TIDMIOF
RNS Number : 6135Z
Iofina PLC
15 January 2024
15 January 2024
Iofina plc
("Iofina", the "Company" or the "Group")
(AIM: IOF)
Q4 2023 Corporate Update
FY 2023 Iodine Production up 8% to 559MT
IO#10 plant in progress
Iofina plc, specialists in the exploration and production of
iodine and manufacturers of specialty chemical products, today
provides a market update regarding its activities during Q4 2023
(the "Period") and outlines expectations for 2024.
With IO#9 plant operating at an improved production rate in the
second half of Q4 2023, crystalline iodine production across Iofina
Resources' six plants for the last quarter increased year over year
by 16% to 160.9 metric tonnes (MT).
Total production during the second half was 317.8MT, which
aligned with the Company's guidance that H2 2023 production would
either be at the bottom or very marginally below the forecast range
of 325-350MT. This nevertheless represents a 13% increase over
production of 282.0MT for H2 2022 . Total crystalline iodine
production in 2023 was up 8% to 559.3MT, compared to 2022
production levels of 516MT.
The iodine spot price softened by circa five percent over H2
2023 towards mid-to-upper sixties dollars per kilogram as prices
have settled from historically high levels. Moving into 2024, the
market fundamentals of the iodine business remain strong and Iofina
currently expects the spot price to remain at present levels for
the foreseeable future.
Demand for the Company's crystalline iodine remained robust
during the final quarter, whilst sales of iodine derivatives had
mixed results. Regarding non-iodine products, sales of a key
product mainly used in the semiconductor industry improved
significantly in the second half of the year after a
slower-than-anticipated first half.
Moving into 2024, Iofina Resources expects to produce 275MT -
295MT of crystalline iodine during the first half (H1 2023: 242MT),
which would result in a 13% to 22% increase over H1 2023. The
Company reiterates that H1 iodine plant production has historically
always been lower than H2 production due to the effect of lower
temperatures on production in the winter months, whereas H2
production benefits from greater output in the warmer summer
period.
Encouraging progress has also been made regarding construction
plans for IO#10 plant, with groundwork at the site scheduled to
commence this week. The Company expects IO#10 iodine production to
commence in Q3 2024 and will update on progress as appropriate.
Negotiations continue to progress well with both current and
potential new brine supply partners for IO#11, and the Company
continues to explore options in its current core area and other new
areas for our next iodine production facilities.
In terms of new products, Iofina Chemical will be adding to its
iodine derivatives product range in H1 2024, including an existing
product in the market for which there is strong demand. The Company
also expects to increase sales of its crystalline iodine to
customers in Europe in 2024 through existing and new
relationships.
The Group is committed to operating its facilities with a
safety-first approach and is proud to report that Iofina has had no
lost time incidents since April 2021.
Commenting, President and CEO, Dr. Tom Becker, stated:
"In 2023, Iofina continued to execute its growth strategy.
Crystalline iodine production improved year-on-year, with an eight
percent increase compared to 2022. Whilst we acknowledge that IO#9
took longer to operate at full capacity than we initially
anticipated, we are happy that the plant is now producing at
expected levels, and we are on track for H1 2024.
"Looking ahead, we are progressing with the construction of
IO#10 as planned and we continue to make progress towards
agreements for IO#11 and subsequent future iodine plants in line
with the Company's commitment to significantly increase its iodine
production.
"The Company's specialty chemical division, Iofina Chemical,
continues to deliver high-quality halo-compounds to the market and
is commercialising a new product for the Group, whilst also
developing additional new compounds in 2024.
"With continued robust iodine prices, strong demand for the
Group's crystalline iodine, and the ongoing execution of Iofina's
growth plans, the Board of Iofina is confident that the momentum
built during 2023 will continue to drive progress throughout
2024."
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/Soraya Jackson
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(R) IOsorb(R) technology.
Iofina currently operates five producing IOsorb(R) 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 40(th) anniversary in 2023
as a preeminent halogen-based specialty chemicals company.
www.iofina.com
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