Corporate Update

RNS Number : 1092M

Iofina PLC

18 January 2016

 

18 January 2016

Iofina plc

("Iofina" or the "Company")

(LSE AIM: IOF)

Corporate Update

Annualised iodine production increase of over 73%

Iofina, specialists in the exploration and production of iodine and iodine specialty chemical derivatives, today provides an update to the market regarding record crystalline iodine production totals in 2015.

During the period, Iofina produced a total of 569.1 metric tonnes ("MT") of crystalline iodine (2014: 327.7MT) from its IOsorb® plants.  Although the Company experienced power outages at its IOsorb® plants and at its partners' operations due to adverse weather conditions in late December, resulting in a loss of anticipated production of about 5-7MT of crystalline iodine in the month, the Board is pleased with the like-for-like increase of over 73% of crystalline iodine from our IOsorb® facilities in its core area in Oklahoma.

As previously stated, restrictions of particular Salt Water Disposal wells ("SWD") due to seismic activity has marginally impacted the Company's total brine supply.  The Company is developing alternatives to mitigate risk associated with potential future restrictions of individual SWDs.  The Board's aim is to not only limit risk exposure, but increase the available brine supply to Iofina's IOsorb® plants.  Iofina is working with its partners on strategic plans to reduce risk and potentially expand brine supply and the Board looks forward to updating the market in due course.

Under current operating conditions, Iofina expects to produce 250-270MT of crystalline iodine in H1 2016 from its five existing IOsorb® plants. This production estimated range is based on the current injection restrictions at certain sites. Again, the Company is working closely with its partners to mitigate and possibly eliminate these flow restrictions.

Iofina continues to consume a large amount of its produced iodine through its halogen derivatives division, Iofina Chemical ("IC").  Iodine use at IC was at record levels for the Company in 2015. The Company is encouraged to report that it has successfully marketed and sold significant quantities of IOsorb® produced iodine into the global market place.  In line with other commodities in the global market, the price for iodine has continued to soften.  Iodine worldwide is generally sold in US Dollars.  The strengthening of the US Dollar versus other global currencies has further impacted iodine pricing.

In order to manage the impact of these extraneous fluctuations, the Company has successfully cut expenses, reduced production and corporate costs and continues to investigate additional cost cutting measures. These measures are expected to protect the Company's cash position and have a positive impact on the Company's gross margins for the current financial year as it moves toward cashflow positive operations.

Commenting, President and CEO Dr. Tom Becker, stated: 

"While the Board is encouraged by the sizeable year-on-year iodine production increase and overall operational gains, with the backdrop of an uncertain capital markets and commodity climate, 2016 will be a year of prudency and value protection. The Company remains focused on seeking out ways to streamline efficiencies and mitigate risk, while expanding production at its current plants and future operations." 

For further information, please contact:                                                                                              

Dr. Tom Becker, CEO & President

Iofina plc

Tel: [phone]

Christopher Raggett/Giles Rolls/Joanna Scott

finnCap Ltd

Tel: [phone]

Media Contact:

Dominic Barretto/Harriet Jackson

Yellow Jersey PR Limited

Tel: [phone]

About Iofina:

Iofina specializes in the exploration and production of iodine, iodine specialty chemical derivatives and produced water. Iofina's business strategy is to identify, develop, build, own and operate iodine extraction plants currently focused in North America based on Iofina's WET® IOsorb® technology. Iofina has production operations in the United States, specifically in Montana, Kentucky and Oklahoma. It has complete vertical integration from the production of iodine in the field to the manufacture of the chemical end-products derived from iodine to the consumer and the recycling of iodine using iodinated side-streams from waste chemical processes. Iofina utilizes its portfolio of patented and patent pending technology, proprietary methods and trademarks throughout all business lines.

www.iofina.com

 

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