Iofina (LSE:IOF) Q2 2026 Earnings Call

0:00 Good afternoon and welcome to the ifina plc investor presentation. Throughout this recorded meeting investors will be in listen only mode. Questions can be submitted at any time by the Q&A tab situated on the right hand corner of your screen. Just simply type in your question and press send. The company may not be in a position to answer every question received during the meeting itself. However, the company can review all questions submitted today and publish responses where appropriate to do so. Before we begin, I would submit the following poll. We do apologise for the slight delay in starting today. I'd now like to hand you over to Tom Becker, CEO. Good afternoon, sir.

0:30 Thank you very much. Hope everybody's doing well today. Happy to present an update on IAPENA, especially focusing on the first half year results, which came out earlier this week, and really an outlook for the future, which we're very excited about. Go through what we're going to be looking at from a presentation standpoint here, the general agenda. Just talk about the company in quick terms. I think most of the people that are listening to this call are familiar with Iodine, but there may be some that are not. So we'll give a quick overview of what Iodine is, what we do, and the market that we're mainly in, and that is the iodine market. So we'll give a little bit of history of the supply and demand and pricing of iodine, and also what kind of markets that iodine is going into and how those markets are growing.

1:23 And then we'll get into... what we kind of did in the first half of this year, both from a business standpoint and a financial standpoint. And then we'll get into what I think is, you know, and those first half of the year numbers, I think we're very excited about and proud of what we were able to accomplish in the first half of the year. And then we'll get into what I think is even the more exciting aspect of it. And that's our, our pathway to 2000, our growth of our item production that we were planning to roll out. and uh you know why as a successful item company um with growing business why the investment case right you know in my opinion is has a real upside potential and where we think we're going to be moving here uh down the road so to jump right in and talk about the company a little bit itself and just talk about our operations we are a specialty chemical company with a expertise in halogen-based chemistry, so iodo-, chloro-, fluoro-based chemistries with a real focus on iodine and iodine production. And to do this, we developed technology over the course of the last 20 years in order to build the business that we have today.

2:33 And all of our operations for Iapena are in the United States. So two divisions, Iapena Chemical and Iapena Resources. is the arm of the business that has basically two goals two functions and one is to explore for and develop potential for where we can produce iodine from brine water waste brine water in the united states and once those opportunities are identified The second portion is to build and produce iodine from these particular sites. So very focused operation. Where's the iodine? Where can we economically produce iodine? How can we use a resource that's already being produced from oil and gas in order to extract a valuable resource from a waste stream and then build and operate these plants on a very low cost basis?

3:25 And all those kind of things are done in the core areas that are shown in the map here. So there's two core areas. in the state of oklahoma one of the northwest core area which we have five plants in operation currently one core area in the central oklahoma area where we have our latest three plants in operation and we're very excited about the new third core area in the permian basin which io12 is currently being built it should be up online here pushing water through the plants in the next few weeks to support the ivena resources division we do have an office in denver colorado to support those kind of activities the ivena chemical side is also a very a very major portion of functional unit of our organization it's located in covington kentucky just outside of cincinnati ohio and what i've seen a chemical does is it takes all the iodine that i've been a resources creates either takes that iodine and creates value-added derivatives that go into various applications, or is our total sales arm of the organization and sells that crystalline iodine that's produced at Iodina Resources throughout the world into various markets that need iodine. And to jump into those markets that need iodine, let's talk about the iodine market a little bit, how we view the iodine market, its current pricing and demand situation, and where iodine goes. So A little bit of a history of where iodine comes from, who manufactures

4:57 it. About 60% of the world's iodine, maybe a little bit more than that, comes from Chile. They mine iodine from ores in the Atacama Desert. This is a pretty labor and rock-moving energy-intensive process to extract iodates from ores and then refine it in order to get iodine. There's four major manufacturers in Chile, SQM being the largest, which produces about a little over a third of the world's iodine. The rest of the world's iodine comes from brines, but what makes Iodina unique from the rest of the world is we are the only one that's using oilier produced brines from third parties. We go to where these brines are already coming up with oil and gas operations, and we are not drilling our own wells our own disposal wells for this brine we partner with oil and gas companies extract the iodine from them give it back the water and everybody benefits from the iodine that ifina manufactures and without it would never be realized the market itself continues to grow in 2026 we expect the iodine market to be at or around 40,000 metric tons of production on an annualized basis And this chart also gives you an idea of how pricing has been.

6:19 And pricing over the last four years has been fairly stable, generally over $70 a kilo on a 100% basis of sale price of iodine. And we believe this firm pricing is a more normalized price that we're going to see here moving forward. never predict the future but right now for what we're seeing in the market from the demand from customers that we associated with the information that's in the market about supply we do believe that the supply and demand for either is fairly well and equilibrium but what this also means is that if you can see from the chart is that the item market continues to grow we'll talk about the applications in particular that are looking to grow but if this item market which has on average over the last number of years grows at about 3%.

7:07 That means there's an additional 1,200 metric tons of capacity or thereabouts that needs to come into the market in order to meet demand. So I think this ambition to continue to accelerate our item production and just meet a fraction of that ongoing demand we believe is the right action in a growing market, which also wouldn't disrupt the supply and demand equilibrium. Just from a demand standpoint, demand in Asia is especially growing compared to the rest of the world. And in particular, some of these are the major applications that iodine goes into. The one I'll really focus on a little bit is X-ray contrast media, although you can see there's a number of different areas that iodine is used for around the world.

7:55 X-ray contrast media, these are injectable drugs that go to help... create more of an image in ct scans especially it goes to focus on soft materials in your body so if it in certain application contrast media drugs are injected into the body that way these images pop and and these x-rays and ct scans can be much more easily interpreted by the doctors and the technicians And that's a very much growing application for a few different reasons. One is that the aging population around the world need seeing more of these x-rays and CT scans. The other major aspect is that global populations are getting more access to what I'll call Western medicine or modern medicine techniques.

8:54 So especially in Asia, where some of these... medical techniques weren't available or haven't been available in the past are becoming more and more readily available to their populations but you know x-ray contrast is only a portion of that there's a number of other applications which do have some human health tie-ins including iodide compounds are used to manufacture certain pharmaceuticals everybody needs a little iodide in their in their diet in order to Control thyroid function, but there's also some other industrial and and other applications I think the chemical produces a biocide that goes into paints and coatings to prevent mold and mildew and in the can itself and on the wall We manufacture things that can catalyze acetic acid manufacturing animal health additives as a micronutrient in animal health applications to have cows and other farm animals grow bigger and fatter and provide more value to the farmer when sold.

10:06 But there's other industrial applications as well such as heat stabilizers and certain automotive applications. So I guess the message is Iofina is an iodine manufacturer with a focus on some iodine derivatives and we believe we're in a nice growing market with expanding applications and just to jump into uh the first half of 2026 which we're very proud of the results that came out earlier this week you can see a number of bullet points here especially at the top which on the next slider are kind of reiterated and i'll allow Malcolm to review some of those but i just want to focus on the second half of our operations that we have done year to date in 2026. So, in the first half of the years and then between the end of June and currently.

11:00 So, some big operational accomplishments that we've done is we announced in 2026 an agreement with a new brine supplier to add additional brine supply to our I-11 facility, and we'll talk about that here a little bit, what that really means, which is likely to increase production at that particular plant by about 50%. we've been building io12 throughout the first half of this year and into the third quarter this year as well and should be online here in the next few weeks and earlier this week we very excited to announce the next rollout of plants agreements for what we're going to be doing next after io12 and we'll talk about that here in a second but right now i think what i'll do is throw it to malcolm change it to the next slide if he can go through some of the key performance indicators that we had in the first half of 2026 and the, I think, pretty outstanding numbers that our business was able to achieve.

12:03 Okay, thanks, Tom. So, working from the top, the most important driver for our business, surprisingly, is iodine production. and that increased by 29 percent 26 versus 25 and that 29 percent increase represented 88 metric tons additional in 26 compared to the first top 25 and of that 88 additional metric tons 15 metric tons came from plant number io 11 which only came online after h y 25 was finished but before HY26 started so that was at 88 and there was another specific plant that actually kind of surprised us by producing significantly more than we anticipated due to the way that the oil and gas part chose to bring on new wells and results of some fresh drilling and that gave us an extra 80 metric tons over and above what what we thought so those two things together add to about 68 out of the total 88 in addition the first half our usual expectation is that the first half numbers production will not be as good as the second half because the first half includes the winter period especially january and february which in oklahoma can be pretty

13:33 cold and cause issues and in fact hy25 did have that type of winter in oklahoma in fact quite a severe version of it and the consequence is that the cold means our chemical reactions don't work as well as they do when it's warmer it also can mean that our oil and gas pump has pumps down their wells for example start to ice up and they have to take some of our water supply offline while they repair and that type of thing. Whereas for HOA 26 the weather was surprisingly clement and to be frank everything went very well. The amount of production from the legacy plants, never mind the couple I mentioned already, was by and large better than we'd expected.

14:29 The pricing, so, sorry, bigger part, we moved down on revenue, we've got 31.3 for 26 against 29.2 for 25, 7% up. If you look down at the bottom line, you'll see that the average iodine price, frankly, barely moved, it shifted up just a little bit, 25, $74.27, 26, $74.69. So that revenue number to the extent it includes iodine sales, which is mainly what it does, is a reflection of the additional volume rather than any pricing effects the gross profit came in at 10.2 against 6.3 for 25 that's a big increase and it's a reflection really of well a couple of things one the amount of production which was one could say perhaps about as high as it reasonably could have been and also the fact that our direct production costs were held pretty low and the numbers came in on budget if not slightly better and we were able to make some savings with the cost of chemicals through some new negotiations with suppliers and the overall effect was that our total direct costs of iodine production went up by 10% whereas the volume produced went up by 29% and therefore the average cost per kilo

16:01 of our iodine fell by 15% and that generated a significantly lower cost of sales and that in turn resulted in a larger gross profit and fed down to a larger EBITDA number so in fact with EBITDA we wind up with a 6.6 million which is double the 25 number of 3.3 and we're very pleased with that post tax earnings the 2.5 million for 25 is kind of flattered because it includes the government grant not a trading item but we'll come to that in a later slide net cash we're also happy with in the sense that it's 0.8 million negative although i would mention that we still have three and a half or four million dollars of capex costs still to feed through from the construction of the latest plant io 12 that money's getting spent well some of it's been spent by now i think the rest of it will be out in the next month or two okay great yeah and i'll just you know point one other thing before we get off the slide is that

17:16 There's a reason why this chart's on this slide. We're very proud of the growth trend that we've had over the last three years. And it's mainly driven by the execution on the resource side by increasing the production year-over-year, building new plants. With I-12 coming online here in the next few weeks, that'll be our fourth plant in four years. And we're really proud of the execution that our teams have done. Just to get into a little bit more detail about the first half of the years on either side of the business, a lot of this we've covered already, but it's Malcolm mentioned, you know, our H1 2026 production even exceeded our revised upward target. So we had things really work our way in the first half of the year.

18:03 Malcolm mentioned this in the last slide, but I think it's pretty important to point out the third bullet on this slide is that our average production cost is 15% lower And some of it was luck from the weather, but really some of it was things that we've done to improve water volumes, work with our suppliers to try to increase the amount of water. But really our sourcing department did a really great job in chemical sourcing. One of the things we did note in the result commentary that we just put out earlier this week is that Well, we saw improved chemical costs in the first half of the year. We have seen a little bit of creep of these chemical costs moving into the second half of the year, and that's mainly due to increased raw material costs, mainly influenced by fuel cost increases and some other things that are manufactured in the Middle East. There's a little bit shortage of supply around the world, and of course you would imagine that's going to creep chemical costs up.

19:00 But we do a really good job and try to Contract these major chemicals that we use especially on that being a resource size to try to minimize any kind of cost changes That we see here in the future We did spend five point eight million dollars in tap backs in the first half of the year has not been mentioned it was It's we haven't fully paid for io12 or the io11 project that we that we started in 2026 so there's about half of the i-11 little more than half of the i-11 project was paid in this 5.8 million dollars and i think what around four million dollars of of i-12 costs were um were spent in the first half of the year um as we've already mentioned we're in the final stages of our new biggest plant to date in the permian basin and um you know it's up to the ip and a resource business development team to have a pipeline of future plans after this in order to meet our pathway to 2000 kind of goals and Very proud that we announced the next plants in our line of increases of our iodine production capacity here announced earlier this week or last week for IO13 and IO14.

20:15 And to summarize a little bit on the iodine and chemical side as well, again, all the iodine funnels through iodine and chemical and it's important and imperative that as I think the resource side grows that the sales team on the I think the chemical side continues to expand our customer base in order to ensure sales of our item based products. And we have a long-term customers, good customers that are looking to grow with I think this growth as well. So excited about the work our sales team has done. Um, we, um, we have basically, um, have, uh, sales in hand for all of the projected production of iofino resource crystalline iodine that we plan to sell into the open market throughout the rest of the year so the demand for iofino iodine is strong our customer base is solid and we'll be start selling our iodine or taking purchasers for iodine into 2027 here shortly Some other things about iodine and chemical.

21:23 Again, we make iodine and non-iodine derivatives besides selling the crystalline iodine itself. Last year, we announced that we were adding a new product to our line of iodine derivatives, and that is a feed additive, so a micronutrient, to help specifically cattle, but some other aspects as well. And it was our largest revenue derivative in the first half of 2026. We continue to have, you know, about 10% of our sales into non-idin derivatives, and those are focused on some specialty gases and one other application that goes into the Great Lakes, which didn't have realized sales in the first half of the year, but will have realized sales in the second half of the year. And we continue to focus on research and development for new derivatives for iodine and chemical, especially for those applications that may be growing in the future. If you remember back in our annual report, we mentioned some potential new applications for iodine in the solar cell industry and the refrigerant gas industry, and we're working hard at Iodine Chemical to be a player in those areas if those applications end up taking off.

22:38 So we do have some summaries of the financial reviews. Malcolm covered a lot of this, but he's going to point out a few more things on the next few slides that we feel are important to mention.

22:49 Okay, so here we are on the income statement. As Tom's just mentioned, the non-iodine figure on the second line of 2.9 billion for 26 is kind of, we would suggest, understated because we were expecting to make a delivery to Great Lakes Fisheries, a particular product, before 30 June, but they decided to delay it and it's gone into the second half of the year. So that 2.9 could well have been at least 3.5 billion, probably more in fact. um we've talked about cost of sales and EBITDA and what led to significant improvement there going down a bit yeah you can see Tom's highlighting it as government grants ERTC ERTC stands for employee retention tax credits this is a US government covered era scheme for support and relief where people have kept I should say did keep um employees on even though their businesses were adversely affected by covered and and they had lists coming in to to uh to finance their payroll it's taken a heck of a long time to come through but that's just the way this scheme has kind of played out because we're a great number of claims made under it and it took the us government a while to kind of decide what what approach it was taking to validate them uh apart from that i think we could move on to the next slide okay balance sheet building equipment 41.7 it's up whatever

24:21 it is 6.2 and that's a reflection of the additional capital expenditure best appreciation at 5.8 million you've just seen i think um working capital 13 million net versus 13.8 in hy25 not a lot of change there we do get some fluctuations in the overall number depending I think above all of when particular sales are invoiced we have can have and frequently do pretty large amounts on individual invoices possibly as much as let's say 1.2 million dollars for a full 18 metric ton container load of iodine and if two or three of those invoices get in gets slightly out of sync or into a different period that can swing the movement in words and capital but this is a pretty consistent set of numbers one period versus the other now below we've got bank debt at 5.7 of that 4 million relates to a drawdown on a capex facility that we made last year to support the capital expenditure that we were laying out on IO11 plant and the other 1.7 make up 5.7 is the remainder of a term loan of 10 million dollars that we took out in September 2020 when we did a pretty thorough refinancing

25:56 with our bank and that 1.7 will be paid off by the middle to late next year. So net cash wound up at 7.2 versus a negative net position of 0.8 previous year. Lease liabilities were up at 0.7 from 0.2. The reason for that is that the lease we had on the office in Denver where our Iofina Resources, which runs the iodine production, where they're headquartered, their lease ran out and the way the lease is accounted for under ifrs international financial reporting service number 16 is that the total outlay on the lease over over the whole period is capitalized and then it's depreciated and last year we were down to very little time remaining we've now got a new lease and a bigger figure that will in turn get depreciated down over the next two or three years Finally, on this slide, we've got deferred tax of 5 million, that reflects tax that we've, if you like, saved because we've been able to claim a lot of capital expenditure against what would otherwise be taxable profit. And that was considerably assisted by the arrival of the OBBBA bill in the States. under president trump that was signed into law last july

27:27 and that has made it uh significantly more possible to effectively have a hundred percent write-off of capital expenditure subject to certain limits uh against tax so that saved us that has helped assisted our cash flow okay so here's the cash flow itself kicks off with an ebitda working capital in our favor for this period as again as a not not not particularly significant matter to us for reasons i've already mentioned uh so we generated 7.8 million from operations we spent 5.8 on capex demonstrates that the capital expenditure that was in the books for the first half was internally funded out of cash out of operating cash flow that's just with two million then we have bank repayments and we wind up with 12.9 million of cash as opposed to 6.4 half last year and as a just as a little addendum we apparently still at about 12 million dollars cash level as of the last week or two i'm pleased with that great thanks for that review and i'm going to switch gears here a little bit um we've talked about

28:44 where we've kind of been and what our plans are and now we're going to detail a little bit about how we're putting that into action so give a little bit more detail on item number 12 which we've provided this information to the market but maybe a little bit more detail here again it's a bigger plant that we've ever built most of our plants in Oklahoma have the capacity to take in about 25,000 barrels of water per day um and this particular plan is being built in order to be able to take in about 50 000 barrels per day of water it's in the permian basin where it's the largest hydro producing hydrocarbon basin in the world there's a it's hard for me to even imagine there's 20 million barrels of brine water produced in the permanent basin every day and our partner that we're partnering with here is handling over two and a half million barrels of water per day now not all that water In our view, it has economic amounts of iodide in the water to be able to extract iodine economically, but our exploration team has done a really good job in identifying areas in the Permian Basin, such as where we're putting I-012, and for future sites that we believe are going to be a real opportunity for expansion for the organization.

30:05 Again, the timing of this, in the next few weeks, we expect I-12 to be moving water through the facility and ramp up in production shortly thereafter. The plant capital costs, when we first started this plant, we thought it would be doing eight, nine million, and it looks like it's going to come in right around $8.8 million. So within the budget of what we expected in this area. And again, we have a strong partner who is working with us to try to get this thing online as soon as possible. and we are very confident they're going to try to maximize this 50 000 barrels of water to our site um as soon as possible so excited about this plant excited about possible expansion opportunities in this particular area as well not only with our current partner western mystery but we're in uh we we have other uh people that handle large amounts of barrels of water they have good iodine concentrations discussing future sites of iatina also additionally the other exciting thing that has come recently announced i believe was last week was the agreements that we put in place for io 13 and 14 and also the ivan pipeline project that we completed in august 26 so let me go back to a project that we completed in 2026.

31:30 we all remember io number 11 came online in 2025 who's about a expected to be about 100 metric ton kind of capacity plant in an area of central oklahoma it is a it's a plant that has lower brine volumes but higher concentrations a good plant by by itself in all respects what we're able to do is partner with another brine operator in the area and working with our existing partner came to agreements to allow for an additional water supply coming into io 11 so once we got those agreements arranged our partner our new partner built pipelines from their water source to our plant and back we funded that project and what that's going to do is be able to get another about 50 capacity to the particular plant so 100 metric ton plant now it's going to be somewhere between 145 and 160 metric tons of production at that site.

32:36 So we're working hard to try to maximize the amount of water to every one of these sites. These kind of projects aren't easy to do. The more likely things that we do to our existing plants is work with our existing operators to try to maximize the amount of water that they can provide to our individual plants without over-pressurizing their system. And I think the real important news that we announced is agreement last week to build io13 and io14 and again this will be in the central oklahoma area an area that we're very familiar with familiar with the water familiar with contractors and builders to build these operations that we've done on io9 io10 and io11 signed a few weeks ago We can provide more details a little bit later, but overall, the idun plants in Oklahoma are somewhere between 100 and 150 metric tons of plants on average.

33:33 We anticipate that the total volume from these two new plants is likely to be higher than the average amounts of plants in Oklahoma. So, on average, a bigger plant in oklahoma so looking forward to provide more details when those are available and final details are worked out with our partner to give a little bit more insight into the in the production and timeline of this but we're very ambitious that we believe we're going to get these plants online in the first half of next year and we'll be updating the market on that progress So what does this all mean? So Malcolm reviewed a lot of our financials in the first half of the year. If you look back at our financials from 2025, we're very proud of the continued growth that IAFINA has done.

34:27 In 2025's annual report, the management and the board of IAFINA laid out our route to 2000, the pathway to 2000. We went from 500 metric tons of production to once IO12 is opened up, we'll be at about 1,000 metric ton run rate of our island production. But we feel with the growing island market, our expertise in this area, the opportunities that we have in not only the Permian Basin, but as you can see with IO13 and 14 in Oklahoma, that we have the right opportunities. opportunities to continue to increase the capacity of our of our ivan production um we worked hard on our balance sheet with that cash as malcolm pointed out at 7.2 million dollars in june 30. um we worked hard and maybe malcolm can you mention the debt facilities that we have that we have in place in order to help fund these future sites as well yeah okay so we've got a 10 million dollar

35:34 facility that our bank um which is uh to be used on um uh well not 12 but in fact probably io 13 and 14 and in addition to that uh facility which is which is a form of a uh of a term loan with a drawdown period up to the end of next year and then after the drawdown is finished and it's repayable over seven years and the interest rate is so far sofr secured overnight financing rate plus two percent which we think is what it's a it's it's a rate that applies to various other arrangements we have with the bank we also have a six million dollar revolving line of credit which is effectively a kind of overdraft we've had that in place ever since that refinancing back in september 2020 we've never used any of it and going forward it may be something that we will bring into action if needed

36:33 depending on how the spend on new new sites goes versus money that comes in all the time from normal trading operations thanks for that update so I guess the point I think we're trying to make is that you know in order to obtain this goal of the road to 2000 in the next few years not only do we have to have the projects and opportunities to do that we have to be smart and have a healthy balance sheet good banking partners to help fund these kind of operations and once these kind of plants get up and going and start generating cash our projections look very enticing here in future once we start getting plants like io12 13 14 and the next generation of likely larger plants 15 and 16 online so The last couple bullet points, we expect to exceed the production capacity of 1,000 metric tons once I-012 comes online. And this pathway to 2,000 with I-013, I-014, and the pipeline of ongoing sites with multiple brine suppliers that we're in negotiations with is really exciting for I-ofina and its growth story.

37:51 So just to summarize a few things of why we think um basically i think it's a great place to invest in um personally i think um we're not getting enough credit for what we've not only done but the prospects that we have in the future um the opportunities that build plants with rapid payback um and what that's going to mean down the road from knowledge and cash generation but actual profits of the organization so um you know we have uh we continue to expand our output, especially the capacity for iodine by building new plants. With IA 12 coming online, that's four plants in four years. With IA 13 and 14 coming online in 2025, just so those plants, that'll be six plants in five years. So with this excess capacity and strong financial discipline that we've had, we really have a balance sheet that supports this growth And with an eye to market that is expanding, Malcolm and I personally and our board really think it's the right time to increase that growth that we've seen over the last number of years and put our technology into action in new core areas like the Permian Basin.

39:11 We invest into these plants that have rapid paybacks, and this will eventually cause this a tremendous amount of cash generation in the future we do our very best due diligence to ensure as best we can that these new plants we estimate the cost and the long-term capabilities of having supply at these particular plants you know there hasn't been any kind of shutdown of any plants that we've built over the last 10 years of iodine of iophenous growth so we're very proud of the due diligence that we have in putting plants where these water really congregates so we're executing these this pathway to 2000 both optimizing the existing plants but really building the new larger facilities to maximize our production is really going to get us to that 2000 metric ton goal that we have in mind so What are we looking at here in the near future where we covered a lot of this?

40:18 As we continue to expand our iodine production, we expect to achieve record results like we did in the first half of the year. We expect increases in iodine production all the time, and the increases in iodine production, as long as we can control costs and the iodine market continues to expand, profitability should have increased at the same time as well. We are executing these these new plants the io 11 pipeline project the permian basin io 12 project and the new plants at io 13 and 14 which were agreed to in terms in a few months ago or sorry a few weeks ago will be once they're online will be our sixth plan five years so as i mentioned in the previous slide we do have a lot of opportunities for additional plants um even these bigger permian based plants which should really accelerate our growth here moving forward so with a high um with a good item market economics uh steady prices we're on track to meet market expectations of fiscal year 2026 and really excited about what 2027 2028 and 2029 looks like so we continue to develop um chemical derivatives and our customer basis in order to support this expansion on that being a resource side And we're really just excited about the future of IFINA and the growth that we expect to achieve.

41:46 And with that, it's been a pleasure presenting to all of you, and I'll throw it back to IMC. absolutely fantastic thank you very much indeed for the presentation ladies and gentlemen do please continue to submit your questions just using the q a tab on the right corner of the screen but just while the team take a few moments to review those questions submitted today i'd like to remind you they're recording the presentation along with a copy of the slides and the published q a can be accessed by our investor dashboard and as you can see guys we've had a number of questions throughout today's presentation if i may just ask you to click on that q a tab um where appropriate to do so just read out the question give your response i'll just bring your cameras back up as well if i may

42:24 yeah there we go cameras back up yeah if you could just read out the questions were appropriate and i'll pick up from me at the end thank you yeah so we'll go through the questions i'm sure we can give answers to all these questions we'll pick and choose some and these other questions questions that we can answer uh outside of this uh outside of this presentation time we'll try to provide written um answers where appropriate so the first two questions you've seen already and and can um and talk about those a little bit in the first one so at what point in the journey do you feel that a maybe dividend will be paid uh the answer the quick answer to that is um we keep reinvesting the cash generation um into new plants and and other capex things within the organization as existing plants and i've been a chemical and right now with the with the pipeline of opportunities and our growth ambitions um we feel like that's the best use of cash now if and we'll well, when the company, uh, gets to a point where we're generating a tremendous amount of cash. I think at that particular time, um, while the board always talks about dividends and buybacks and things like that, I think that would be a more appropriate time to talk about dividends at that point.

43:34 And then secondly, um, you know, a few months ago at the AGM, I said, uh, building two plants would cause sales issues, coping with the increased production. What's changed. I think the opportunity that we have in Oklahoma here for these two particular plants is, um, is a it's a important opportunity that we wanted to take advantage of we met with our sales team and challenged them to be able to continue to expand our customer base for ivan sales around the world after surveying the market a bit we were comfortable that um maybe this a little bit more of acceleration of growth would be um available to be able to sell into the marketplace. So we're comfortable that we'll have the sales avenue for the item that we're producing by building two plants at once.

44:23 And the other thing I'll say with respect to building two plants at once, and I'm not sure if there's another question about it, but we are working hard. Our construction team is making sure that we have the resources in place to be able to do two plants at once, which is a little out of the ordinary for us. But since we're moving back to Oklahoma for these particular sites, we have a good set of contractors, similar kind of engineering drawings, and we understand the regulatory environment to build these plants. The next question can give some more guidance on the likely annualized tonnage at I-13 and I-14 as so far it's been a little bit vague. Yes, it's been a little bit vague. We're working out the fine details with our new partner for I-13 and I-14. We hope to be able to give some more direct numbers here in the near future and we'll get that into the market as appropriate when we have those numbers finalized.

45:20 Let's go on to let me look at some other things. Malcolm, this is something I think you addressed so you may be a little bit more apt to talk about it and it has to do with a little bit of year over year differences, but the question is hi tom nice interest crystal nine sales for uh 31 percent derivative sales are up 17 percent item prices from marginally up but revenue was up all seven seven percent has something been deferred well i wouldn't say and malcolm can help me with this i wouldn't say anything's been deferred but 2025 had some carryover sales from 2024 that enhanced the sales in 2025 so when you look on a year-over-year comparison um the 2025 sales were enhanced is that an accurate that's right yeah that's totally accurate okay so that's the main driver for why revenue increase year on year was a little bit um less than you would expect basically because they were carryover sales into the early part of 2025 um i as well pushing water through in the next few weeks please expand on this delay so we all and the next question is very similar to that so um we we are within um weeks of where we thought this would be so we're not um we're pretty pleased by how this build has gone through one of the things that we didn't anticipate in building in a new area is increased

46:52 um regulatory requirements um having inspectors coming through and approving certain of the build applications has caused some delays so building the buildings that are occupied by people the area that which we're building in now is a little bit more strict than where we were in oklahoma so the major components of what we're building in the permian basin of all gone is planned some of these fine little things have caused a little bit of delay a little bit of lesson learned so that when we build our our next plan in this particular area we should be more apt to be able to handle those kind of different construction criteria in that area um i'll take a few more questions as i go through this this one is which potential new customer uses divide in dc most likely to be successfully developed in the next few years we mentioned a few things i can't remember if we did in the annual report but i know we did in the or in the interest report i know we did an annual report um that's a potential new iodine applications in solar cells refrigerants and potentially even semiconductor use.

48:07 For me, from what we understand in the market, the most likely application that could cause significant increases or significant use of iodine, not significant increases, is likely refrigerant gases for use in electric vehicles. We don't think it's going to be a significant new use in the next 18 to 24 months, but we could see some significant quantities start moving into that particular area soon thereafter. And then let me pick out a couple, a question or two more. I think we've covered most of these and some of the other ones.

48:52 I can't really do this. I think maybe we'll leave it there and try to answer some of the other questions as best we can through written answers. So, again, I appreciate everybody's time today. I'll throw it back to IMC.

49:17 Fantastic. Thanks, indeed, for updating your message today. Can I please ask investors not to close this session? It should be automatically redirected to provide your feedback in order the team can better understand your views and expectations. It's going to take a few moments to complete. I know it's greatly valued by the company. we'd like to thank you for attending today's presentation that concludes today's session and good afternoon to you all