REG - Iofina PLC - Signed Agreement for IO#10 and Q3 2023 Update

IofinaAnnouncement

20/10/2023 07:00

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RNS Number : 7348Q  Iofina PLC  20 October 2023

20 October 2023

 

Iofina plc

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

(AIM:IOF)

 

Signed Agreement for IO#10 and Q3 2023 Update

 

Iofina plc, specialists in the exploration and production of iodine and
manufacturers of specialty chemical products, is pleased to announce that it
has now signed an agreement with a new brine supply partner to construct its
latest IOsorb® iodine plant, IO#10, in Western Oklahoma.

 

This region of Western Oklahoma is an area of significant oil and gas
development, with an established growing brine supply. The IO#10 plant will be
situated within the same core area as IO#9, adjacent to a key junction in our
partner's water gathering system. The Board believes the site is an excellent
location for the new plant, which will deploy IOsorb® technology to isolate
iodine from the iodine-rich brine stream.

 

The Company is already working with its new partner on the design elements to
deliver the maximum brine at the IO#10 site. The new plant will be financed
through the Company's existing cash and loan facilities. The Board expects the
initial work of IO#10 to commence in Q4 2023, and for brine water to flow
through the plant near mid-year 2024. A more specific construction timeline
will be shared with the market as appropriate. The design and production
capacity of IO#10 is expected to be broadly comparable to that of IO#9.

 

Q3 2023 Update

 

Iofina Resources produced 156.9 metric tonnes (MT) of crystalline iodide
during Q3 2023 (2022: 143 MT) from its six IOsorb® plants in western Oklahoma
including maiden contribution from IO#9. As previously stated at the time of
the Company's interim results, the ramp-up of IO#9 has proven to be more
difficult than anticipated as Iofina works with its IO#9 partner and their
water-gathering system to optimise iodine production. This has taken longer
than anticipated but the Company is starting to see output at IO#9 increase
through October. As such, second half production is trending towards the lower
end of our forecast of 325-350 MT. The Iodine market remains robust, with spot
prices typically in the upper sixties to seventy dollars per kilogram.

 

President and CEO, Dr. Tom Becker, stated: "We are delighted to have agreed on
the terms to construct our newest iodine plant, IO#10, in Western Oklahoma,
with a brand-new partner, which quickly follows the completion and switch on
of IO#9. IO#10 will deliver a further step change in our iodine production and
will be another milestone in our growth strategy, whilst planning and
discussions for IO#11 continue to progress.

 

"The Company continues to experience strong sales, supported by the ongoing
robust iodine prices. Whilst the ramp up of IO#9 has taken slightly longer
than planned, we are working closely with our partner to increase water
volumes to the new plant, and we are starting to see an increased output
through October. The Company will provide a further update on progress in due
course."

 

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 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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