Operational Update

RNS Number : 7372Y

Iofina PLC

29 January 2014

 



29 January 2014

Iofina plc.

("Iofina" or the "Group")

(LSE AIM: IOF)

Operational Update

Iofina, specialists in the exploration and production of iodine and iodine specialty chemical derivatives, today provides the following operational update.

IO#4, IO#5 and IO#6 Construction

Construction of IO#4 and IO#5 is progressing well. The Board is pleased to report that the steel framework has been completed and the towers have been installed at both plants. Current progress indicates a handover to our operations staff for both plants to occur in February with IO#5 expected to follow shortly after IO#4. Plant start-up activities will then begin and are expected to last approximately two weeks, at which time commercial iodine production will commence. Construction of IO#6 is underway, with the concrete pad in place and ready for setting of the steel framework.

IO#2 and IO#3

Production volumes at IO#2 remain consistent. Despite extremely cold weather in the area downtime in December and January has been limited as a result of appropriate planning and proper execution by the operations teams. Iodine production levels at IO#3 are coming in as expected when the volume of brine received from the Operator is as anticipated. However incoming brine volumes have been affected recently due to the Operator's significant fracking and drilling activity in the area, which is affecting overall iodine production levels. The Group is working with the operator to minimise brine volume inconsistencies amidst the ongoing fracking activity and looks forward to updating the market on progress in this respect. The increased drilling is a positive indication of the operator's view to continue expansion and the Company expects newly drilled wells to be tied into existing and planned IOSorb™ locations potentially increasing brine volumes.

Iodine Sales

The Group was encouraged by its first external raw iodine sales in January and will continue to market raw iodine externally as production increases from new plants. January sales for the Group are as planned and order activity is promising.

Please visit the Group's website at www.iofina.com for a range of images from our WET® IOsorb™ plants.

Commenting on today's news, CEO George Lantz, said: "The Board is encouraged by today's update. Against a backdrop of severe weather, the construction of IO#4 and IO#5 located in Oklahoma, are progressing well. We look forward to steadily increasing production as additional plants continue to come on line and we look forward to updating the market on production levels on a quarterly basis. Management continues to expect iodine production during 2014 to be on plan."

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]

Media Contact:

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, 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 iodine production operations in the United States, specifically in Texas, Montana, and Oklahoma. 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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