Iofina PLC Market update (7163U)
April 11 2016 - 1:00AM
UK Regulatory
TIDMIOF
RNS Number : 7163U
Iofina PLC
11 April 2016
11 April 2016
Iofina plc
("Iofina" or the "Company")
(LSE AIM: IOF)
Q1 MARKET UPDATE
124.6 metric tonnes of iodine produced from five IOsorb(R)
plants
Production target of 250-270 metric tonnes of iodine in H1
2016
Iofina, specialists in the exploration and production of iodine
and iodine specialty chemical derivatives, today provides an update
to the market regarding iodine production in the first quarter of
2016.
Iofina produced a total of 124.6 metric tonnes ("MT") of
crystalline iodine in Q1 2016 from its five IOsorb(R) plants. This
compares to 127.9MT of crystalline iodine produced from six plants
in Q1 2015 of which over 5.5MT was produced at the now closed
IOsorb(R) IO#1 plant. The net iodine production in Q1 from the
Company's Oklahoma operations increased year on year. The Board
reaffirms its production target of 250-270MT of crystalline iodine
in H1 2016.
Historically, Iofina's iodine production during the winter
months is generally more challenging due to downtime driven by
temperature and weather related issues. Additionally, and since the
Company's 18 January 2016 RNS, the Oklahoma Corporation Commission
("OCC") has implemented additional plans to reduce produced brine
volumes injected into the Arbuckle geologic formation in response
to seismic activity in an approximately 10000 sq. mile area of
North West and central Oklahoma.
The Board is pleased to report that Iofina and its partners have
been working cooperatively to ensure that the Company's IOsorb(R)
plants, at a minimum, maintain current levels of brine processing
and ideally expand volumes to some of our plants. These plans can
vary per IOsorb(R) plant, but generally entail being less
associated with a particular Salt Water Disposal injection well
("SWD"), and more so being tied into the producer's main brine
pipeline network. The tie in work is anticipated to commence
shortly at two of the Company's IOsorb(R) plants and should require
minimal capital expenditure. Even with the OCC restrictions and a
slowdown of new well drilling rates in Iofina's core area, there
remains an abundance of brine for the Company's current plants and
potential future sites. The Company has continued to implement
strategies to trim iodine production costs.
In Q1 2016, iodine pricing for large volume users of iodine
slipped below US$25/kg. Whilst not definitive, the Board has seen
recent signs of price stabilisation across the global iodine
market. Some indicators to this price indication are supply/demand
equilibrium for iodine in conjunction with the recent weakening of
the US Dollar versus the Japanese Yen and Chilean Peso. The Company
sees less downside risk for iodine prices in the near term.
During Q1, Iofina had a hearing with respect to the Company's
requested judicial review of the Atlantis Water Solution's water
permit. The Company expects to receive a ruling late in Q2 of 2016
for this non-core project.
Commenting, President and CEO Dr. Tom Becker, stated:
"I am pleased by our response to the challenges faced in 2016.
Iofina produced more iodine from its Oklahoma operations at a
significantly lower cost than the same period in 2015 and is on
target to reach H1 production goals.
"The actions the Board is taking, in conjunction with the
Company's producing partners, to mitigate future risk and ensure
brine supply remain encouraging. We have been pleased with the
continued sales of produced iodine to the global market. The Board
continues to actively execute its business plan whilst managing the
debt position in the current challenging commodities market. "
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
END
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