Iofina PLC Production update (2741B)
03 April 2017 - 4:00PM
UK Regulatory
TIDMIOF
RNS Number : 2741B
Iofina PLC
03 April 2017
3 April 2017
Iofina plc
("Iofina" or the "Company")
(LSE AIM: IOF)
Production update
Iofina, specialists in the exploration and production of iodine
and iodine specialty chemical derivatives, today provides an update
to the market regarding its current iodine production and
outlook.
Recently the Company was notified that the injection volumes at
the Salt Water Disposal Well ("SWD") operated by our partner at the
site of IOsorb(R) plant IO#3 will be reduced. This will impact the
availability of brine to our IO#3 plant. In response to this issue,
Iofina is working with our partner to investigate alternative brine
supply opportunities at this location. In addition to alternative
brine delivery options at the existing location, the Company is
also analysing reutilization of IO#3 resources at new sites within
our core iodine production area. Iofina's exploration program has
researched several potential sites that the Company believes will
deliver iodine rich brine streams.
IO#3 in 2017 has been our lowest iodine producing IOsorb(R)
plant with relatively high production cost. Location of these
resources at one of the new sites the Company is investigating
would be expected to significantly increase iodine production and
lower our per kilo cost.
After reassessing the currently anticipated 2017 performance of
all our plants, the Company has concluded that the reduction of
brine at IO#3 will have only a small impact on the Company's
forecast production. Accordingly, the Company now expects to
produce between 215-230 MT of crystalline iodine in H1 2017.
Additionally, the Company anticipates that this reduction in
available brine will have little impact on the Company's planned
net cashflow. Iofina will update the market accordingly once we
have analysed options and finalized plans for utilization of
IO#3.
Commenting, President and CEO Dr. Tom Becker, stated:
"The reduction in available brine at IO#3 is likely to provide
opportunities for us to source an alternative brine supply at the
current location or it will accelerate our plans for a new iodine
production location. Execution of plans to produce iodine at a new
location would lead to increased iodine output rates versus the
Company's production rate at the end of 2016, and reduce the
Company's overall iodine production costs. We look forward to
updating the market once plans are finalised. "
Enquiries:
Dr. Tom Becker, CEO & President
Iofina plc
Tel: +44 (0)20 3006 3135
Christopher Raggett/Giles Rolls/Emily Morris
finnCap Ltd
Tel: +44 (0)20 7220 0500
Media Contact:
Charles Goodwin/Harriet Jackson
Yellow Jersey PR Limited
Tel: +44 (0)7544 275 882
About Iofina:
Iofina specialises in the exploration and production of iodine,
iodine specialty chemical derivatives and produced water. Iofina's
business strategy is to identify, develop, build, own and operate
iodine extraction plants currently focused in North America based
on Iofina's WET(R) IOsorb(R) technology. Iofina has operations in
the United States, specifically in Montana, Kentucky and Oklahoma.
It has complete vertical integration from the production of iodine
in the field to the manufacture of the chemical end-products
derived from iodine to the consumer and the recycling of iodine
using iodinated side-streams from waste chemical processes. Iofina
utilises its portfolio of patented and patent pending technology,
proprietary methods and trademarks throughout all business
lines.
www.iofina.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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