REG - Iofina PLC - Q4 2024 Update

IofinaAnnouncement

23/01/2025 07:00

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RNS Number : 3668U  Iofina PLC  23 January 2025

23 January 2025

 

Iofina plc

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

(AIM: IOF)

 

Q4 2024 Corporate Update

Record Full Year 2024 Iodine Production & IO#11 On Track

 

Iofina plc, specialists in the exploration and production of iodine and
manufacturers of specialty chemical products, today provides a brief update
regarding its activities during Q4 2024 and an outlook for 2025.

 

In Q4 2024, Iofina Resources produced 194.1 metric tonnes (MT) of crystalline
iodine from its seven IOsorb® plants in western Oklahoma, a Q4 record for
Iofina. Iofina's seventh operating plant, IO#10, has achieved full iodine
production from September 2024.

 

The total H2 2024 production of 358MT was within our forecast range. When
combined with H1 2024 crystalline iodine production of 276.1MT, total
production for the year was a record for the Company, up 13.4% to 634.1MT
compared to 2023 production of 559.3MT.

 

The Company has benefitted from a strong spot raw iodine price in excess of H1
2024 levels and is currently above $70/kg. Prices are anticipated to remain at
these higher levels throughout H1 2025 due to the continued robust global
demand for iodine. IPBC product sales have performed particularly well for
Iofina Chemical in 2024, significantly surpassing 2023 levels, driven by
strong interest from customers.

 

In December 2024, confirmed sales of more than $2.0m, which had been
dispatched to customers from the Iofina Chemical facility, were unexpectedly
delayed due to cargo shipping and logistical issues beyond the Company's
control. In line with the Group's accounting policies, these orders will now
be credited as sales in January 2025. Consequently, the Group expects to
report adjusted EBITDA for 2024 in the region of $7.5m, below the forecast
range of $8.5m-$9m. The Company projects that without these unexpected delays,
the Group would have met its forecasted adjusted EBITDA target range. The
recognition of delayed sales in January 2025 has given the Group a stronger
start to the year than previously forecast.

 

With IO#9 and IO#10 operating as expected, along with the legacy plants, we
are forecasting total iodine production for H1 2025 in the range of
320MT-355MT (H1 2024: 276.1MT). The Group notes that, as usual, production
will be weighted to the second half when warmer brine water temperatures and
larger brine volumes improve efficiencies and total iodine output.

 

The Company's growth strategy remains firmly on track. Construction has begun
for IO#11 in Iofina's newest core area, with the initial land work underway
and major components in the process of being supplied. The plant is expected
to be completed and operational in Q3 2025. Preliminary discussions regarding
IO#12 are progressing positively, further demonstrating the Company's
commitment to expanding and accelerating its production capabilities.

 

Finally, the Group continues its proud record of ensuring a safety-first
approach throughout its operations and reports that it has had no lost time
incidents since April 2021.

 

President and CEO, Dr. Tom Becker, commented:

"The Company, as expected, achieved record iodine production in 2024. Our
business operations have gone from strength to strength throughout 2024 with
the successful completion of our new plant IO#10, which is operating as
expected, as well as strategic investment at Iofina Chemical. With the
foundations for IO#11 currently being laid, we are on track to complete
construction in Q3 2025. At the same time, we are making good progress in
finalising plans for IO#12. These developments highlight our ongoing focus on
rapidly executing our growth strategy in a prudent fashion.

 

"Whilst the December shipping delays to customers were certainly frustrating
in terms of hitting our year-end earnings target, we are pleased with the
Group's overall performance in FY24. These delayed sales have been recognised
in January 2025, which underpins our forecast for 2025. With iodine prices
currently above $70/kg, and expected higher iodine production compared to
2024, the current outlook for the year is very promising."

 

 

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:

 

Iofina plc

Dr. Tom Becker

CEO & President

Tel: +44 (0)20 3006 3135

 

Nomad & Broker:

Canaccord Genuity Limited

Henry Fitzgerald-O'Connor/Harry Rees

Tel: +44 (0)20 7523 8000

 

Financial PR and Media Contact:

Yellow Jersey PR Limited

Charles Goodwin/Shivantha Thambirajah/Zara McKinlay

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 operates seven IOsorb®
plants in Oklahoma and consistently uses 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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