Iofina PLC - Market Update - Strong H2 2019
("Iofina", the "Group", or the "Company")
(LSE AIM: IOF)
Strong H2 2019 culminates in record year of iodine production
Iodine spot prices up 20% YoY
· 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)
· 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
· 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
· Hemp has been purchased for development
· Successfully isolated first CBD oil product from hemp and continuing development work
· Strategic investment into
· Working to develop CBD/hemp opportunities in
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/
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
Iofina Chemical, the Group's iodine derivative manufacturer located in
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
Commenting, President and CEO of Iofina, Dr.
"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."
CEO & President
Tel: +44 (0)20 3006 3135
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Iofina Resources develops, builds, owns and operates iodine extraction plants using Iofina's WET® IOsorb® technology. Iofina currently operates four producing IOsorb® plants in
Iofina Chemical has manufactured high quality halogen speciality chemicals derived from raw iodine, as well as non-iodine based products for over 35 years.
Iofina's newest subsidiary, IofinaEX, is fully licensed to process hemp in the state of
IofinaEX Global is a
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
This information is provided by RNS, the news service of the
Quick facts: Iofina PLC
Market Cap: £34.53 m
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