Market update

RNS Number : 4073A

Iofina PLC

22 December 2014

 

22 December 2014

Iofina plc

("Iofina" or the "Company")

(LSE AIM: IOF)

Market update

Iofina, specialists in the exploration and production of iodine and iodine specialty chemical derivatives, is pleased to provide an update to the market.

Crystalline iodine production remains on track to meet year end forecasts of 325-350 MT in 2014 and the Company continues to implement operating procedures to improve efficiencies and reduce costs at the IOsorb® plants.  With the recent dramatic drop in oil prices the Company expects to see new drilling in the USA to decline in 2015. However, the Company continues close discussions with operations partners and does not expect any reduction in operations of current oil and gas wells in the Company's operation areas which provide brine to the current IOsorb® plants.  The Company does not expect any material impact of lowered oil prices to iodine production at existing plants. 

The Company is also pleased to announce that the Japanese Patent Office (JPO) has officially issued the Patent to Iofina and we will continue to protect our IP moving forward.  As previously described, this patent is a similar filing to the Company's US patent, which was issued last year, describing the extraction of iodine from a third party oil brine stream located at the brine water injection site.

The Company's Montana water permit (No. 40S 30066181) was under a public notice period through December 1^st 2014.     The Department of Natural Resources and Conservation ("DNRC") of the State of Montana has reviewed objections and determined, at this time, only a portion of one objection is valid.  The other invalid objections points may be resubmitted to the DNRC during December for further consideration.  The objection deemed valid may result in a contested case hearing before a DNRC Hearing Examiner whereby the objector must prove that the permit was preliminary granted in error.  If necessary, the Company will vigorously defend the granting of the preliminary permit and feels that this objection has low risk to the Atlantis Water project, and therefore, the Company is continuing to move forward with this project.

Additionally, beginning on January 1, 2015, the Board intends to resume its previously agreed compensation to those members that were voluntarily suspended earlier this year.

Commenting on today's update, President and CEO Dr. Tom Becker stated:  "I am pleased to report another productive month at Iofina, particularly with regards to iodine production, plant improvements and the Japanese patent. We look towards 2015 with optimism as we continue to work on our strategic review, budgeting and production plans for 2015 and beyond."

For further information, please contact:                                                                                              

Dr. Tom Becker, CEO & President

Iofina plc

Tel: [phone]

John Prior/Rupert Krefting/Paul Gillam

Numis Securities

Tel: [phone]

Rob Collins/Emily Morris/Liz Williamson

GMP Securities

Tel: [phone]

Media Contact:

Dominic Barretto/Anna Legge

Yellow Jersey PR

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 Texas, 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 in Europe, North America and Asia. 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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