REG - Iofina PLC - Finalised Terms for IO9 & Q3 Production Update

IofinaAnnouncement

28/10/2022 07:00

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RNS Number : 4131E  Iofina PLC  28 October 2022

This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014

28 October 2022

 

Iofina plc

("Iofina", the "Company" or the "Group")

(LSE AIM: IOF)

 

Finalised terms for IO#9

Q3 Production Update

 

Iofina plc, specialists in the exploration and production of iodine and
manufacturers of specialty chemical products, is pleased to announce that it
has now executed all agreements with a new brine supply partner to construct
its latest IOsorb® iodine plant, IO#9, in Western Oklahoma.

 

This region of Western Oklahoma is an area of significant oil and gas
development with a consequent growing brine supply. The Board believes that
the site provides an excellent location for Iofina's newest plant, which will
employ IOsorb® technology to isolate iodine from the iodine-rich brine stream
which is co-produced during our partner's oil and gas production. Iofina
anticipates expanding iodine production in this region to create a new core
area for the Company and is actively developing plans for a second plant in
this area.

 

To minimise supply chain impacts and expedite IO#9's construction, the Company
pre-ordered major items and secured contractors in advance. The Company will
also relocate the equipment from IO#5 as part of its building plans. The
Company remains mindful of the impact of supply chain issues, but currently
anticipates a construction time of six months, after which Iofina will be
operating six iodine production plants in Oklahoma. Once in operation, IO#9
will immediately contribute to cash flow. Full payback of its costs expected
in less than two years with production of crystalline iodine targeted between
100 to 150 metric tonnes ("MT") per annum.  Additionally, as previously
announced in July this year, Iofina obtained a term loan from its banking
partner to support this project.

 

In the third quarter of this year ("Q3"), at the Company's five IOsorb®
production facilities in Oklahoma, Iofina Resources produced 143.0 MT of
crystalline iodine. This production is in line with the Company's expectations
and Iofina is on track to produce 255-275 MT of crystalline iodine in the
second half of this year.

 

Commenting, President and CEO Dr. Tom Becker, stated: "We are delighted to
have agreed on the terms to construct our newest iodine plant, IO#9, in
Western Oklahoma, enabling us to move forward with our next growth phase. With
our current IOsorb® facilities operating at expected rates, the addition of
IO#9 will deliver a major step change in our overall iodine production.

 

"IO#9's construction will be underway shortly, whilst the relocating of the
decommissioned IO#5 plant will help to both accelerate the project and keep
costs down. The current timeline will see IO#9 online in approximately six
months. We look forward to updating the market on the progress of construction
in due course."

 

Enquiries:

 

Dr. Tom Becker

CEO & President

Iofina plc

Tel: +44 (0)20 3006 3135

 

Christopher Raggett

Tim Redfern/Barney Hayward (ECM)

finnCap Ltd

Tel: +44 (0)20 7220 0500

 

Kingsley Wilson

Chrystal Capital Partners LLP

Tel: +44 (0)20 7850 4761

 

Media Contact:

Charles Goodwin/Laurie Gellhorn

Yellow Jersey PR Limited

Tel: +44 (0)7747 788 221

About Iofina:

www.iofina.com (http://www.iofina.com)

 

Iofina plc (AIM: IOF) is a vertically integrated Company that specialises in
the production of Iodine and the manufacturing of specialty chemical products.
Iofina is the second largest producer of iodine in North America and operates
the manufacturing entities Iofina Resources and Iofina Chemical.

 

LEI: 213800QDMFYVRJYYTQ84

ISIN: GB00B2QL5C79

 

 

Iofina Resources

Iofina Resources develops, builds, owns and operates iodine extraction plants
using Iofina's WET® IOsorb® technology. Iofina currently operates five
producing IOsorb® plants in Oklahoma and is consistently using technology and
innovation to improve and expand its operations.

 

Iofina Chemical

Iofina Chemical has manufactured high quality halogen specialty chemicals
derived from raw iodine, as well as non-iodine based products for over 38
years.

 

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