Business
Q1 2019 Market Update
Q1 2019 Market Update.
About this update from Iofina Plc
[{"type":"text","content":"\n \nRNS Number : 4129W Iofina PLC 17 April 2019 \n\n \n17 April 2019\nIofina plc\n(\"Iofina\", the \"Group\", or the \"Company\")\n(LSE AIM: IOF)\n \nQ1 2019 Market Update\n \nYear-on-Year iodine production up 14%; iodine prices continue to rise\n \nIofina, specialists in the exploration and production of iodine and manufacturers of other halogen-based derivatives at its specialty chemical company, today provides an update to the market regarding its activities in the first quarter of 2019 (\"Q1\" or the \"Period\"), during which the Group increased year-on-year iodine production by 14% and finalised its debt restructuring terms.\nAt the end of the Period, the Group announced the successful restructuring of its debt. The debt with the Group's long-time Noteholders was extended to July 2020 and the convertibility feature was removed. This is a significant achievement, as it will allow the Group to execute on growth plans in 2019 and beyond.\nDuring the Period, the Company produced 134.4 MT of crystalline iodine, a 14% increase from the same period in 2018 (Q1 2018: 118.2 MT) and the highest level of Q1 iodine production in Company history. A full quarter's production at the Group's newest plant, IO#7, which was commissioned during the first quarter of 2018, was a significant factor in the year-on-year increase in output. The Group is encouraged by how well IO#7 has performed over the Period, and it plans to build more plants with similar productivity over the short term.\nAs anticipated, the extreme winter weather conditions in Oklahoma in January and February have impacted production efficiencies. Whilst brine water volumes available to the four IOsorb® plants, as well as the levels of iodine concentration, were as expected, the IO#6 plant experienced an out of tolerance fall in efficiencies towards the end of the quarter. The Company is currently focused on IO#6 and is making progress with restoring expected efficiencies. In addition, works planned for IO#4, which would enhance iodine output, have been delayed into Q2 due to resource constraints linked to a high level of activity by our partner. The net effect of these factors means that the Group prudently expects a reduction of approximately 10% to its ambitious H1 2019 production target, detailed on 17 January 2019.\nDuring the Period, Iofina Chemi...