Iofina PLC Corporate and Production Update (7457D)
11 July 2016 - 4:00PM
UK Regulatory
TIDMIOF
RNS Number : 7457D
Iofina PLC
11 July 2016
11 July 2016
Iofina plc
("Iofina" or the "Company")
(LSE AIM: IOF)
CORPORATE & PRODUCTION UPDATE
Iofina, specialists in the exploration and production of iodine
and iodine specialty chemical derivatives, today provides an update
to the market regarding first half 2016 ("H1") iodine production,
corporate activities in the period and the outlook ahead.
Key Points:
-- Production target achieved - in line with production forecast range of 250-270MT
-- 131 metric tonnes of crystalline iodine produced in Q2 2016 from five IOsorb(R) plants
-- Continued focus to reduce iodine production costs as well as corporate costs
-- Successful agreement of Heads of Terms for the restructuring
of convertible debt and creation of a new USD$10M Debt Facility
-- H1 Iofina Chemical revenues up despite a reduction in the price of iodine
Crystalline iodine production for second quarter 2016 ("Q2") was
131 metric tonnes ("MT") and a total of 255.6MT was produced in the
H1 2016 (294.1MT: H1 2015) from Iofina's five IOsorb(R) iodine
plants. These results are in line with the Company's production
forecast range of 250-270MT. The Board is pleased with H1 2016
production, which has been achieved despite recent higher than
expected diversion of brine for fracking and power outages across
our operating regions due to adverse weather conditions.
Iofina has continued to execute its plan to reduce production
costs. The regulations imposed on Salt Water Disposal ("SWD") sites
marginally reduced the like for like amount of brine processed. As
previously communicated, in light of the current regulatory
landscape, the Company has in conjunction with its partners begun
projects to increase brine availability to its IOsorb(R) plants to
access its partners' main brine pipelines passing near Iofina's
plants. The Company is therefore less dependent on brine flow to
individual SWDs. IOsorb(R) plant IO#4 is currently being adapted to
process additional brine and this is anticipated to be complete
within the next 10 days. Completion of a project to allow for
increased brine processing at IOsorb(R) plant IO#2 is expected to
follow shortly. In co-operation with brine supply partners, the
Company is currently modelling different scenarios at its other
production sites to determine cost versus benefits for Iofina.
Iofina expects to produce between 250-270 MT of crystalline
iodine in H2 2016.
Iofina Chemical has performed well year to date. H1 2016
revenues are up despite a reduction in the price of iodine compared
to the same period in 2015. Iodine prices, while much lower than
historical trends, continue to remain fairly stable and currently
are generally at or below $24/kg for large volume buyers.
On 7 June 2016, the Board was delighted to announce an Agreement
of Heads of Terms to extend its current convertible debt and create
a new USD$10M Debt Facility. The Board remains focused on working
through the underlying details of these agreements with the
Company's debt holders, and is making progress to complete.
Additionally, the Company expected to receive a ruling in Q2 2016
on the Judicial Review of the non-core Atlantis Water Depot water
permit. To date the Company has not received a ruling and it is not
certain when this ruling will be announced.
Commenting, President and CEO Dr. Tom Becker, stated:
"The Board is pleased with production levels at its IOsorb(R)
plants in H1 2016. The Company is making progress to ensure brine
supply to Iofina's plants and Iofina Chemical continues to perform
well against a challenging iodine environment backdrop.
"The restructuring of the convertible debt and creation of a
Debt Facility gives Iofina the means to execute its business plans
in a challenging market and to reap the benefits of a return to
normality for iodine prices."
For further information, please contact:
Dr. Tom Becker, CEO & President
Iofina plc
Tel: +44 (0)20 3006 3135
Christopher Raggett/Giles Rolls/Joanna Scott
finnCap Ltd
Tel: +44 (0)20 7220 0500
Media Contact:
Dominic Barretto/Harriet Jackson
Yellow Jersey PR Limited
Tel: +44 (0)7768 537 739
About Iofina:
Iofina specializes 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
utilizes 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
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