Shares in Iofina (LON:IOF), the natural gas and iodine explorer and producer, stayed steady after it reported a narrowing of full year losses. The company struck a positive note on current trading, saying iodine demand has been strong over the first quarter.
Losses for the year to December 2010 totalled £3.3million versus £4.2million last time on revenues of £8.86million, up from £3.38million. The year end cash position stood at £3.74million.
Post its year end, in April 2011, the company raised £2.84million through an oversubscribed placing. The funds will be reinvested in the iodine business and used to help meet its working capital requirements.
Over its 2010 year the group made a big effort to maximize iodine recovery from both its flagship Atlantis prospect in Montana, USA, and third party brine stream operations where it provides turnkey, fee based solutions to extract iodine.
The group notes that iodine demand returned strongly in the first half of 2010 but weakened in the second half of 2010. Prices remained flat for 2010 but still at record highs.
As anticipated, iodine has seen strong demand in the first quarter of 2011 with recent spot prices reaching over $60 a kilogram, a new all time high. Chris Fay, non-executive chairman said Iofina expects iodine demand and prices to remain strong for the rest of 2011 but weaken in early 2012 as production upsets in both Chile and Japan are sorted out.
As for its natural gas business, the company anticipates prices to recover from seven year lows, allowing it to benefit from increases in revenue from this side of its activities.
In early morning trade, Iofina shares were unchanged at 27p, valuing the company at £31.2million.