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.

Investec target price of 70p always looked way out, double it and it begins to look more realistic - and that's in the short term imo.

http://www.thisismoney.co.uk/money/markets/article-2217977/SMALL-CAPS-FOCUS-High-hopes-Iofina-share-price-rose-300-year.html?ito=feeds-newsxml

Fascinating article on the importance of iodine for anyone who is interested. The article originated in America - where more than one third of the population is obese.

http://www.hotspringsnutritionandnaturalhealingcenter.com/obesity_and_other_ill-effects_from_iodine_deficiencies.html

Share price has just had a short period of consolidation and now looks set to have a go at the next resistance level = 74p - then it's onwards to 83p imo.

doodlebug, this is a solid company and the SP is likely to hit your 83p target soon. Good write up in adv*n

Nearly at that target now, question is how high it will go from here.

doodlebug, good call - £1 before year end?

According to some posters in adv*n, this will be a multibagger in 2013. Doodlebug, looks like we are the only 2 people interested in this stock in MoneyAM!!

UPDATE: Iofina brings second US iodine plant on stream
1:05 pm by Philip WhiterowIofina’s technology extracts iodine from the waste brine created by oil and gas companies.

--adds broker comment--

Broker Investec has raised its price target for Iofina (LON:IOF) following the commissioning of its second Iodine extraction plant.

The new target price of 117p (up from 70p) reflects the de-risking of the rollout and an assumption of $2.86mln of operating cash flow per unit after tax (previously $1.75mln).

The broker also increased its 2013 net income estimate for Iofina from £4.1m to £5m and to £11.6m from £10.2m in 2014.

Iofnia today said that following construction, testing and final hook up, the plant, which is located in Oklahoma and based on Iofina's WET IOsorb technology, had been fully commissioned.

Iofina’s technology extracts iodine from the waste brine created by oil and gas companies. Its plan is to roll out a number of plants across major US oil fields in Texas, California and Oklahoma.

Investec expects a roll out of around 4 units per annum going forward, though it says execution risks remain significant.

Iofina’s expansion plans, as currently envisaged, can be financed internally and without dilution on current cashflow forecasts, said the broker.

The new IO#2 plant will receive its brine input directly from producing wells giving greater certainty as to iodine concentration and higher temperatures, which are typically greater than 40 degrees Celsius.

This also helps yield efficiency for volume throughput, said Iofina.

Investec’s upside case is unchanged at 164p and is contingent on the roll out of up to 16 plants.

The new plant had more automation than the first plant, IO#1, which Iofina said meant it needed more time than expected to program during plant commissioning.

This, along with extreme cold weather conditions and the Christmas period, proved to be challenging, it added and meant commissioning took longer than expected.

The next plant, IO#3, is currently being fabricated with equipment expected early February 2013.

Lance Baller, Iofina’s chief executive and president said: "The board is pleased with the commissioning of the group's second IO#2 iodine extraction plant, which takes Iofina one step closer to becoming a major player in the global iodine market.“

IO#2, which was a retrofit of an existing facility, is larger than IO#1, which is in Texas, and capable of handling 30,000 barrels of brine daily compared to 20,000 barrels per day at the first plant.

Iofina, one of the top performers on AIM last year with a 250% increase, currently today traded at 105.8p, close to its all-time high.


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Iofina (Other OTC: IOFNF - news) : Investec ups target price from 70p to 117p reiterating a buy recommendation.

I feel Investec are conservative with their target - with the roll out of up to 16 plants, the SP will thrash 164p. See adv*n for research and latest news. AIMHO & please DYOR.

Broker targets keep getting demolished!

'Do your own research' quite tricky with Iofina. Market cap is £185mn. If they can achieve operating cash flow after tax of $2.86mn (£1.8mn), then 10 plants will justify the current share price, and 16 would justify a higher price. Of course, we have to keep this in context of them depressing the iodine price if they grow too quickly, I presume? I'm not clear if the plants last for decades, or are shale-field dependent? Is there a big advantage to location? Presumably if the technology works, then one of the big boys will simply scoop up this minnow? Has anyone on this thread met the management? Do you know what their attitude to the business is? Your knowledge and ideas much appreciated.

learning, I'm not allowed to name the bulletin board in question, but I suggest you trawl around the various boards and you will find superg on one of them. There is absolutely not one thing that he doesn't know about this company!

Doodlebug, many thanks, found the thread. Superg quite the man about Iofina. Looks like there's plenty of potential left, although stock likely to see a few days of shake-out after such a fabulous run.

The rise is relentless!

No point in putting a target price on this share any more, it will continue it's upwards journey for years. I wish I had a few more like this and TCG in my portfolio.

waiting for news on the latest IO#3 instalation.

IOF are learning all the time and making improvements to the process.

Well done on these d4 nearly another 9% today.Iofina PLC (IOF:LSE) set a new 52-week high during today's trading session when it reached 206.00. Over this period, the share price is up 366.47%.

Thank you dreamcatcher, I'm doing some top slicing on this today. Never fall in love with a share as the saying goes.

Bit premature for me to take profits just yet.
I am looking to top up, but the dips come and go too fast.

This is long term hold - many in adv*n expect the SP to exceed £10 before end 2014. Some are comparing this to ASC and the story so far is very promising. Got rid of most dogs last December to invest here and currently my top holding.