TIDMIOF
RNS Number : 8401B
Iofina PLC
15 January 2018
15 January 2018
Iofina plc
("Iofina", the "Group", or the "Company")
(LSE AIM: IOF)
Market Update
2017 iodine production target exceeded
Iodine prices rise during 2017
New plant online imminently
Iofina, specialists in the exploration and production of iodine
and halogen-based specialty chemical derivatives, is pleased to
update the market on its 2017 iodine production totals, general
progress and iodine production outlook for H1 2018.
Highlights:
-- H2 2017 crystalline iodine production was 267.5 Metric Tonnes
("MT"), an increase of 22% (H2 2016: 216.6MT), exceeding upward
revised targets
-- 2017 total crystalline iodine production was 503MT, an
increase of 6% (FY 2016: 474.2MT) despite plant IO#3 being offline
for three quarters of 2017 for repurposing
-- Iodine prices increased further in H2 2017 to $24/kg (H2
2016: $20/kg), and continue to edge upwards
-- New plant IO#7 nearly complete and will significantly increase production
-- IO#5 plant being reviewed for potential reconfiguration to improve profitability
-- Iofina Chemical continues to trade strongly in both iodine and non-iodine products
-- H1 2018 production currently forecast at 300-340MT
During H2 2017, Iofina produced 267.5MT of crystalline iodine
from its four operating IOsorb(R) plants located in the state of
Oklahoma USA, a 22% increase from H2 2016. For the year the Group
produced 503MT of crystalline iodine, a 28.8MT increase versus 2016
despite operating with one less plant for approximately three
quarters of 2017. This output slightly exceeded the upward revised
targets published by Iofina in December 2017.
Global Iodine prices in H2 2017 moved higher to approximately
$24/kg for large orders. This represents a significant increase as
iodine prices in late 2016 were at or below $20/kg. Moving into
early 2018, iodine prices have continued to move slightly higher
and the Board expects iodine prices to continue to rise this year,
as current iodine prices remain below historical levels and some
Chilean iodine production has been reduced in 2017. As an iodine
producer and iodine derivative manufacturer, the Group is poised to
benefit from any increase in the sales price of iodine.
The construction of the new IO#7 plant, which is utilizing much
of the assets of IO#3, remains on track to begin production in
early February. The construction of IO#7 has progressed on time and
within budget and is a testament to the accumulated skill,
experience and planning capability that now resides in our
construction and operations teams. Once IO#7 is commissioned, the
Group's daily iodine run-rate will significantly increase and the
overall per unit iodine production costs in 2018 will be lower than
in 2017. The Group's goal of being a lower quartile cost iodine
producer remains a key focus throughout 2018.
A new image of the IO#7 construction progress can be viewed on
the Company's website www.iofina.com or by clicking the link
below:
http://www.rns-pdf.londonstockexchange.com/rns/8401B_-2018-1-15.pdf
As Iofina continues to execute plans to increase production with
greater efficiencies at reduced costs, the Company continues to
investigate options to upgrade our iodine production portfolio. To
that end, Iofina is exploring options for IO#5, which is currently
the Group's highest production cost plant. In conjunction with our
brine supply partner, we are modelling various scenarios and
currently executing field trials to move brine from IO#5 to other
IOsorb(R) plants, potentially increasing production at those plants
while reducing our overall production cost. The Group is exploring
a new additional brine water source at its IO#5 location or
repurposing the plant to another site. We will update the market
once we have concluded our field trials and optimised our 2018
plans. These initiatives continue the Group's long-term goal of
increasing production, while reducing our net production costs.
Other operational improvements at our IOsorb(R) plants are planned
in 2018.
Iofina Chemical performed strongly in H2 2017 as sales of both
iodine and non-iodine halogen based compounds achieved consistently
good results and outperformed internal H2 2017 projections. Iofina
Chemical continues to globally provide high quality products to the
Company's longstanding and new customers, and has developed and
sold new products within our core competency in 2017.
The Directors believe the Company will produce between 300-340MT
of crystalline iodine in H1 2018. Iofina will provide additional
guidance on our iodine production, likely in Q2 2018, as operations
become more normalized once IO#7 comes on-line and has operated for
a period of time.
Commenting, President and CEO Dr. Tom Becker, stated: "The Board
is encouraged by the excellent operational performance achieved in
2017 and the direction in which the Company is heading. We
successfully executed efficiency improvements at current
facilities, which have resulted in the Group exceeding 2017
production targets.
"As we enter 2018, we are continuing to strategically expand
iodine production by bringing IO#7 into production, a plant which
will significantly increase iodine output whilst reducing the
Group's overall iodine production cost. Iofina Chemical continues
to expertly deliver high quality new and existing, niche products
to the global market.
"The outlook for 2018 is positive, and the Group will explore
additional scenarios to improve its production costs and increase
output. The accomplishments achieved last year by our highly
skilled workforce, coupled with the recent increasing iodine
prices, position Iofina for continued growth and success this year
and beyond."
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
Tel: +44 (0)7544 275 882
About Iofina:
Iofina specialises in the exploration and production of iodine,
halogen based 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
production operations in the United States, specifically in
Kentucky and Oklahoma. It is a vertically integrated company,
covering the process from the production of iodine in the field, to
the manufacture of the chemical end-products derived from iodine,
supplying them 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,
and 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
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