Production Update

RNS Number : 9740R

Iofina PLC

18 September 2014

 

September 18, 2014

Iofina plc

("Iofina" or the "Company")

(LSE AIM: IOF)

August Production Update

Iofina, specialists in the exploration and production of iodine and iodine specialty chemical derivatives, today updates the market on its production during the month of August and its year end production forecast at its IOsorb® plants.

During the month of August, the Company reports that it produced 23.6MT of crystallized iodine compared with 24.5MT in July. A combination of factors including continued fracking, unanticipated design changes at IO#5 and IO#6, and a Salt Water Disposal (SWD) site upgrade by an operator that took longer to complete than forecast resulting in plant downtime, contributed to a decrease in production. These factors had a short-term negative effect on production, with production beginning to normalize in this last week. 

All six of the Company's IOsorb® plants are now in operation and producing crystallized iodine, and are expected to produce circa 25-30MT in September with increased exit rates moving forward.

The Company has also reviewed its production forecasts for 2014.  In light of current fracking schedules, delays in the start of production at IO#5 and IO#6, and lower water volumes after the SWD site upgrade, Iofina anticipates that its overall 2014 crystallized iodine production will be circa 325-350MT of crystallized iodine.  This represents close to a 2-fold year over year production increase but is below current market forecasts and managements targets.

While the iodine markets continue to remain challenging, Iofina has seen strong demand for its iodide derivatives, due to complete vertical integration and a strong product offering, resulting in the Company's revenues through to September anticipated to surpass the total sales for all of 2013. 

Commenting on today's update, President and CEO Dr. Tom Becker stated:  "Whilst iodine production year to date has been below our expectations, we are encouraged that iodine production moving forward will show a favourable trend as these new short term items are rectified.  We are focused on increasing the output of our current IOsorb® plants which will reduce our cost per kilo."

For further information, please contact:

Dr. Tom Becker, President and CEO

Iofina

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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