Iofina PLC Market update (6703R)
18 June 2018 - 4:00PM
UK Regulatory
TIDMIOF
RNS Number : 6703R
Iofina PLC
18 June 2018
18 June 2018
Iofina plc
("Iofina", the "Group", or the "Company")
(LSE AIM: IOF)
Market Update
Iofina, specialists in the exploration and production of iodine
and halogen-based specialty chemical derivatives, today provides an
update to the market regarding its activities including iodine
production forecasts and a preliminary determination of a trade
case involving Iofina produced Hydriodic Acid.
The Company expects to produce 575-605 metric tonnes ("MT") of
crystalline iodine in the full year 2018 from its four currently
operating IOsorb(R) plants. This compares with last year's total
production of 503MT. This full year total is in line with analyst
predictions in the market. This significant year-on-year increase
is a result of the start of IO#7 which is producing at a much
greater rate since it opened in mid-February than its predecessor
IO#3 with other plants performing as expected. This total also
assumes no contribution from IO#5 for 2018. Iofina expects to
produce 260-265 MT in H1 and 315-340 MT in H2 of its IOflo(R)
crystalline iodine. Additionally, spot prices continue to
strengthen for iodine and are at or above $25/kg for large volume
purchases.
Separately, on June 16(th) 2018 there was a preliminary
determination from China's Ministry of Commerce ("MOFCOM")
regarding an Iofina Chemical product, namely Hydriodic Acid ("HI").
Iofina Chemical has produced and imported HI into China for over 15
years and HI is used in a catalytic process to produce acetic acid.
In the fall of 2017, Iofina and other foreign suppliers of HI into
China were accused of dumping HI by a relatively new Chinese HI
manufacturer claiming sales of HI below market value. Iofina
Chemical refutes this claim has been fully cooperating with MOFCOM
officials and has provided information to show Iofina was not
dumping HI into China. The preliminary determination from MOFCOM
concluded there was dumping by Iofina Chemical and the other HI
manufacturers from the USA and Japan and preliminary dumping duties
of 118.8% and 41.1% have been imposed with immediate effect against
USA and Japanese importers respectively. Iofina believes this
preliminary determination and the tariff imposed is incorrect and
will investigate all means to reverse this decision before the
final determination in the autumn of this year. Given the recent
deterioration of the USA-China trade relationship, the conclusion
on the matter is unclear. Whilst not completely certain, based on
potential loss of sales of HI in the second half of 2018, we are
currently calculating a small negative effect on profitability of
slightly over one hundred thousand dollars from our current
expectations in 2018.
Commenting, President and CEO Dr. Tom Becker, stated:
"Our IOsorb(R) plants are performing well and we are pleased
that our expected production of near 600MT of crystalline iodine in
2018 is in line with analyst predictions in the market. The
production from IO#7 has resulted in a lowering of our total per
unit iodine production costs and this coupled with higher iodine
prices and an increase in year-on-year production are all positive
for Iofina's profitability
The preliminary determination in the hydriodic acid anti-dumping
inquiry in China is extremely disappointing. We continue to refute
these claims and will investigate and pursue all options to remedy
the situation."
Enquiries:
Iofina plc
Dr. Tom Becker, CEO & President
Tel: +44 (0)20 3006 3135
finnCap Ltd
Christopher Raggett/Giles Rolls/Camille Gochez
Tel: +44 (0)20 7220 0500
Media Contact:
Yellow Jersey
Charles Goodwin/Harriet Jackson
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
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END
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