TIDMIOF
RNS Number : 9501Z
Iofina PLC
16 January 2020
16 January 2020
Iofina plc
("Iofina", the "Group", or the "Company")
(LSE AIM: IOF)
Market Update
Strong H2 2019 culminates in record year of iodine
production
Iodine spot prices up 20% YoY
Iofina plc, specialists in the exploration and production of
iodine and manufacturers of specialty chemical products, is pleased
to update the market on an exceptional year for the Group, in which
it produced a record volume of crystalline iodine and continued to
execute on the Group's commitment to growth and increased
profitability.
2019 Performance
Iofina Resources:
-- A record year of crystalline iodine production
o Full year 2019 production totalled 602.7 metric tonnes ("MT")
of crystalline iodine (FY 2018: 588.8MT)
o Produced 316MT of crystalline iodine in H2 2019, in-line with
the 305-325MT half year expectation
-- Commenced construction of new plant IO#8, currently on time and within budget
-- H1 2020 production currently forecast at 315-345MT of crystalline iodine
-- Continuing exploration program and progressing determination
of the next plant site for expansion of iodine production
-- Iodine spot prices rose over 20% in 2019 to $32 - $37/kg
Iofina Chemical:
-- Record sales of crystalline iodine, mostly spot (to
established, preferred customers), some contracted
-- Price increases for iodine derivative products lagged somewhat behind those for spot sales
-- Non-iodine product sales were strong
-- Plant improvements underway to improve process efficiency and maximise production output
-- Successful hiring of key personnel in 2019 including
Production, Engineering and Quality Managers
IofinaEX:
-- Hemp has been purchased for development
-- Successfully isolated first CBD oil product from hemp and continuing development work
-- Strategic investment into Organic Vines OP, LLC, a hemp seed growing operation in Colorado
-- Working to develop CBD/hemp opportunities in Belize and Central America
During 2019, Iofina achieved a record set of production results,
with the Group producing 602.7MT of crystalline iodine (2018:
588.8MT), a 2.3% increase on last year's production output. As a
result of the increase in output, combined with rising iodine
prices and strong sales from Iofina Chemical's non-iodine products,
2019 was a strong year for the Group.
The construction of IO#8 continues to progress well and the new
plant is expected to be brought online in April/May 2020. Concrete
work has been completed and the electrical and plumbing work is
ongoing, whilst the building and mezzanines are simultaneously
being installed. In mid-February the Group expects to install
extraction towers and other large systems. Once in production, IO#8
will contribute fully to the Group's H2 2020 production output and
will have a similar cost per kilo to Iofina's current lowest per
kilo production cost plants.
Looking ahead to 2020, the Company expects that iodine
production will continue to grow. The Group expects to produce
between 315-345 MT of crystalline iodine in H1 2020, with levels
increasing even further in H2 2020 due to better weather conditions
and the addition of IO#8 increasing the Group's overall
production.
Iodine prices rose over 20% in 2019 and, moving into January
2020, the spot price was generally in the mid $30's/kg, as a result
of the continuing demand for iodine and a tightness in supply. The
Board believes that contract and spot iodine prices will continue
to increase in 2020, coinciding with the Group's expansion with the
addition of new iodine plants.
Iofina Chemical, the Group's iodine derivative manufacturer
located in Covington, KY USA, continues to sell all of the Group's
products including crystalline iodine produced by Iofina Resources.
In the period under review, and since the Company's placing in June
2019, the Group has been able to allocate the necessary capital to
Iofina Chemical to improve efficiencies at the plant in order to
meet growing demands for products. Capital spent included improving
equipment for certain key iodine derivative products. Additionally,
due to increased demand, some operations have increased to a 24/7
work schedule.
The Group remains confident in the potential of IofinaEX, the
new business entity which is exploring the isolation of specialty
chemical products from hemp, a rapidly expanding market. IofinaEx
purchased hemp for development in Q3 2019 and has successfully been
able to isolate its first CBD oil product from hemp. The Group will
continue to develop its strategy in the CBD/Hemp space and looks
forward to providing an update on the business plan for these
operations, both in the USA and globally in countries such as
Belize.
Commenting, President and CEO of Iofina, Dr. Tom Becker, stated:
"I am delighted to report the Group's exceptional performance in
2019, in which we achieved record iodine production whilst also
executing on our expansion at the right time, when iodine prices
are continuing to build momentum. With the forthcoming addition of
IO#8 we continue to look ahead, and will seek to expand our
production capabilities beyond IO#8 this year.
"Meanwhile, we are working diligently on debt restructure
solutions and are confident we will have a firm plan in place by
the time we release our full year results in Q2 2020."
Enquiries:
Dr. Tom Becker
CEO & President
Iofina plc
Tel: +44 (0)20 3006 3135
Christopher Raggett/Giles Rolls/Matthew Radley (corporate
finance)
Camille Gochez (ECM)
finnCap Ltd
Tel: +44 (0)20 7220 0500
Media Contact:
Charles Goodwin/Harriet Jackson
Yellow Jersey PR Limited
Tel: +44 (0)20 3004 9512
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. As the second largest producer of
iodine in North America, it comprises three USA entities; Iofina
Resources, Iofina Chemical and IofinaEX.
LEI: 213800QDMFYVRJYYTQ84
ISIN: GB00B2QL5C79
Iofina Resources
Iofina Resources develops, builds, owns and operates iodine
extraction plants using Iofina's WET(R) IOsorb(R) technology.
Iofina currently operates four producing IOsorb(R) plants in
Oklahoma is building a fifth site, 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 for over 35 years.
IofinaEX
Iofina's newest subsidiary, IofinaEX, is fully licensed to
process hemp in the state of Kentucky and is exploring the
isolation of specialty chemical products from hemp, a rapidly
expanding market.
IofinaEX Global
IofinaEX Global is a Belize based subsidiary company of Iofina
exploring CBD/Hemp opportunities in Central America and Caribbean
countries.
www.iofina.com
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
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END
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