REG - Iofina PLC - Q4 2023 Corporate Update

IofinaAnnouncement

15/01/2024 07:00

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RNS Number : 6135Z  Iofina PLC  15 January 2024

 

15 January 2024

 

Iofina plc

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

(AIM: IOF)

 

Q4 2023 Corporate Update

FY 2023 Iodine Production up 8% to 559MT

IO#10 plant in progress

 

Iofina plc, specialists in the exploration and production of iodine and
manufacturers of specialty chemical products, today provides a market update
regarding its activities during Q4 2023 (the "Period") and outlines
expectations for 2024.

 

With IO#9 plant operating at an improved production rate in the second half of
Q4 2023, crystalline iodine production across Iofina Resources' six plants
for the last quarter increased year over year by 16% to 160.9 metric tonnes
(MT).

 

Total production during the second half was 317.8MT, which aligned with the
Company's guidance that H2 2023 production would either be at the bottom or
very marginally below the forecast range of 325-350MT. This nevertheless
represents a 13% increase over production of 282.0MT for H2 2022. Total
crystalline iodine production in 2023 was up 8% to 559.3MT, compared to 2022
production levels of 516MT.

 

The iodine spot price softened by circa five percent over H2 2023 towards
mid-to-upper sixties dollars per kilogram as prices have settled from
historically high levels. Moving into 2024, the market fundamentals of the
iodine business remain strong and Iofina currently expects the spot price to
remain at present levels for the foreseeable future.

 

Demand for the Company's crystalline iodine remained robust during the final
quarter, whilst sales of iodine derivatives had mixed results. Regarding
non-iodine products, sales of a key product mainly used in the semiconductor
industry improved significantly in the second half of the year after a
slower-than-anticipated first half.

 

Moving into 2024, Iofina Resources expects to produce 275MT - 295MT
of crystalline iodine during the first half (H1 2023: 242MT), which would
result in a 13% to 22% increase over H1 2023. The Company reiterates that H1
iodine plant production has historically always been lower than H2 production
due to the effect of lower temperatures on production in the winter months,
whereas H2 production benefits from greater output in the warmer summer
period.

 

Encouraging progress has also been made regarding construction plans for IO#10
plant, with groundwork at the site scheduled to commence this week. The
Company expects IO#10 iodine production to commence in Q3 2024 and will update
on progress as appropriate.

 

Negotiations continue to progress well with both current and potential new
brine supply partners for IO#11, and the Company continues to explore options
in its current core area and other new areas for our next iodine production
facilities.

 

In terms of new products, Iofina Chemical will be adding to its iodine
derivatives product range in H1 2024, including an existing product in the
market for which there is strong demand. The Company also expects to increase
sales of its crystalline iodine to customers in Europe in 2024 through
existing and new relationships.

 

The Group is committed to operating its facilities with a safety-first
approach and is proud to report that Iofina has had no lost time incidents
since April 2021.

 

Commenting, President and CEO, Dr. Tom Becker, stated:

 

"In 2023, Iofina continued to execute its growth strategy. Crystalline iodine
production improved year-on-year, with an eight percent increase compared to
2022. Whilst we acknowledge that IO#9 took longer to operate at full capacity
than we initially anticipated, we are happy that the plant is now producing at
expected levels, and we are on track for H1 2024.

 

"Looking ahead, we are progressing with the construction of IO#10 as planned
and we continue to make progress towards agreements for IO#11 and subsequent
future iodine plants in line with the Company's commitment to significantly
increase its iodine production.

 

"The Company's specialty chemical division, Iofina Chemical, continues to
deliver high-quality halo-compounds to the market and is commercialising a new
product for the Group, whilst also developing additional new compounds in
2024.

 

"With continued robust iodine prices, strong demand for the Group's
crystalline iodine, and the ongoing execution of Iofina's growth plans, the
Board of Iofina is confident that the momentum built during 2023 will continue
to drive progress throughout 2024."

 

This announcement contains inside information for the purposes of article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of domestic law by
virtue of the European Union (Withdrawal) Act 2018.

 

Enquiries:

 

Dr. Tom Becker

CEO & President

Iofina plc

Tel: +44 (0)20 3006 3135

 

Nomad & Broker:

Henry Fitzgerald-O'Connor/Harry Rees

Canaccord Genuity Limited

Tel: +44 (0)20 7523 8000

 

Media Contact:

Charles Goodwin/Shivantha Thambirajah/Soraya Jackson

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 celebrated 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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