Market update

RNS Number : 2955D

Iofina PLC

27 March 2014

 

27 March 2014

Iofina plc

("Iofina" or the "Group")

(LSE AIM: IOF)

Completion of IO#5 Iodine Extraction Plant

IO#6 on Track for Completion in Q2

Mobile Units Planned

Water Project Update

Iofina, specialists in the exploration and production of iodine and iodine specialty chemical derivatives, is pleased to announce that the construction of the Group's IO#5 iodine extraction plant, based on Iofina's WET® IOSorb™ technology, is now complete and under the control of Iofina's operation team. IO#5 is located in the vicinity of the Group's IO#2, IO#3 and IO#4 iodine extraction plants.

Following operator approval, the Board reports that IO#5's tie-in to the well operator is also complete, with production staff in the process of both hydro-testing, prior to the acceptance of brine water, and in-line automation systems testing.

Production of iodine for both IO#4 and IO#5 is conditional upon final regulatory inspection and approval. The inspection occurred on 14 March 2014, with approval expected shortly. Construction of IO#6 continues, with completion expected to occur in Q2 2014. Images relating to IO#6's progress can be viewed at www.iofina.com.

Following the commissioning of IO#6, Iofina will have built four similar purpose facilities in addition to IO#1 and IO#2. The Board is of the view that, prior to work commencing on further full scale plants, an operational review be undertaken. This review, scheduled for completion in the autumn, will include considerations for improvements to construction methodology, reduction in total cost, improvement in time to complete, and optimal plant sizing. Construction of further full size plants will be delayed until this review is complete which will reduce short term capital expenditures and improve cash flows. Operational teams continue to focus on maximizing the performance of all existing plants. The Board believes there is overwhelming evidence that the Group's WET® IOSorb™ technology patented process has proven itself to a high level.

Subject to completing minor design modifications, the first two mobile units or mini WET® IOSorb™ technology plants (namely 'IOA' and 'IOB') are planned to be ordered throughout 2014 on a turnkey basis for operational deployment in the fourth quarter. The Group has some very high parts per million (ppm) but low brine volume sites where the units can be economically deployed. The Group is highly encouraged by the potential returns of the mobile units and envisages further mobile unit installations in 2015.

The Group will give an update on its first quarter when it releases its results for the year ended 31^st December 2013, scheduled for the week commencing 21^st April.

On our non-core water project, the Group submitted the requested information to the Montana Department of Natural Resources and Conservation.  The Group views our response as satisfying the raised objections and awaits comment from the regulatory board. 

Commenting on today's update, Iofina's CEO George Lantz commented:

"The completion of IO#5 solidifies Iofina's capabilities of constructing and operating multiple plants simultaneously. With the completion of IO#4 and IO#5, the addition of IO#6 and implementation of our mobile strategy, Iofina continues to advance as a major player in the iodine market."

For further information, please contact:

George Lantz, CEO

Iofina plc

Tel: [phone]

www.iofina.com 

John Prior/Rupert Krefting/Huw Jeremy

Numis

Tel: [phone]

Rob Collins

GMP Securities

Tel: [phone]

Dominic Barretto/Anna Legge

Yellow Jersey PR Limited

Tel: [phone]

About Iofina

Iofina specializes in the exploration and production of iodine, iodine specialty chemical derivatives, produced water and natural gas. 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 iodine production operations in the United States, specifically in Texas, California, Montana, Oklahoma and Wyoming. The Group 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 in Europe, North America and Asia. The Group utilizes its portfolio of patented and patent pending technology, proprietary methods and trademarks throughout all business lines.

 

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