TIDMIOF
RNS Number : 5631X
Iofina PLC
20 December 2019
20 December 2019
Iofina plc
("Iofina", the "Group", or the "Company")
(LSE AIM: IOF)
Trading Update
Construction of IO#8 remains on track; IofinaEX advances
research
Iofina plc, specialists in the exploration and production of
iodine and manufacturers of specialty chemical products, is pleased
to provide an update to the market regarding its ongoing operations
and new projects.
Iofina Resources is currently constructing the Company's latest
iodine production plant, IO#8 which, once complete, will take the
Group's total number of operating IOsorb(R) plants in western
Oklahoma to five. This plant, where work began in late September of
this year, continues to make progress as expected within Iofina
Resources' timeline and budget, and is anticipated to contribute to
production in H1 2020. The Company is happy to report that
concrete, electrical work and tank placement has begun and larger
infrastructure will be installed in early 2020.
http://www.rns-pdf.londonstockexchange.com/rns/5631X_1-2019-12-19.pdf
Figure 1. Construction of IO#8 in western Oklahoma
Iodine production at the Group's existing production plants
continues to perform in line with expectations, with Iofina
Resources on track to produce 305-325 metric tonnes of crystalline
iodine in H2 2019. Based on results through early December, the
Group is confident that it will deliver total volumes of H2
crystalline iodine within this expected range.
Iofina anticipates that the addition of IO#8 will continue to
grow production rates in 2020, which comes at an advantageous time
for the Group as the iodine global market supply remains tight. As
a result, the Directors believe it is likely that iodine prices
will continue to gain momentum into 2020, building on the
significant increases in 2019 where prices have risen by well over
20%.
IofinaEX, the Group's newest specialty chemical operation
focused on the extraction of valuable products such as CBD, CBN and
CBG from Hemp, continues to make encouraging progress. IofinaEX has
continued to refine its isolation processes in Kentucky. The
extraction and distillation of CBD oil is ongoing and the Group
will continue to improve this process and develop its scale-up
strategy in this growing and rapidly changing market.
Recently, Iofina, through its subsidiary IofinaEX Global, has
been exploring business opportunities regarding CBD/Hemp in Central
America. IofinaEX Global has strong relationships with business
leaders and government officials in Belize and has been in
extensive talks for some time about potential operations and
regulations in this space. Iofina is pleased to report that the
Government of Belize is currently considering an intention to amend
new Hemp regulations in the country, to mirror the USA Farm Bill
(2018) stipulating that CBD/Hemp production can only produce a THC
value of <0.3%.
This significant consideration from the Belize Government will
be an important step in ensuring that Belize is likely to be the
only Central American and Caribbean country that will be able to
meet USA regulations on Hemp production and consequently be able to
export certified CBD derivatives into the US market. This recent
regulatory and security improvement provides a path forward whereby
IofinaEX Global will continue to investigate investment options in
Belize such as a CBD processing operation or a full 'seed-to-sale'
solution for Hemp. A final statement from the Government of Belize
is expected in the next few weeks.
Further to the Group's announcement on 6 November 2019,
regarding its investment in a hemp seed growing operation in
Colorado, Iofina is pleased to report that the project is
progressing well and as scheduled. All of these ongoing projects
are elements of Iofina's strategy to gain expertise in all aspects
of hemp/CBD production and providing a positive return on
investment for shareholders. Iofina will continue to update the
market on its progress in these areas. The Directors are aware of
the risks and potential rewards of CBD/Hemp and will carefully plan
investments in the USA, Belize and elsewhere to maximize reward and
minimize risk for its shareholders in this evolving market.
Additionally, Directors are diligently exploring various options
regarding debt restructuring and are confident of a solution in H1
2020.
Commenting, President and CEO of Iofina, Dr. Tom Becker, stated:
"We are delighted to report on the excellent progress being made on
the construction of IO#8, which will have a similar cost structure
to Iofina's current lowest per kilo production cost plants. In
addition, we are pleased with this year's production rates, with
the final year-end total expected to be a record yearly production
volume of iodine for the Company.
"As we seek to continue to grow our production capacity next
year, we are well positioned to take advantage of the current,
positive environment of the iodine market.
"IofinaEX is continuing to develop its strategy in the CBD/Hemp
space and we look forward to providing further information on the
developments that we make within our Kentucky lab, drawing on the
expertise of our specialty chemical team.
"Iofina's Directors are appreciative of the hard work and
commitment of its employees in 2019, who have worked diligently to
continue to execute on the Group's goals to expand operations,
develop new and improved technologies, and deliver quality
products. We look forward to providing a further update to the
market in Q1 2020."
Enquiries:
Dr. Tom Becker
CEO & President
Iofina plc
Tel: +44 (0)20 3006 3135
Christopher Raggett/Giles Rolls/Matthew Radley (corporate
finance)
Camille Gochez (ECM)
finnCap Ltd
Tel: +44 (0)20 7220 0500
Media Contact:
Charles Goodwin/Harriet Jackson
Yellow Jersey PR Limited
Tel: +44 (0)20 3004 9512
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. As the second largest producer of
iodine in North America, it comprises three USA entities; Iofina
Resources, Iofina Chemical and IofinaEX.
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 four producing IOsorb(R) plants in
Oklahoma, building a fifth site, and is consistently using
technology and innovation to improve and expand its operations.
www.iofina.com
Iofina Chemical
Iofina Chemical has manufactured high quality halogen speciality
chemicals derived from raw iodine, as well as non-iodine based
products for over 35 years.
IofinaEX
Iofina's newest subsidiary, IofinaEX, is now fully licensed to
process hemp in the state of Kentucky and the Directors are
committed to exploring the isolation of specialty chemical products
from hemp, a rapidly expanding market.
IofinaEX Global
IofinaEX Global is a Belize based subsidiary company of Iofina
exploring CBD/Hemp opportunities in Central America and Caribbean
countries.
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
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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