REG - Iofina PLC - H1 Update and Updated Loan Facilities

IofinaAnnouncement

20/07/2023 07:00

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RNS Number : 5782G  Iofina PLC  20 July 2023

 

 

 

 

 

20 July 2023

 

Iofina plc

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

(AIM:IOF)

 

H1 Update and Updated Loan Facilities

 

Iofina plc (AIM:IOF), specialists in the exploration and production of iodine
and manufacturers of specialty chemical products, today provides an update on
H1 2023 (the "Period") iodine production as well as an update on its loan
facilities.

 

H1 2023 update

 

During the first half of 2023, Iofina Resources produced 241.5 metric tonnes
("MT") of crystalline iodine from its five IOsorb® plants in NW Oklahoma,
within the projected range of 235-250 MT for the Period. This was an increase
of 7.5 MT compared to H1 2022.

 

With IO#9 switched on in June and working through its start-up phases and
concentrating iodide, the Company anticipates a significant increase in H2
2023 crystalline iodine production totalling between 325-350 MT (H2 2022: 282
MT). This estimated production range is larger than normal as IO#9 continues
to ramp up brine intake and is optimising parameters for its crystalline
iodine production. The new plant will be contributing to the Group's total
crystalline iodine production from this month.

 

The Company notes that the required configuration of IO#9 resulted in
additional equipment and installation costs compared to other IOsorb® plants,
which increased total expenditure including reused equipment to $5.5m. Future
IOsorb® plant costs are anticipated to be less moving forward.  Construction
of IO#9 was funded entirely by cash generated from operations.

 

Iofina has continued to see strong demand for its crystalline iodine and
derivative chemical products.   Spot iodine prices have remained steady near
$70/kg throughout the period, with iodine demand for use in X-ray contrast
media and pharmaceuticals applications particularly strong. The Company
expects these price levels to continue through the second half of the year.

 

Loan Facilities

 

The Company has recently renegotiated its undrawn loan facilities, securing a
lower interest rate on agreements arranged last year, as follows:

 

a) The $2.7 million and $1.66 million term loans, which had not been utilized
by Iofina, have been replaced by a $4 million term loan with a drawdown period
open now through to July 1, 2024 to be used for IO#10 expenditures and other
Capex projects as appropriate. A seven-year term begins from July 1, 2024 with
interest payable during the drawdown period.  The interest rate has been
reduced from 2.4% to 2.11% plus SOFR (1 month Secured Overnight Financing
Rate) subject to a minimum 1%.

 

b) The $6 million revolving line of credit has been extended by a year to 16
September 2025. The interest rate has been reduced from 2.4% to 2.11% plus
SOFR subject to a minimum 1%. Iofina is currently not drawing on this line of
credit.

 

 

Commenting on the first half of the year, President and CEO of Iofina Dr. Tom
Becker, stated:

"I'm pleased to report on another successful period, with the completion of
the IO#9 plant being the key milestone of the first half. With the ramp-up of
IO#9 progressing, we are on course to deliver a considerable uplift in
second-half production. Importantly, demand for our products remains high and
we are benefiting from the iodine spot price maintaining its $70/kg level.

 

"Our discussions with prospective partners for IO#10 continue to move forward
and we will provide a detailed update once an agreement has been reached. H1
has progressed well for the Group and the Board is looking forward to the
second half of 2023."

 

 

Enquiries:

 

Dr. Tom Becker

CEO & President

Iofina plc

Tel: +44 (0)20 3006 3135

 

Nomad & Broker:

Henry Fitzgerald-O'Connor/Patrick Dolaghan/Andrew Potts

Canaccord Genuity Limited

Tel: +44 (0)20 7523 8000

 

Financial Adviser:

Kingsley Wilson

Chrystal Capital Partners LLP

Tel: +44 (0)20 7850 4761

 

Media Contact:

Charles Goodwin/Shivantha Thambirajah/Jazmine Clemens

Yellow Jersey PR Limited

Tel: +44 (0)7747 788 221/+44 (0)7983 521 488

About Iofina:

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 speciality chemicals
derived from raw iodine, as well as non-iodine-based products.  Iofina
Chemical will be celebrating its 40(th) anniversary in 2023 as a preeminent
halogen-based specialty chemicals company.

 

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

 

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