16 April
2024
Iofina plc
("Iofina", the "Company" or the "Group")
(AIM:
IOF)
Q1 2024 Corporate
Update
IO#10 on
Track
Renewal of Iodide Rich Brine
Water Supply Agreements
Iofina plc, specialists in the
exploration and production of iodine and manufacturers of specialty
chemical products, today provides a brief
update to the market regarding its activities during Q1 2024 (the
"Period").
The Company continued to perform as
expected during the Period, with Iofina Resources producing 123.7
metric tonnes ('MT') of crystalline iodine from its six IOsorb®
iodine plants in Oklahoma. This was an increase of 15.5% from Q1
2023 (107.1 MT). Demand for Iofina's iodine remained strong
throughout the Period and was supported by a further expansion in
the customer base. The iodine spot price has remained steady in the
mid to upper sixties per kg and prices are expected to remain at
these levels in Q2 2024. The Company's sales channels remain
robust, which is encouraging as it executes its production
expansion plans.
Iofina's newest build, IO#10, is on
track and progressing well. Dirt and concrete work are complete.
Major components have been ordered, including the tower system
which was sourced from an additional manufacturer to ensure ample
supply from multiple vendors. The final steps for completion will
focus on the tower installation, assembling buildings, plumbing,
electricals and tying into our partner's brine system, which will
happen during the early summer months. The Company continues to
work on other growth projects and is in advanced dialogue with
multiple partners for the next plant, IO#11.
Additionally, Iofina has signed new
multi-year agreements for the supply of brine water to two of
Iofina Resources' current IOsorb® plants. The new agreed terms,
with one of Iofina's existing oil & gas partners, is an
important milestone in maintaining consistent iodine production at
both plants, whilst enabling our partners to maximise the supply of
brine to these plants. The expectation
remains that Iofina Resources will produce 275-295 MT of
crystalline iodine during H1 2024 from its six existing plants (H1
2023: 241.5 MT). Iofina recognises that
previous brine water supply fees for these two plants were lower
than the standard market rates due to the historical nature of the
contracts. Consequently, the new contracts carry higher fees
than the previous agreements. The higher fee payments, which are
effective 1 January 2024, will reduce EBITDA, and the Board expects
FY 2024 EBITDA to be in the range of $8.5-$9.0
million.
On the current timetable, IO#10
should make a healthy additional contribution for the H2 period and
once operating, IO#10 is expected to produce 100-150MT of
crystalline iodine per annum. The Company notes that it expects to
publish its 2023 full-year financial results to the market in the
coming weeks and hold its AGM in June 2024.
Commenting, President and CEO, Dr. Tom Becker,
stated:
"The Group has made a strong start to the year across its
operations. We have experienced consistent iodine production with
output meeting our targeted range and demand for our products
continues to be strong. The construction of IO#10 is also on track
and is expected to be completed in Q3 2024 on the current
trajectory.
"It is important to have signed new agreements with our
partner and secured future water supply to two
IOsorb® plants. Guaranteeing this
security means that Iofina can continue its future growth plans
with confidence in our partners and focus on the development of new
plants and products."
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
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
celebrated its 40th anniversary in 2023 as a
preeminent halogen-based specialty chemicals company.
www.iofina.com