which had come back from the brink, or looked as though they would recovery after taking a pounding… Given that I have been laid low this last few days with a fever and temp of 102f, the title of this blog is thus very apt on all counts!

My selection 2 weeks ago was Quindell (QPP), Iofina (IOF), and Globo (GBO). With the exception of Globo, anybody holding these stocks would likely wish they were six feet under!

I update the theme here with Quindell and Iofina…

Both of these stocks have been veritable private investor favourites over the past year as evidenced by the massive bulletin board commentary on them. Unfortunately, one of my definitions of a private investor favourite means that if you make a negative call on the company you can be quite sure you will either be insulted via social media, or worse, blocked.

The other definition which is key is that most of those investing in such companies do not fully understand just what the business is that they are backing. This point was highlighted to me in a conversation I had in March with a canny young fund manager who gave me a rather downbeat look when I was, I must confess, singing the praises of Quindell (QPP) and its then £2bn market cap. It was the kind of look that you know not to go against, the problem was just the timing as the stock proceeded to climb here. As they say in comedy (another passion of mine, and no not to do with my TA!), “timing is everything!”


Such conundrums are those I thus prefer to answer via charting / technical analysis. Following the “heads up” to keep out of the way, the shares promptly went on to make a new high over 45p! This turned out to be a bull trap double top formation. Keen technical traders might have gone short on a daily or weekly close back below the February 44.6p high, while my preference was to wait for an end of day close back below the 50 day moving average in the 37p zone given the way that the shares had bounced off this feature at the beginning of April. Nevertheless, the message given before the big drop was that if you wanted to play it safe you would only go long of Quindell on an end of day close back above the 10 day moving average then at 39p – as we were in the aftermath of a double top charting sell signal.

As far as the position now is concerned (neck, block!) it can be said that we are looking at a quite typical post rug (no, not my hair!) pulling event situation with the 200 day moving average currently at 22p a pivotal feature. It is also interesting to note the way that on the downside overshoot at the beginning of this week that support came in towards former autumn 2013 resistance on the way up in the 17p region. What we may expect to see now is plenty of gyrating either side of the 200 day line. However, we really need to see a retest of the 17p floor to make for the most ideal entry point and from that zone the stop loss just below 15p would be a strong one, with a decent chance of not being hit in my ‘umble opinion.


Just to give you an idea of how difficult it can be charting these minnows, and perhaps why not everyone might want to get involved with the Wild West (AIM) part of the stock market, we have Iofina (IOF).

Here, the recent rally in the Iodine producer has wilted in a rapid way with the technical explanation being that a bull trap retreat from above the 50 day moving average at 69p was seen as well as a failure at former December support during April.


Given the massive unfilled gap to the downside, in fact the second since December, it would perhaps be safer to suggest that bulls should stand aside on an extended basis. But, for those with risk appetite (masochistic?!), there are a couple of positives to note. The first is the way that there has been a temporary halt in the slide at a line of support from the end of August through 20p. There is also a line of support from January in the RSI window. Both of these could be enough to deliver an intermediate rebound from an extreme oversold position with the RSI under 30. That said, a retest of the logical target – former March support under 50p, does feel like it is ambitious. The stop loss on the bargain hunting argument is as tight as an end of day close below 20p / the 2013 support line.

Good luck all those trading this pair!

going places now 34.50p, the bounce is strong now

note : just noticed the video has paused my typping for a few seconds

2nd best riser of the day so far

LSE % Gainers Top Lists

EPIC - Name -- %

SOU Sound Oil +36%
IOF Iofina +32%
BPC Bahamas +22%

anyone diving into this one might like to contemplate the comment below .....

Just to give you an idea of how difficult it can be charting these minnows, and perhaps why not everyone might want to get involved with the Wild West (AIM) part of the stock market, we have Iofina (IOF).

Here, the recent rally in the Iodine producer has wilted in a rapid way with the technical explanation being that a bull trap retreat from above the 50 day moving average at 69p was seen as well as a failure at former December support during April.


Given the massive unfilled gap to the downside, in fact the second since December, it would perhaps be safer to suggest that bulls should stand aside on an extended basis. But, for those with risk appetite (masochistic?!), there are a couple of positives to note. The first is the way that there has been a temporary halt in the slide at a line of support from the end of August through 20p. There is also a line of support from January in the RSI window. Both of these could be enough to deliver an intermediate rebound from an extreme oversold position with the RSI under 30. That said, a retest of the logical target – former March support under 50p, does feel like it is ambitious. The stop loss on the bargain hunting argument is as tight as an end of day close below 20p / the 2013 support line.

Good luck all those trading

37.50p now

A fool will allways be a fool

and that fool is also a born loser, a stalker following me every where to talk rubish, and a cynic if you have not realised it yet.

what compels you to be so consistently obnoxious?
your response to my posting of a very sensible article from a respected pundit is almost pavlovian in its unwarranted abuse

==============

as an aside, the current L2 book shows bid outnumbering offer 4:1 ..... pays your money, takes your choice

for myself, think i'ld rather hold WMH

Numis, the company's brokers, have reiterated their BUY rating over night.

That's after temporarily pulling it whilst they looked into the situation following the production issue.

Clear confidence post examination there.

Lets put " cynic " were it belongs

were else can you put a cantankerous git

but into the rubbish bin

pavlov would have made you his prize exhibit

No need to bin him panto, he is already there., think just edging off.lol