REG - Iofina PLC - Q1 2022 and IO#9 Update

IofinaAnnouncement

19/04/2022 07:00

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RNS Number : 5014I  Iofina PLC  19 April 2022

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

 

19 April 2022

 

Iofina plc

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

(LSE AIM: IOF)

 

Q1 2022 and IO#9 Update

 

Iofina plc, specialists in the exploration and production of iodine and
manufacturers of specialty chemical products, today provides an update to the
market regarding its activities during the first quarter of 2022 ("Q1" or the
"Period") and progress on IO#9 plant.

 

Highlights

·    Company experiencing robust demand for iodine and iodine derivatives

·    Current global iodine spot prices have reached $60/kg and above, up
20% since the beginning of the year

·    Production of 103.8 MT of crystalline iodine from our five IOsorb®
plants

·    Finalising terms with new brine supply partner for IO#9 plant

 

Iofina produced 103.8 metric tonnes ("MT") of crystalline iodine from its five
operating IOsorb® plants in Oklahoma in the Period. This production is in
line with the Company's internal budgeted projections for the Period.  Iofina
is on track to achieve its H1 projection of approximately 225-240MT of
crystalline iodine.

 

Recently, two plants experienced lower than expected water supplies due to
saltwater disposal maintenance work undertaken by one of our partners, which
will help to provide more reliable water flow in the longer-term. This
maintenance work is now complete. Encouragingly, the Company has witnessed
increased levels of oil and gas workover activity in its core areas from our
partners, with reinvestment happening in their fields due to the higher oil
prices and stabilised markets.

 

Iodine prices have continued to rise on the back of the ongoing strong global
demand for iodine and iodine derivatives, especially in Asia. Currently,
iodine spot prices are $60/kg and above and the Company projects iodine prices
to remain robust throughout 2022.

 

Iofina is also pleased to report that it is close to finalising an agreement
for the construction of IO#9 with a new brine supply partner. Beyond the
impact of Covid-19, negotiations were further prolonged due to personnel
changes on the partner's side. In order to minimise supply chain impacts, the
effects of inflation and contractor availability, a number of major items have
been ordered, contractors secured, and plans put in place to execute IO#9.
The construction timelines should be similar to the Company's performance on
IO#7 and IO#8. The Company is also evaluating further sites and partners for
future iodine plants.

 

Iofina Chemical's iodine derivatives are in high demand and is currently
working on enhancements to improve efficiencies and increase capacities for
certain iodine and non-iodine products.  Additionally, Iofina Chemical
expects to complete a laboratory upgrade in Q2 that will improve the Company's
R&D capabilities.

 

Lastly, the Group is working with its current lending partner on terms to
extend its Revolving Line of Credit and other items to expedite growth
opportunities.

 

Commenting, President and CEO Dr. Tom Becker, stated: "The market continues to
move in our favour with the ongoing strong demand for our products and iodine
prices rising to $60/kg and above, a trend we expect to continue over the
course of the year.

 

"We are encouraged to see that our oil and gas partners are now reinvesting in
their assets in order to increase production on the back of the higher oil and
gas prices.

 

"We are also pleased to confirm that good progress has been made on IO#9
location and construction. We expect the final agreements to be executed very
soon and we will confirm this to the market as soon it is completed."

 

 

 

Enquiries:

 

Dr. Tom Becker

CEO & President

Iofina plc

Tel: +44 (0)20 3006 3135

 

Christopher Raggett/Tim Harper (Corporate Finance)

Tim Redfern/Barney Hayward (ECM)

finnCap Ltd

Tel: +44 (0)20 7220 0500

 

Media Contact:

Charles Goodwin/Annabel Atkins

Yellow Jersey PR Limited

Tel: +44 (0)7747 788 221

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 specialty chemicals
derived from raw iodine, as well as non-iodine based products for over 38
years.

 

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

 

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