Last checked at 11 Apr 2017 07:00
Iofina plc
("Iofina" or the "Company")
(LSE AIM: IOF)
Q1 2017 Market Update
Iofina, specialist in the exploration and production of iodine and iodine specialty chemical derivatives, today provides an update to the market regarding its activities in the first quarter ('Q1') of 2017.
Iofina produced 118.7 metric tonnes ('MT') of crystalline iodine from its five Oklahoma based IOsorb® plants. Water quality issues and the recently reported brine supply issue at our IO#3 plant slightly affected our total output versus Q1 2016 (Q1 2016: 124.6MT). The Board is pleased to report that our operating IOsorb® plants are currently performing well and producing crystalline iodine at forecast rates. The Company expects to produce 215-230 MT of crystalline iodine in H1 2017 without any further contribution from IO#3 during that period. We continue to work diligently at growth enhancing options for reutilizing our IO#3 resources, and will report the path forward for this plant in due course.
The Board is pleased to report that Iofina Chemical ('IC') performed well in Q1. Sales of and demand for non-iodine halogen derivatives were especially strong at IC in Q1 2017. As regards the prices of iodine and iodine based derivatives, the Company notes that prices were at a low late in 2016 and now have seemingly stabilized and recently have moved slightly higher. Iofina anticipates iodine prices will gradually rise in 2017 based on continued demand trends and the reported reduced iodine production output from some Chilean based iodine producers. However, iodine prices currently remain well below historical trends, with typical prilled iodine pricing for large iodine consumers near $20/kg in Q1 2017.
Commenting, President and CEO Dr. Tom Becker, stated:
''Iofina has performed well in Q1 despite challenges. Over the last two years Iofina has focused on improving production efficiencies as we have proven our iodine production technology at multiple plants. The Company is now positioned to apply our expertise and execute growth plans in a prudent manner. The Company looks forward to sharing details with the market once initial growth plans are finalized.
The recent trends in the iodine market, including pricing and demand for iodine based goods, are encouraging and Iofina is well positioned to benefit from any price increases. "
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 PR Limited
Tel: +44 (0)7544 275 882
About Iofina:
Iofina specialises 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® IOsorb® 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 utilises its portfolio of patented and patent pending technology, proprietary methods and trademarks throughout all business lines.
www.iofina.com
The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.