REG - Iofina PLC - Market Update

IofinaAnnouncement

09/01/2023 07:00

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RNS Number : 0109M  Iofina PLC  09 January 2023

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS DEFINED IN ARTICLE 7 OF
REGULATION (EU) NO 596/2014 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL OF
16 APRIL 2014 ON MARKET ABUSE (MARKET ABUSE REGULATION) AS RETAINED AS PART OF
UK LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 AS AMENDED.

 

9 January 2023

 

Iofina Plc

("Iofina" or the "Company")

(AIM: IOF)

 

Q4 2022 Corporate Update

 Iodine Production Exceeds Forecast and IO#9 on Track

 

Iofina plc, specialists in the exploration and production of iodine and
manufacturers of specialty chemical products, today provides a brief update to
the market regarding its activities during Q4 2022 (the "Period").

 

The Company continued to perform well during the Period, with Iofina Resources
producing 139 metric tonnes (MT) of crystalline iodine from its IOsorb®
iodine plants in Oklahoma, taking H2 2022 production to 282MT, which was ahead
of the H2 upper forecast range of 255-275MT. In total, Iofina Resources
produced 516 MT of crystalline iodine in 2022.

 

Demand for the Company's products remained strong in the Period, particularly
crystalline iodine, our iodine-based biocide and our fluorine-based etchant
gas. The iodine spot price moved up from $50/Kg at the start of the year and
remained at approximately $70/Kg towards the end of 2022.  The Company
expects prices to stay at these levels as it moves through the early part of
2023, with global supply continuing to be tight.  The Company's sales
channels remain robust which is encouraging as the Company executes its iodine
production expansion plans.

 

Since signing the partner agreement for IO#9 during Q4 2022, Iofina Resources
has worked quickly to bring materials and the construction team on-site to
commence construction. The Company can confirm that work is progressing as
anticipated and the new plant is on track with an expected start-up later in
Q2 2023.

 

The Company is also continuing to work on other growth projects and is in
advanced dialogue with potential oil and gas partners to supply brine water
for its next plant, IO#10. Negotiations continue to progress positively in
line with Iofina's commitment to achieve further expansion of iodine
production capacity in the short term. The Company will provide a further
update on developments in due course.

 

Looking ahead, Iofina Resources expects to produce 235-250 MT of crystalline
iodine during H1 2023, solely from its five existing plants (H1 2022: 234 MT).
The Company notes that H1 Iodine production has historically always been
slightly lower compared to H2, and is primarily due to much lower temperatures
in the winter months.

 

On the current timetable, IO#9 is expected to make an additional small
contribution in H1, which the Company will update on once the plant is
operational and production commences. Iofina anticipates the new plant will
produce 100-150MT of crystalline iodine per annum.

 

Commenting, President and CEO of Iofina Dr. Tom Becker, stated: "Iofina had a
strong end to 2022, with H2 iodine production surpassing our initial target
and product sales remaining robust.  As such, the Company is pleased with the
expected outturn of its business in 2022.

 

"Looking ahead, with brine water supplies to our plants consistent and IO#9 on
track for completion and start-up in Q2 2023, Iofina Resources will have the
capacity to deliver a significant increase in crystalline iodine production
going forward. Market dynamics for raw Iodine remain very favourable and
coupled with the demand for our specialty products, the Board of Iofina is
confident in the current outlook for the new year."

 

Construction images of IO#9:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Enquiries:

 

Dr. Tom Becker

CEO & President

Iofina plc

Tel: +44 (0)20 3006 3135

 

Nomad & Broker:

Henry Fitzgerald-O'Connor/Patrick Dolaghan

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

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 will celebrate
its 40(th) anniversary in 2023.

 

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

 

 

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