Final Results

About this update from Iofina Plc

[{"type":"text","content":"\n \n   \n \n   \n 12 May 2025 \n   \n Iofina plc \n (\"Iofina\", the \"Company\" or the \"Group\") \n (AIM: IOF) \n   \n 2024 FULL YEAR RESULTS   \n Revenue up 9% to record $54.5 million \n Iofina plc, specialists in the exploration and production of iodine and manufacturers of specialty chemical products, announces its audited full-year results for the 12 months to 31 December 2024 (the \"Period\"). \n   \n Higher sales of iodine derivatives and increased iodine production drive 9% revenue growth: \n ·    Revenue of $54.5m (2023: $50.0m); Seventh successive year of revenue growth \n o  Iodine derivatives sales increased by 31% to $16.9m (2023: $12.9m) \n o  Crystallised iodine sales of $24.7m (2023: $24.9m) \n ·    Iodine production increased by 74.8MT (13%) to 634.1MT \n ·    Gross profit of $13.2m (2023: $15.7m) \n ·    Adjusted EBITDA 1 of $7.6m (2023: $10.8m) \n ·    Operating profit of $5.0m (2023: $8.6m) \n ·    Profit before tax of $4.8m (2023: $8.3m) \n   \n Robust balance sheet and further increase in net cash position: \n ·    Cash of $6.8m at year-end up (2023: $6.5m) \n ·    Net cash increased by $1.7m from $1.2m to $2.9m \n   \n Investing for growth: \n ·    Capital investment into new iodine plants and Iofina Chemical processes grew to $9.5m (2023: $6.2m) \n ·    Signed an agreement for IO#11 in Q3 2024 and began construction in Q4 2024 \n ·    Investment to upgrade the website has generated an increase in sales enquiries \n   \n 2025 so far: \n ·    Production of 124.1MT of crystalline iodine in Q1 2025 from Iofina's seven IOsorb® plants \n ·    Expect H1 2025 crystalline iodine production to be near 300MT \n ·    Demand for Iofina's crystalline iodine is strong \n ·    The iodine global spot price remains steadily above $70/kg, and prices are expected to stay at these levels into the second half of 2025 \n ·    IO#11 is currently on schedule and expected to be operational in the first half of Q3 2025  \n ·    Potential sites for IO#12 identified, with construction targeted to commence by the end of 2025 \n   \n 1 Non-IFRS measure - please refer to the Consolidated Statement of Comprehensive Income for calculation \n   \n Commenting, President and CEO, Dr. Tom Becker, stated: \n \"In 2024, Iofina achieved record revenues for the seventh straight year. Profitability was somewhat impacted by the renegotiation of two brine water supply contracts as well as logistical delays in December that pushed $2m of confirmed sales into 2025. However, good progress was made in increasing iodine production by 13% to 634MT with the additional output from the Company's newest plants. The Company also benefitted from higher average selling prices in the second half of 2024 as the spot iodine price increased. \n   \n \"The Company continued to execute its growth strategy with the support of strong cash flow and completed its latest iodine plant, IO#10. The robust levels of sales of crystalline iodine mirrored those achieved in 2023, whilst sales of our iodine derivatives products increased by $4m. Further investment in product R&D was made during the year to support customer demand, with new products being introduced in 2025, including a new iodine-based animal feed additive.  \n   \n \"Moving into 2025, our investment for growth continues and we are pleased to report that IO#11 is on track to be operating in the first half of Q3 2025. This will become our eighth IOsorb® plant in operation and our third new plant in three years, hitting our target of adding a new plant each year. \n   \n \"Since reporting our Q1 2025 update, we are pleased to confirm that brine water flows to our facilities are at expected levels after the prolonged effects of extreme winter conditions. We continue to work with our oil and gas partners to maximise the amounts of brine to our plants. We expect greater flows and higher iodine production efficiencies during the warmer months and are on track to produce about 300MT of crystalline iodine in H1 2025. At the same time, iodine spot prices have risen since 2024 and look set to remain above $70 per kilogram throughout 2025, which will support more profitable sales with Iofina continuing to sell all the iodine it is currently producing.\" \n   \n   \n Enquiries: \n   \n Dr. Tom Becker \n CEO & President \n Iofina plc \n Tel: +44 (0)20 3006 3135 \n   \n Nomad & Broker: \n Henry Fitzgerald-O'Connor/Harry Rees \n Canaccord Genuity Limited \n Tel: +44 (0)20 7523 8000 \n   \n Media Contact: \n Charles Goodwin/ Shivantha Thambirajah/Zara McKinlay \n Yellow Jersey PR Limited \n Tel: +44 (0)7747 788 221/+44 (0)7983 521 488 \n   \n   \n About Iofina: \n Iofina plc (AIM: IOF) is a vertically integrated company that specialises in the production of Iodine and the manufacturing of specialty chemical products. Iofina is the second largest producer of iodine in North America and operates the manufacturing entities Iofina Resources and Iofina Chemical. \n   \n LEI: 213800QDMFYVRJYYTQ84 \n ISIN: GB00B2QL5C79 \n   \n Iofina Resources \n Iofina Resources develops, builds, owns, and operates iodine extraction plants using Iofina's WET® IOsorb® technology. Iofina currently operates seven producing IOsorb® plants in Oklahoma and is consistently using technology and innovation to improve and expand its operations. \n   \n Iofina Chemical \n Iofina Chemical has manufactured high-quality halogen speciality chemicals derived from raw iodine, as well as non-iodine-based products. Iofina Chemical celebrated its 40 th anniversary in 2023 as a preeminent halogen-based specialty chemicals company. \n   \n www.iofina.com \n   \n                                                                 \n \n \n \n Contents                                                             \n   \n COMPANY INFORMATION....................................................................................................... ..2 \n CHAIRMAN'S STATEMENT........................................................................................................ ..3 \n FINANCIAL REVIEW.................................................................................................................. ..8 \n DIRECTORS' BIOGRAPHIES……................................................................................................... …10 \n STRATEGIC REPORT.................................................................................................................. 12 \n S172 STATEMENT………………………………………………………………………………………………………………………….23 \n CORPORATE GOVERNANCE……………………………………………………………………………………………………………25 \n DIRECTORS' REPORT................................................................................................................. 26 \n CORPORATE GOVERNANCE STATEMENT................................................................................... 28 \n ENVIRONMENTAL, SOCIAL AND GOVERNANCE (\"ESG\")…………………………………………………………………35 \n INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF IOFINA PLC........................................ 39 \n CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME ..................................................... 52 \n CONSOLIDATED BALANCE SHEET .............................................................................................. 53 \n CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY...................................... 54 \n CONSOLIDATED CASH FLOW STATEMENT ................................................................................. 55 \n COMPANY BALANCE SHEET ..................................................................................................... 56 \n COMPANY STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY............................................. 57 \n NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.......................................................... 58 \n \n \n   \n COMPANY INFORMATION                          \n Directors                                              L J Baller \n                                                                 T M Becker \n                                                                 M T Lewin \n                                                                 J F Mermoud \n                                                                 M Fallin Christensen \n                                                                 \n Secretary                                             Simon Holden \n   \n Company number                           05393357 \n   \n Registered office                             48 Chancery Lane \n                                                                 London WC2A 1JF \n   \n Auditor                                                 UHY Hacker Young LLP \n                                                                 Quadrant House \n                                                                 4 Thomas More Square \n                                                                 London E1W 1 YW \n   \n Nominated Adviser and Broker Canaccord Genuity Limited \n                                                                 88 Wood Street \n                                                                 London EC2V 7QR \n                                                                                 \n Solicitors                                              Keystone Law Limited \n                                                                 48 Chancery Lane \n                                                                 London WC2A 1JF \n   \n Registrar                                              MUFG Corporate Markets (UK) Limited \n                                                                 Central Square \n                                                                 29 Wellington Street \n                                                                 Leeds LS1 4DL \n   \n Financial PR                                        Yellow Jersey PR Limited \n                                                                 Thanet House \n                                                                 231-232 Strand \n                                                                 London WC2R 1DA \n \n \n   \n CHAIRMAN'S STATEMENT \n Introduction \n   \n In 2024 (the \"Period\"), Iofina continued to execute its strategic business objectives, resulting in record revenues for the seventh consecutive year, the highest iodine production volume in the Group's history, and the successful commissioning of IOsorb ® plant IO#10 in September 2024. Revenues rose by 9%, reaching $54.5 million (2023: $50m). However, adjusted EBITDA [1] decreased by 30% to $7.6m (2023: $10.8m), due to a combination of factors including the normalisation of fees in a key supply agreement, increased costs for chemicals and payroll, and delayed end of year shipments beyond Iofina's control. Despite these challenges, Iofina achieved a 13% YoY increase in iodine production, producing 634.1MT of crystalline iodine across our seven operating IOsorb ® plants. \n Our financial position remains strong, ending the year with a cash balance of $6.8m, representing a $0.3m increase despite substantial reinvestment into the business. Capital expenditures totalled $9.5m, primarily for developing IO#10, while $1.4m in term loan payments and $0.9m in taxes were also accounted for. Looking ahead, tax outlays are expected to increase as we have almost entirely utilised prior years' tax losses and other credits. \n The Group continues to monitor its key performance indicators (\"KPIs\") closely, including our bank debt-to-EBITDA ratio, which remains at a healthy 0.52. This low ratio reflects our solid financial standing, and is well below the industry standard. To support our ambitious growth plans, we have also secured a $10m loan facility for new projects, which is currently undrawn, however we anticipate using to further expand iodine production in the coming years. \n Commitment to Safety \n At Iofina, safety is not just a priority; it's a core value. As a specialty chemical manufacturer handling hazardous materials, our commitment to the safety and well-being of our employees and communities is paramount. We are proud to report that Iofina achieved another year without any Lost Time Incidents (\"LTIs\") in 2024, marking a continued record of operational safety that dates to April 2021. While we celebrate this achievement, we remain vigilant in our efforts to improve safety systems and prevent any incidents in the future. \n Iodine Market \n Iodine remains a key focus for Iofina, with approximately 86% of our sales coming from iodine or its derivatives. The global iodine market expanded significantly in 2024, with consumption rising by an estimated 7-8% YoY. Notably, iodine-based X-ray contrast media applications continue to be a major growth driver, now accounting for over 35% of global iodine consumption. Other iodine applications also showed strong improvement in 2024, and the outlook for market growth in both existing and new technologies remains positive. \n The price of iodine has seen fluctuations, but demand remains robust. The average realised price per kilogram of iodine for Iofina in 2024 was $68.6, slightly lower than in 2023. However, in the latter half of the year, iodine prices increased, with the average realised price in H2 2024 reaching $70.14/kg. As we enter 2025, we are seeing healthy demand, and prices are expected to remain strong, despite ongoing geopolitical risks. \n Iofina Resources \n Iofina Resources (\"IR\") is the division of the Group that manufactures iodine from brine waters. IR's mission is to explore for iodine sources, improve its IOsorb® WET® technologies, economically produce iodine from brines, and continually grow production volumes. The developed technologies that IR utilises for iodine production are proven and are being used at seven production facilities in Oklahoma, USA. The unique nature of IR's production and business plan is that we isolate iodine from brines co-produced from oil and gas operations. Without Iofina, the iodine in these streams would not be realised. By isolating iodine from waters already being produced, Iofina's operation has minimal environmental impact and arguably is the most environmentally friendly iodine operation in the world. \n In 2024, the Group invested and grew IR's operations, which resulted in numerous milestones for the Company. In September of 2024, IR commissioned IO#10 in our new core area in Oklahoma with a new brine supply partner. This resulted in IR operating seven IOsorb® plants producing commercial quantities of iodine, the most iodine-producing plants in operation in the Company's history. The business strategy of Iofina is to have multiple iodine plants in operation with multiple brine supply partners. This diversifies the Company's iodine production operations and reduces the risk of production losses. It also provides other expansion opportunities with these various brine supply partners. \n In 2024, IR produced 634.1MT of crystalline iodine, a 13.4% increase YoY and a record for the Company. Additionally, IR signed an agreement with a brine supply partner for its next IOsorb® plant, IO#11, and construction started late in the year. This plant is in our new core area of central Oklahoma, and with an existing partner that supplies brine to two of our plants in the NW Oklahoma region. We expect IO#11 to be online and producing iodine in Q3 2025. With eight plants expected to be producing iodine in 2025, Iofina anticipates another record year of iodine production. \n IR is committed to growing its iodine production. Once operational in Q3 2025, IR's newest facility, IO#11, will mark the third consecutive year that Iofina has built a new IOsorb® plant, all in a new core area in central Oklahoma. IO#11 is expected to add over 100MT of crystalline iodine production on an annualised basis. Further growth of our iodine production operations is planned. We have invested and continue to invest in exploration efforts for new iodine plants utilising our geological and business development teams. We are assessing multiple opportunities for additional iodine production facilities in both our current core area and in a new region for Iofina. We are evaluating the water chemistries for these projects and the economics of iodine production at these sites and anticipate having a commercial agreement soon for another IOsorb® facility. These opportunities are likely to result in larger projects than our existing operations and a step-change for Iofina's iodine production growth, with IR expecting to start construction on IO#12 before year-end.   \n To facilitate the expected accelerated growth of iodine production, IR is adding to its construction team to improve construction planning, investigate potential cost savings, and improve timelines to construct future IOsorb® facilities. Also, the recent expansion of our bank debt facilities for future plants provides additional funding sources to execute the expected growth plans. \n IR's five plants in the NW Oklahoma core area performed as expected in 2024. The total production of these plants between 2022-2024 has essentially been flat. During the first half of 2024, we renegotiated a supply agreement with a partner that supplies two of these plants. This agreement rebased fees to current market levels, resulting in higher overall costs. However, this agreement has facilitated a longer supply and has incentivised our partner to be more active in supplying the maximum brine possible to our plants. The positive relationships we have with our partners are essential to ensure consistent volumes and flow of brine to our plants. As our oil and gas partners' fields change, Iofina must have a good working relationship to ensure adjustments are made to their brine water gathering systems to maximise iodine production. New well drilling is uncommon in this area, but well workover programs are ongoing from our partners, and in conjunction with them we strive to maintain production quantities in the NW Oklahoma area. \n IR has not had a LTI since April of 2021 but remains committed to improving its safety standards. IR has a dedicated Environmental Health and Safety (\"EH&S\") manager in Oklahoma who works directly with the operations teams to identify and correct potential safety issues. When incidents do occur, they are thoroughly evaluated to identify the root cause so corrective actions can be taken to prevent future incidents. As a specialty chemical manufacturer which handles hazardous chemicals, we are continually training our team on safety and best practices and providing engineering solutions where appropriate. \n Iofina Chemical \n Iofina Chemical (\"IC\") is a halogen-centric specialty chemical manufacturer that produces -iodo, -fluoro and -chloro based compounds. IC sells these compounds and the Group's produced crystalline iodine globally. Record sales of $54.5m (2023: $50.0m) were realised in 2024. Sales of the Company's crystalline iodine were essentially flat with respect to 2023 ($24.7m vs $24.9m), and the realised average price per kg on a 100% basis was slightly lower YoY ($68.6 vs $69.19). However, H2 2024 pricing rose and averaged $70.14/kg. Iodine derivative sales jumped 31% to $16.9m in the Period compared to 2023. \n In 2023, IC reported lower than expected sales of Hydriodic acid (\"HI\") and Iodopropynyl butylcarbamate (\"IPBC\"), partly due to larger inventories carried by customers early in that year. Both of these compounds saw higher sales in 2024, with strong demand coming from agricultural and biocidal applications, respectively. Methyl iodide sales in the Period were slightly lower due to a highly competitive market, with prices for some opportunities at levels at which we chose not to participate. As previously communicated, changes in product mixes year over year are common, and we will continue to drive sales of all IC products as appropriate. Overall, more of the Group's crystalline iodine was sold through value-added iodine derivatives in 2024, equating to 206MT (2023: 185 MT) and we expect this trend to continue through 2025. \n IC production and sales of non-iodine halogen derivatives remain a strategic segment of the Group. These compounds add to the diversity of our offerings and support various applications, including biocides and semiconductor etchant uses. Non-iodine sales accounted for 14% of the Group's total sales in 2024. The Company expects semiconductor demand to be the key driver of sales for our non-iodine derivatives moving forward, as this sector continues to strengthen.   \n Safety and quality programs at IC remain a top priority to safely and efficiently produce our products with the consistency demanded by our customers. IC is an ISO 9001:2015 certified company and continues to measure its performance metrics, including the timely delivery of our goods that meet or exceed our customers' expectations. All of the internal quality objectives set by IC were met in 2024. IC has not had a LTI since November 2020 and our safety programs continue to be emphasised daily. We continually strive to be proactive versus reactive regarding safety improvements. We thoroughly evaluate any incidents or near misses to prevent negative events from occurring in the future. General chemical handling training, as well as IC-specific training scenarios are a significant part of our safety program. Through employee engagement, together we are continually improving our safety culture and performance. \n Research and Development (\"R&D\"), process improvements, and new product offerings are essential to the growth of IC. R&D efforts at IC in 2024 included work on new iodine compounds, fluorinated gases, and iodine recovered from industrial waste streams. Specific application areas we are targeting are for agricultural, automotive and pharmaceutical applications, to name a few. Late in 2024, we successfully began producing commercial quantities of an iodine-based animal feed additive, which will add to the IC iodine derivative sales mix in 2025. Capex for the commercialisation of this animal feed product was a significant cash outflow at IC in 2024. We have invested in our laboratories at IC and added a Ph.D. scientist to the team to enhance our ability to bring these projects to market. R&D and sales work together to identify new product opportunities within our core chemistries. Process improvements for IPBC and methyl fluoride resulted in both cost savings and safer processes. We are also investing in our ageing infrastructure at IC, whose manufacturing buildings are over 25 years old. \n Increased investments in sales and marketing, which began in 2023, continued into 2024 with positive results. As Iofina continues to expand and produce more iodine, a key goal is to expand our customer base to ensure excess demand for our increasing production. Investment in the Company's website and digital marketing initiatives has driven increased sales enquiries and new product opportunities. We continue to attend targeted trade events, and we regard our website as a 'constant tradeshow' to market our products and capabilities to specific audiences worldwide. IC expects to increase sales of value-added iodine-based derivatives in 2025 as the Group's iodine production continues to increase. \n Outlook \n Looking ahead to 2025 and beyond, Iofina is poised for continued growth. The commissioning of IO#11 and the planned expansion into additional iodine production projects will drive higher production volumes. We also expect the iodine market to continue to grow, driven by both established and emerging applications, including in solar technologies and refrigerants. \n We are optimistic about the future as we accelerate our growth plans. Our strong relationships with brine supply partners and customers, combined with our proven IOsorb® technology, position us well to become the largest iodine producer in North America over the next few years. The Company is evaluating several promising expansion opportunities, both within and outside our current operational areas, and we are confident that these projects will allow us to achieve a step-change in growth. \n In closing, I would like to extend my gratitude to our employees, business partners, and shareholders for their continued support. Together, we are building a strong foundation for Iofina's future, and I am excited about the opportunities ahead. \n   \n   \n \n Lance J Baller \n Non-Executive Chairman \n Iofina plc \n 9 May 2025 \n   \n   \n   \n \n   \n FINANCIAL REVIEW \n   \n Summary 2024 v 2023 \n ·    Seventh successive year of record revenue \n ·    Iodine production increased by 74.8MT (13%) to 634.1MT \n ·    Revenue increased by 9% from $50.0m to $54.5m \n ·    Gross profit decreased by 15% from $15.7m to $13.2m \n ·    Adjusted EBITDA declined by 30% from $10.8m to $7.6m \n ·    Profit before tax decreased by 42% from $8.3m to $4.8m \n ·    Net cash increased by $1.7m from $1.2m to $2.9m* \n ·    Capital investment into chemical and iodine plants was $9.5m (2023: $6.2m) \n * excludes lease liabilities \n   \n Trading results \n   \n \n \n \n \n Turnover \n \n \n Crystallised \n \n \n 2024 \n \n \n   \n \n \n Crystallised \n \n \n 2023 \n \n \n \n \n \n \n \n Iodine 85% \n \n \n Sales \n \n \n   \n \n \n Iodine 85% \n \n \n Sales \n \n \n \n \n \n \n \n MT \n \n \n $m \n \n \n   \n \n \n MT \n \n \n $m \n \n \n \n \n Crystallised iodine \n \n \n 423 \n \n \n 24.7 \n \n \n \n \n \n 423 \n \n \n 24.9 \n \n \n \n \n Iodine Derivatives \n \n \n 206 \n \n \n 16.9 \n \n \n \n \n \n 185 \n \n \n 12.9 \n \n \n \n \n Prilled iodine \n \n \n \n \n \n 5.1 \n \n \n \n \n \n \n \n \n 4.1 \n \n \n \n \n Total iodine sales \n \n \n 629 \n \n \n 46.7 \n \n \n \n \n \n 608 \n \n \n 41.9 \n \n \n \n \n Non-iodine \n \n \n \n \n \n 7.8 \n \n \n \n \n \n \n \n \n 8.1 \n \n \n \n \n Total sales \n \n \n \n \n \n $54.5 \n \n \n \n \n \n \n \n \n $50.0 \n \n \n \n \n   \n Revenue increased by 9% from $50.0m to $54.5m, driven by the demand for the Company's iodine derivatives products. Sales of crystallised iodine were on par with 2023 at 423MT for $24.7m (2023 423MT for $24.9m). The average realised price per kg (based on 100% prilled price equivalent) was $68.60 (2023: $69.19). \n Derivative compounds turnover increased by 31% from $12.9m to $16.9m, mainly reflecting stronger demand for mainstream products. Sales of non-iodine products fell back slightly by 4%, mainly due to a 5% volume decline in orders for the principal product (etchant gas). \n The overall sales of 629MT of crystallised iodine were in line with the increased plant production of 634MT. Production increased by 13% from 559MT in 2023 to 634MT in 2024. The increase was driven by the two newest built plants; with a full year's production from IO#9 plant (commenced in July 2023) and three months' production from IO#10 plant (commenced in October 2024). \n Gross profit fell by 15% ($2.5m) from $15.7m in 2023 to $13.2m. Product selling prices were similar to 2023 across the board, but the costs of iodine production per kg increased by some 15%. Of that, some 4% is attributable to inflationary increases in chemicals and payroll costs, while the remaining 11% relates to increases in fees paid mainly to oil and gas operators, in particular the rebasing exercise with one operator that was reported previously. \n Adjusted EBITDA fell by $3.2m (30%) from $10.8m (22% of sales) to $7.6m (14% of sales). As well as the factors mentioned above, administrative expenses increased by $0.7m (16%) with some investment in personnel and programmes to support the planned expansion of the business. \n Interest swap derivative asset \n The swap contract that pegs interest on 70% of the bank loan to 3.99% continues to deliver benefits in the continuing higher interest rate environment. The swap rebate for 2024 amounted to $125k (2023: $152k). The derivative asset resulting from the swap contract has been revalued at $92k as at 31 December 2024 (31 December 2023: $161k) by reference to market expectations for future SOFR rates, and an amount of $68k has been charged against 2024 income to reflect the unwinding of the benefit (2023 $88k). \n Profit before tax \n Profit before tax decreased by $3.5m (42%) from $8.3m to $4.8m. In addition to the factors set out above, there was also an increase of $0.4m in depreciation charges reflecting the addition of new plants such as IO#9 from July 2023 and IO#10 from October 2024. \n Tax \n All prior year tax reliefs and allowances available to the group have now been utilised except for $0.2m business credits still carried forward. Tax payments in the year totalled $901k (2023 $40k). The total tax charge for 2024 is $1.9m (2023 $1.8m), of which $0.7m (2023 $0.1m) is current tax and $1.2m (2023 $1.7m) is deferred tax. \n Capital investment \n The Group invested $9.5m in capital projects and equipment in the year (2023: $6.2m). Approximately $5.1m relates to the construction of the IO#10 plant in Oklahoma, with a further $0.7m spent on acquiring landowner leases for the same plant. $0.3m was spent on preliminary construction for the upcoming IO#11 plant in Oklahoma, and $0.6m on leasing activity with respect to the IO#9 plant. A further $0.7m is related to upgrades and improvements of the Oklahoma plants. $2.0m was spent on new projects, process improvements and replacements at the Iofina Chemical plant. \n Cash flow \n Cash started the year at $6.5m and ended $0.3m higher at $6.8m, after paying off $1.4m of the bank term loan in accordance with the borrowing schedule, investing $9.5m in capital projects and paying $901k tax. The previous net cash position of $1.2m improved by $1.7m to $2.9m. Net cash inflow from operating activities was $11.5m (2023 $8.6M) after taking into account $4.7m of favourable working capital movements. \n \n Malcolm Lewin \n Chief Financial Officer, Iofina plc \n 9 May 2025 \n DIRECTORS' BIOGRAPHIES \n Lance J. Baller, Non-Executive Chairman \n Mr. Baller was co-founder, CEO and President of Iofina Plc prior to his departure for health reasons in June 2013. Mr. Baller was the Group's Finance Director from 2007 until his appointment as CEO in 2010. Mr. Baller returned as Chairman in April 2014. Mr. Baller currently serves as a director and as sole or principal shareholder of several privately owned businesses, including Baller Enterprises, Inc. (personal holding company), Titan Au, Inc, Empire Leasing LLC, Valdez Au, Inc, Extrac Technologies Limited, Extrac, Inc, Wyoming Sand Company LLC (which all are in gold, sand, rock, SiO2 and gravel mining), Ultimate Investment (personal investment company) and Baller Family Foundation, Inc. (personal family foundation) plus many others that he has founded and successfully sold over the years. He is the former managing partner of Shortline Equity Partners, Inc., a mid-market merger and acquisitions consulting and investment company. Mr. Baller is also the former Managing Partner of Elevation Capital Management, LLC and is the former alternative investment hedge fund manager of the Elevation Fund. He is also a former Vice-President of Corporate Development and Communications of Integrated Biopharma, Inc. and prior to that a vice-president of the investment banking firms UBS and Morgan Stanley. Mr. Baller has been a CEO, interim CEO, Chairman, CFO and secretary of various private and public listed companies throughout his career. He has served as Chairman to various companies and has led successful restructurings. Mr. Baller has had extensive experience in all aspects of corporate finance. Mr. Baller currently is on the board of trustees of Index Fund and Digital Funds where he serves as the chairman of the audit committee and as the audit committee financial expert under Sarbanes-Oxley. \n Dr. Thomas M. Becker, Chief Executive Officer \n Dr. Becker has served as President/CEO of Iofina plc since 2014 and has led Iofina Chemical since March 2010. Previously, Dr. Becker was the Vice President of Research and Development at H&S/Iofina Chemical. Iofina bought H&S in July 2009. Dr. Becker has conducted extensive research in both inorganic and organic halogen-based chemistry. Dr. Becker has written a magnitude of published technical papers in his career. Prior to H&S Dr. Becker worked as an Oak Ridge Scholar on behalf of the US EPA and for various other chemical manufacturing companies. Dr. Becker earned a BS in Chemistry from Indiana University, and a PhD in Chemistry from the University of Cincinnati. He has extensive experience in scale-up of chemical processes from laboratory to pilot to full scale production. Dr. Becker is a former member of the Board of Governors of the Society of Chemical Manufacturers and Affiliates (\"SOCMA\"). \n Malcolm T. Lewin, Chief Financial Officer \n Mr. Lewin was named CFO and a director of the Group in November 2016 after having joined Iofina as interim CFO in February 2016. Mr. Lewin is based in the UK and has over 30 years of experience in finance and accounting for both public and private companies. As well as being a partner in a chartered accounting firm for 11 years, he has acted for various companies listed on AIM and other exchanges. In particular, from 2000 to 2003, he was the Finance Director of Oxford Metrics plc, an AIM company supplying motion capture and visual geometry systems. From 2004 to 2006, he was the Finance Director of Real Estate Investors plc, an AIM property investment company with interests in quality commercial and industrial properties. From 2006 to 2011, he was a Director and CFO of Hunter Bay Minerals plc, a junior mining company listed on the Toronto Venture Exchange with interests in South America and Canada. From 2011 to 2014, he was CFO and Treasurer of VolitionRX Limited, an OTC life sciences company focused on developing blood tests for a broad range of cancer types and other conditions. Mr. Lewin has an MA in Classics from Oxford University and qualified as a chartered accountant with Coopers & Lybrand. \n J. Frank Mermoud, Non-Executive Director \n Mr. Mermoud has more than 30 years' experience in international business, facilitating trade and investment in both the public and private sectors. He has held senior international, economic and commercial policy positions within the United States Government, having served as the Secretary of State's Special Representative for Commercial and Business Affairs at U.S. Department of State from 2002 to 2009. Mr. Mermoud has served as a Non-Executive Director of Cub Energy Inc. an oil and gas company headquartered in Houston, Texas, Director of ATC Communications and as a Senior Advisor to TD International \n Mary Fallin Christensen, Non-Executive Director \n Mary Fallin Christensen has served the State of Oklahoma for over 30 years. She was elected the first female Governor of the State in 2010 and was re-elected for a second term in 2014. Prior to serving as Governor, she held several state and federal positions, including serving as US Congresswoman for Oklahoma's 5th district between 2007-2011 and serving as Lieutenant Governor of Oklahoma between 1995-2006. Mary has been a major contributor to natural resources industries in Oklahoma, and implemented the State's first comprehensive energy plan as well as its state-wide water plan. She has held several positions, including Chair of the Southern State Energy Board, Chair of the Interstate Oil & Gas Compact Commission, and has served on the natural resource committee of the National Governors Association (NGA). Previously, she also served on the United States House of Representatives Committee on Small Business, was Small Business Chairman on the Republican Policy Committee, and was named the \"Guardian of Small Business\" by the National Federation of Independent Business. Mary has also served on numerous Boards of Directors for both commercial organisations and non-profits. \n   \n   \n \n STRATEGIC REPORT \n Principal activities and review of the business \n Iofina plc (\"Iofina\" or the \"Company\") is the holding company of a group of companies (the \"Group\") involved in the exploration and isolation of iodine and the production of specialty chemicals. Iofina Resources, Inc. is the Group's wholly owned subsidiary, which uses proprietary Wellhead Extraction Technology® (WET®) and WET® IOsorb® methods to produce iodine from brine. Large volumes of brine water are sourced from partnerships with oil and gas operators and saltwater disposal  (\"SWD\") operators in the United States, and these brines are used as a raw material to produce iodine at the Group's multiple IOsorb® plants. The Group's unique business model isolates a resource, iodine, from a produced waste stream that, without Iofina's technology, would be lost. The Company's WET® IOsorb® technology has unique elements that allow Iofina to handle brines which contain residual hydrocarbons and efficiently produce high-quality iodine. The Directors of the Company believe that Iofina's production process, which utilises brine water from third-party oil and gas production, is advantageous for long-term sourcing of the raw material, minimises production and expansion costs, and is the most environmentally friendly iodine production process. Iofina has an active geological team which models and explores for economically viable sources of brines for iodine production. Compounds containing iodine or other specialty chemicals are produced at and sold through the Company's wholly owned subsidiary, Iofina Chemical, Inc., with the major raw material being the Group's produced iodine. Additionally, the Group's crystalline IOflo® iodine is sold directly to other iodine end-users. \n Iodine is a rare element that is produced only in a few countries in the world, with approximately 90 per cent of global production coming from Chile (~60%) and Japan (~30%, including recycled waste streams). Iodine and its compounds have many human health-related applications, including X-ray contrast agents, pharmaceuticals, antiseptics, thyroid function, and others. Additional high-volume uses of iodine include LCD screen technology, material heat stabilisation, animal feed additives, biocides, catalysts and more. The Group produces iodine in the United States, where the overall global iodine production is approximately 5.5% of the world's total production, but where there is a large consumption of the world's iodine by various American users. Iofina believes it is the second-largest producer of iodine in North America. \n The ability of the Group to expand its iodine production quickly, at a low cost, differentiates Iofina from other iodine producers. This has been proven by the expansion of production and opening of new IOsorb® plants such as IO#9, where brine water flowed in June 2023, IO#10, which opened in September 2024, and IO#11, which is currently under construction and is scheduled to open in Q3 2025. Additionally, the Directors believe that the Group's technology to produce iodine is far more environmentally friendly compared to other producers. By using a produced water waste stream from the oil and gas industry to isolate iodine versus isolating iodine from ores, Iofina's process is considered ecologically efficient in obtaining a valuable product from a waste stream versus the environmentally intensive processes of mining iodine from ores by Chilean producers. \n   \n   \n Economically viable iodide-rich brine co-produced during oil and gas production is not common, and the Group's proprietary geological model to locate and anticipate iodide-rich sources is unique. The Directors of Iofina are committed to producing its products in a sustainable and environmentally friendly manner, and to improving communications regarding our long-term strategy in respect of Iofina's sustainable practices and other ESG tenets. \n The focus of Iofina's current business model is the production of iodine from brine and the creation and sales of specialty chemicals through Iofina Chemical. The Directors feel strongly that diversification within the business whilst focusing on our core expertise is important. Iofina Resources diversifies its iodine production through multiple IOsorb® production plants, with multiple brine supply partners in western Oklahoma. The technology the Group has developed, which utilises a waste resource already being produced, allows Iofina the ability to expand its operations quickly with minimal capital expenditure. Continued prudent growth in the number of IOsorb® plants increases production, profit, and diversification. Continued expansion of the Group's geological model provides opportunities for Iofina outside of its current core areas. \n Iofina Chemical produces a wide range of iodine-based products with applications in various industries including agricultural, pharmaceutical, biocides and others, whilst additional diversification is realised by the production of non-iodine-based products. The demand for various products can change, and Iofina Chemical's ability to produce a variety of products allows the Group to take advantage of growing markets while not being as affected by temporarily depressed or declining markets. \n Iodine spot prices rose significantly between 2021 through mid-year 2022, exceeding $70/kg by July 2022, and since that time, the iodine spot price has fluctuated between the mid-sixties and upper seventies dollars per kilogram. Supply and demand changes, as well as manufacturing cost increases, are the major factors influencing the iodine price. As an iodine manufacturer, iodine prices have a significant impact on the Group's gross profit margins. \n During 2024, Iofina believes the total global demand for iodine rebounded significantly from the prior year, and likely grew between 7-8% compared to 2023 levels. A significant factor in this increase was some inventory corrections contributing to the relatively high YoY growth. Demand for X-ray contrast media applications continued to lead the growth for iodine consumption, however, demand in most other iodine applications also increased YoY. In 2024, prices in H1 were lower than prices in H2, though the current spot iodine prices are comfortably above $70/kg. Contracted iodine prices for large customers are generally slightly lower than spot prices. Demand for Iofina's iodine and most of our iodine derivatives was robust in 2024, with Iofina Chemical seeing mixed demand for some of its iodine derivatives but strong demand for Iofina's crystalline iodine. Although it is difficult to predict, we expect demand for iodine to slightly increase in 2025 in comparison to H2 2024 levels. A recession in the USA or other major markets would likely have a negative effect on demand and prices. We expect 2025 iodine prices to remain steady to slightly higher compared to year-end 2024 levels. The inflation rate in 2024 has remained relatively high, but the rate has decreased. However, rising costs for Iofina's raw materials, labour and energy have increased our iodine production costs YoY. The Bull Mine project from Chilean producer S.C.M. Cosayach may be producing iodine in H2 2025, but it is our view that production from this mine will more likely commence in 2026. Iofina believes that any increased production from this mine will not cause an imbalance in supply but simply take on some of the industry's growth requirements. \n The Directors recognised that, as the Company built its IOsorb® plants, Iofina's iodine production costs needed to be amongst the lowest in the industry to be competitive. Between 2014 and 2017, numerous initiatives were successfully implemented to optimise Iofina's technology and lower production costs. Once most of these goals were achieved and iodine market conditions became more favourable, the Directors commenced the next phase of Iofina's business plan with a focus on growth. In early 2018, the Group's newest iodine plant at the time, IO#7, was completed. By expanding our operations and building IO#7, the Group successfully lowered its overall iodine production costs with its most efficient plant at that time. The next major growth development occurred in Q2 2019 when the Company performed an equity raise to reduce debt and provide working capital for expansion projects. The result was the construction of IO#8, which began in late 2019 and was completed in early April 2020. The Group has continued its expansion efforts and successfully opened IO#9 in June 2023, IO#10 in September 2024, and is currently constructing IO#11, which is expected to open in Q3 2025. \n The Group is committed to establishing new routes to growth and is investigating new locations and partnerships to expand iodine production. Lessons learned from past expansion play a role in management's iodine plant growth. Building of future IOsorb® plants will be done prudently to ensure, to the best of our knowledge, that Iofina has a long-term, low-cost iodine production. With an expanding iodine market and Iofina's improved balance sheet, Iofina will likely embark on additional iodine plants after IO#11 completion, although this will only be done with the correct evaluations of potential future sites and market conditions. \n The Directors are aware of the risk of declining brine availability if our partners do not maintain or increase their hydrocarbon production in areas that supply the Group's IOsorb® plants. The Group continues to investigate the economics and the technology to have better control of the iodide-rich brine supplies that feed the current and future plants. \n Iofina Chemical continues to be recognised as a world-renowned halogen specialty chemical producer. Vertical integration of the Group's iodine into iodine derivatives gives Iofina's customers stability of supply in addition to the long-standing quality and technical support to Iofina's global customers for the goods sold to them. Additionally, the non-iodine-based halogen derivatives produced by Iofina Chemical give the Group further diversity. Iofina Chemical invested in multiple projects in 2024 and will continue to invest in areas to expand current products and develop new products for Iofina using the Company's core expertise. \n   \n   \n   \n   \n   \n Key Performance Indicators \n The Directors review a range of financial indicators to assess and manage the Group's performance, including the following relating to revenue and iodine production: \n \n \n \n \n \n \n \n \n \n \n   Year ended \n \n \n   \n \n \n   Year ended \n \n \n   \n \n \n \n \n \n \n \n \n \n \n  31 December \n \n \n   \n \n \n  31 December \n \n \n   \n \n \n \n \n \n \n \n \n \n \n      2024 \n \n \n   \n \n \n      2023 \n \n \n   \n \n \n \n \n \n \n \n \n \n \n      $'000   \n \n \n \n \n \n      $'000   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n   \n \n \n   \n \n \n \n \n Revenue from sales of iodine and iodine derivatives \n \n \n \n \n \n $46,664 \n \n \n \n \n \n $41,940 \n \n \n \n \n \n \n \n Revenue from non-iodine products \n \n \n \n \n \n $7,801 \n \n \n \n \n \n $8,096 \n \n \n \n \n \n \n \n Total revenue \n \n \n \n \n \n $54,465 \n \n \n \n \n \n             $50,036 \n \n \n \n \n \n \n \n Total pounds of product shipped (LBS '000) \n \n \n \n \n \n 2,052 \n \n \n \n \n \n 1,824 \n \n \n \n \n \n \n \n Crystallised iodine produced (Metric Tonnes) \n \n \n \n \n \n 634 \n \n \n \n \n \n 559 \n \n \n \n \n \n \n \n IOsorb® plants in operation (year-end) \n \n \n \n \n \n 7 \n \n \n \n \n \n 6 \n \n \n \n \n \n \n \n   \n Commentary on some of the above indicators is in the Chairman's Statement on pages 3 to 7. \n Further commentary on the results for the year and the financial position at the year-end is in the Financial Review on pages 8 to 9. \n Objectives \n At the end of 2024, the Group had seven operating IOsorb® iodine production facilities in the two core areas of Oklahoma and an eighth under construction. While the theoretical capacity of these plants is very high, the practical capacity of the plants is somewhat lower. Practical capacity considers multiple causes of downtime, including weather, repairs and maintenance, inadequate brine (low parts per million of iodine, heavily contaminated brine or little to no supply), power outages and other conditions. As we have proven our technology and continue to improve operations at current facilities, more accurate practical capacity operating targets have been realised, as well as improvements for maximising practical capacity. \n Iofina Resources' unique business model allows the Group to determine sites for new iodine production plants utilising existing brine produced from oil and gas production and quickly bring these sites into production. The execution of a prudent growth strategy continued with the start of construction of IO#8 in late 2019, which was completed in April 2020, and we continue to open new iodine plants, including IO#9 which opened in June of 2023 and IO#10 which opened in September 2024. While technology and efficiency improvements at current facilities remain an ongoing priority, the Company continues to explore new iodine production opportunities. This objective of strategic expansion is focused on sites that will continue to improve Iofina's output with low production costs. As previously stated, the Group expects to continue its iodine production expansion and expects to double iodine production from 2021 levels soon. In late 2024, the Group began construction on IO#11 with an expectation to complete this plant in Q3 2025. \n Brine supply to our IOsorb® plants can be affected by regulatory changes and adjustments to our partners' saltwater disposal systems and oil production programs. Iofina continues to work with its partners to implement plans to maximise brine input and iodine output at each of our existing sites. The mutually beneficial relationship between Iofina and its brine supply partners, which allows Iofina to create iodine and for the brine suppliers to realise value from a waste stream, is a key component for existing projects and potentially for future sites. Continued efforts by our business development and geological teams have identified numerous further expansion opportunities. The Company will continue to evaluate and potentially execute these with current and new potential brine supply partners when management determines the proper timing for new sites. \n The timing of future iodine production growth will be dependent on a series of factors. These include the stability or increase of iodine prices, global demand, Company cash flow, availability and cost of production at new sites, partnership agreements, oil prices, and production in areas with high iodide content brines, and the regulatory landscape concerning brine injection. Lower oil prices can lead to lower oil production if certain wells become uneconomical, which in turn can affect brine supplies from our partners. Therefore, the Group is increasingly focused on evaluating alternative brine sourcing opportunities to have better control of brine supply at future sites. Whilst the Directors are focused on expanding production capacity in the right manner, it is also important to maintain the Company's strong balance sheet and cash flow. Expansion in 2025 will occur with the completion of IO#11, and we expect to begin construction on IO#12 this year. The Directors will evaluate market conditions and detailed information on potential future plant sites before spending capital on new IOsorb® plants. \n Iofina Chemical has continued its progress to improve current processes, ensure capacity meets demand, and continue R&D efforts to bring new product lines in line with our core chemistries. These include investments in both iodine-based products and other non-iodine specialty chemicals. Significant capital investment projects in 2024 at Iofina Chemical included reconfiguration and enhancements to produce a new feed additive and improvements to the methyl iodide and methyl fluoride production processes. In 2024, Iofina Chemical continued its efforts to improve the marketing of the organisation and its products, including improvements to the corporate website . Iofina is now actively selling, in significant quantities, an iodine-based animal feed additive. We are also actively pursuing multiple R&D projects aimed at new iodine and halogen-based compounds, many of which are for new applications. The Company proactively attended trade shows to help provide opportunities for both new customers and partnership building. It is also expected that Iofina Resources' expansion plans over the next few years will result in the need for expansion of our customer base for our iodine derivative products, and we have expanded our customer base in 2024. \n Safety is a high priority for the Group. Iofina handles and manufactures specialty chemicals, some of which are hazardous. We are proud of our safety record and make a concerted effort to continually improve our safety systems and culture. The Group has not had a LTI in over four years. \n Lastly, the Directors are committed to employee retention whilst controlling costs. Employee safety and training are also key objectives for the Group. A key component for the Group is the high operational gearing whereby the Group's business model allows for the control of administrative and fixed expenses whilst expanding operations.    \n   \n   \n Principal risks and uncertainties \n Iofina plc is subject to a number of risks and uncertainties, which could have a material effect on its business, operations or future performance, including but not limited to: \n Raw Materials: Brine water produced from oil and gas operations is the raw material source for Iofina's iodine production. The Group continues to evaluate opportunities to integrate its IOsorb® process into produced brine water streams associated with hydrocarbon operations in the USA and occasionally other brine stream sources throughout the world. However, there is significant risk and no guarantee as to the volume of commercial quantities of iodide-rich brine available to our current and future IOsorb® plants. Oil and gas prices and demand for these hydrocarbons generally will dictate whether our partners continue to expand their production or possibly reduce hydrocarbon output. Changes in hydrocarbon production by our partners will change the total brine availability to isolate iodine and thus the iodine output of our IOsorb® plants. The saltwater disposal wells that our partners operate may have temporary or permanent issues, which would likely affect the brine supply to IOsorb® plants. In the past, reduction of capital spent by our partners for new drilling and completion of wells in our core area resulted in a decline in the total amounts of brine co-produced with oil and gas in our key areas. Current brine volume availability to existing plants is relatively steady to slightly declining and could reduce further. Contract terms regarding brine supply are a risk to our iodine source. Iofina strives to maintain good relationships with our partners who provide the brine water to our existing IOsorb® plants. Maintaining a positive, mutually beneficial relationship with our brine suppliers is a top priority for the Group. In 2024, Iofina renegotiated a brine supply contract with an existing partner to normalise fees to the current market rates, which resulted in higher costs of production but a longer-term supply commitment. By continuing an aggressive water testing program, active exploration utilising geology and data analytics, and incorporating reservoir and production engineering, we are constantly evaluating new potential locations for iodine extraction in our core area and other locations. \n Iofina Chemical sources raw materials throughout the globe. Understanding the supply chain of these materials is important to minimise supply disruptions. Global supply chain disruptions, tariffs, and logistic bottlenecks can adversely affect the ability to obtain key raw materials and may result in increased costs for these materials. Iofina Chemical has long-term relationships with many of its suppliers. Additionally, when possible, Iofina Chemical sources materials from multiple suppliers to reduce risk. Increased regulations can adversely affect the availability and cost of materials. Prices of raw materials and energy can change, and if increases in these prices are not able to be passed on to our customers, it would negatively affect margins for our products. \n Global Crises : Global crises, while rare, can impact businesses significantly. The COVID-19 pandemic was an example of such an event. Similar events in the future could have a negative effect on the markets we operate in and on the Group's profits. For instance, COVID-19 resulted in a global economic slowdown and a reduced demand for many of Iofina's products. These types of events can also result in delays in shipping, worker limitations, business closures and other challenges which may negatively affect the Group. The diversity of Iofina's products, along with the uses of products in areas like human health applications makes Iofina less susceptible than many other businesses. During the COVID-19 pandemic, Iofina quickly implemented many protocols to minimise any adverse impact on the business, but these protocols only reduce risk and cannot eliminate it. COVID-19 or other events such as political unrest, acts of aggression (wars), other health crises, major weather events or others would likely have an impactful effect on the Group. \n Currently, Russia's invasion of Ukraine and the current Middle East conflicts have not directly affected Iofina's operations. Additional political sanctions or negative impacts on global economies because of these conflicts may adversely impact our business. Iofina does not have any current sales exposure with Russia, Ukraine, or in or around the Middle East. Other geopolitical events could negatively affect the Group. Issues such as the current USA government's implementation of tariffs may influence Iofina's ability to source materials at current pricing levels and may impact the ability of Iofina to sell its goods competitively in certain countries. \n Environmental: The Group's operations are subject to the environmental risks inherent in the exploration and chemical industries. The Group is subject to environmental laws and regulations in connection with all its operations. Although the Group intends to comply in respect of all applicable environmental laws and regulations, there are certain risks inherent to its activities, such as accidental spills, leakages or other circumstances that could expose the Group to extensive liability. Accordingly, the Group promotes, wherever possible, environmental sustainability in its working practices and seeks to minimise, mitigate, or remedy any harmful effects from the Group's operations on the environment at each of its operational sites. Regulations on brine injections in the state of Oklahoma into the Arbuckle geological formation in the Group's core area due to seismic activity were implemented mainly in late 2015 to early 2016 and have affected Iofina's partners' brine disposal into this formation near some of our sites. This reduced some brine availability to Iofina at some sites. The Group and its partners have implemented and continue to implement strategies to minimise the effect on the availability of iodine-rich brine to Iofina due to these regulations. Moving forward, the Group and its partners will continue to monitor these risks and act accordingly. While the frequency and intensity of earthquakes have significantly reduced in Oklahoma, and this reduction is likely a result of regulated changes in brine disposal into the Arbuckle formation, there is still a risk of additional earthquakes and regulation moving forward. Changes in laws or regulations of brine streams could affect brine availability or the cost of producing iodine. \n As a specialty chemical manufacturer, new regulations based on chemical uses, adverse human health or environmental impact are a risk and may lead to higher costs or controlled production. Greenhouse Gas ('GHG') regulations in the USA have not impacted Iofina's ability to produce products it currently manufactures; however, if production allocations are reduced in the future, this would likely negatively affect Iofina's production output. Other environmental regulations that restrict the manufacturing of chemicals that Iofina produces would also cause a similar effect. The Group has a robust Environmental, Health and Safety program and strives for continual improvement in this area. Additionally, Iofina Chemical is a certified Chemstewards® facility and has obtained ISO 9001:2015 certification. \n Changes in Markets and Competition: Iofina is diversified in the markets we serve. As a result, small changes to these markets generally will not materially affect our business. However, major disruptions in key markets that use iodine or the other specialty compounds we manufacture could have a material negative effect on the Group. There is still a relatively high-interest rate global environment implemented by central banks to combat inflation, and whilst these rates have generally ebbed, the higher rates may slow down global economies. The current tariff changes may cause both risk and reward for Iofina depending on the final policies of the US government and the markets we sell into and source from. Also, higher tariffs may result in an economic slowdown and supply chain disruptions. A significant contraction in global economies may cause less demand for and pricing of the Group's goods. \n Additionally, increased competition in the markets we serve could negatively impact prices or the ability to sell our goods. In particular, large increases in iodine production from competitors could negatively affect iodine prices and the Group's market share. Future planned expansions of iodine production in Chile may change the market's supply and demand dynamics. However, the exact change is subject to several factors, the scale of expansion, the timing of increased supply and the overall global demand for iodine at the time of new supplies coming onstream. \n Iodine Price volatility: Iodine's price and demand are highly dependent on a variety of factors, including international supply and demand, the level of consumer product demand, the price and availability of alternatives, actions taken by governments and global economic and political developments. Increases in current iodine producers' production capacities or new iodine producers entering the market could impact prices. Fluctuations in iodine prices and a material decline in the price of iodine would have a material adverse effect on the Group's business, financial condition and operations. After a lull in demand during the COVID-19 pandemic, demand for iodine rose significantly in H1 2021. Continued substantial demand for iodine and iodine-incorporated products has continued through today. As a result, iodine prices rose significantly between H1 2021 and mid-year 2022. During H2 2022, iodine prices rose above $70/kg and have fluctuated between the mid-sixties and upper seventies per kilogram. Current spot iodine prices are in the seventies per kilogram. The costs to produce iodine have also significantly increased since the pandemic. \n Key customers: There are a limited number of potential customers who purchase many of the products of the Group's chemical business, which makes relationships with these customers, as well as the success of those customers' businesses, critical to the Group's success. These customers are in many different countries. The loss of one or more major customers could harm the business, operating results and financial condition of the Group. Iofina is continuing to diversify its customer base in its Chemical subsidiary. In addition, Iofina works closely with all its customers to develop strong relationships, with a significant focus on ensuring that its products and services meet the needs of its customers and are of the highest quality. In 2024 Iofina had five customers which each contributed over 5% of sales, with ongoing positive relations with these customers. \n   \n   \n Key Partners: Iofina partners with third-party oil and gas producers and saltwater disposal operators to process iodine-rich brine they extract with oil and gas production. Fluctuations of oil and gas prices in the US can affect the financial stability of oil and gas producers. Any changes in operator status or the financial strength of our partners are a risk to brine production and availability. The Group has agreements with our partners to reduce any risk of change in status. Material changes in these brine supply contracts with our partners may affect the Group. In 2024, Iofina renegotiated a brine supply agreement with an existing supplier to reflect market rates for two of our sites. In 2024, Iofina also executed a new agreement for IO#11 with a current brine supply partner. \n Regulation and Trade : Iofina's businesses are subject to various significant international, federal, state, and local regulations currently in effect, including but not limited to environmental, health and safety, and import/export regulations. These regulations are complex, change frequently, can vary from country to country, state to state and have generally increased over time. Iofina may incur significant expenses to comply with these regulations or to remedy violations of them. The current federal administration in the USA is likely to reduce regulatory burdens in our industries versus the previous administration, however, this has not been verified. Any new regulation in the USA or elsewhere that would increase the cost of raw materials the Group uses, reduce the availability of these raw materials or cap production of products the Group produces would likely reduce margins. \n Any failure by Iofina to comply with applicable government regulations could result in non-compliant portions of our operations being shut down, product recalls or impositions of civil and criminal penalties and, in some cases, prohibition from distributing our products or performing our services until the products and services are brought into compliance, which could significantly affect our operations. \n The Group closely monitors regulations across its businesses to ensure that it complies with the relevant laws and regulations. While Iofina believes that it is compliant with all laws and regulations, any instances of non-compliance would be brought to the attention of the appropriate authorities as soon as possible. \n Trade relationships between the USA and other areas of the world have deteriorated significantly in early 2025. Increased tariffs implemented by the USA and retaliatory tariffs imposed by other governments against the USA have the potential to adversely affect both raw material cost and supply, and final product sales for Iofina in certain areas of the world. Iofina has been proactive in reducing the impact of tariffs, which directly impact the Company's supply and sales lines; however, the latest USA tariffs are more encompassing than anticipated and may provide risk in sales margins and may also cause a global economic downturn, which may affect the iodine market. \n Inventory Fluctuations: Inventory level changes can cause financial instability. High inventories negatively affect cash flow, while low inventories can negatively affect sales volumes and customer relationships. In 2021, the Group started the year with larger-than-normal iodine inventories and ended the year with lower-than-normal iodine inventories. In 2022, the Group ended the year with more normalised iodine inventories and slightly higher than ideal specialty chemical derivative end products and in-process goods. By the end of 2023, the total inventory levels declined slightly from 31 December 2022 levels. Inventories at the end of 2024 were flat relative to the end of 2023, and the Group actively works to maintain a proper inventory of goods to achieve its business goals. Inventories are cyclical within our business, and management closely tracks these inventories along with known and anticipated demand for products to maintain appropriate inventories. \n Insurance may not cover all material losses: The Group strives to carry standard insurance for our industry that would minimise loss when events occur. However, certain scenarios or events may not be covered by insurance and could have a negative material impact on the Group. For example, cyber-attacks have increased globally, and while the Group has increased measures to thwart potential cyber-attacks, we cannot guarantee these measures will prevent a cyber-attack for which we do not carry specific insurance. \n Taxes: The Group has tax obligations, which have become more significant as tax losses utilised against US Federal tax liabilities have diminished. Any increases in federal or local taxes could have a negative effect on cash flows of the organisation. \n Personnel: As a small technical organisation, the loss of key technical or senior management employees could negatively affect the business. Additionally, the USA labour market remains tight. This could result in increased labour costs and a risk of delays or inability to produce products due to labour shortages. \n Significant Shareholders: Significant shareholders may have the ability to effect changes that result in a material adverse effect on the organisation, including a change in senior management or control of the Group or its Board of Directors. \n Interest Rates and Inflation: As a result of the 2020 debt changes that served to significantly reduce both overall debt and interest rates for the Group, a significant portion of the debt carries variable interest rates. While overall debt has continued to decline, interest rates remain relatively high and have negatively impacted debt costs. Any interest rate increases from current levels would negatively impact debt costs for the Group. In 2024, the Group adjusted its capital improvement credit line to a $10 million term loan with a drawdown period through to 13 March 2026, to be used for expenditures for the current IO#10 & IO#11 plants and the forthcoming IO#12 plant, as well as other Capex projects as appropriate. This line carries variable interest rates. \n Inflation in the USA continued to decline in 2024 but remains relatively high. The costs of goods, energy, and labour for Iofina have increased substantially in the last few years, and while the inflation rate is declining, cost increases are still a risk for the Group moving forward, especially during a period where new tariffs are increasingly prevalent. The ability to maintain margins in an increasingly inflationary environment is uncertain. Additionally, as prices rise, there is a risk that some products the Group sells may be replaced by cheaper alternatives, which could result in an adverse effect on the business. \n Litigation: While the Group has no pending litigation matters, there are possibilities that future judgements or settlements could result in an adverse effect on our business. \n   \n Going concern \n The Group has performed well in 2024 and is performing as anticipated in 2025. In 2024, the Group achieved a profit before taxation of $4.8m and a net cash inflow from operating activities of $11.5m. Net cash of $1.2m at the end of 2023 improved to net cash of $2.9m as of 31 December 2024. The markets into which the Group sells its products continue to experience good demand. Iofina has obtained additional and appropriate credit facilities to fund current business growth objectives. The Group has prepared forecasts and projections that indicate there are adequate resources to continue in operational existence for the foreseeable future. The Directors consider it appropriate to continue to adopt the going concern basis in preparing the financial statements. \n On behalf of the Board \n \n   \n Dr. Thomas M. Becker \n Chief Executive Officer and President \n 9 May 2025 \n   \n   \n \n   \n   \n   \n STATEMENT IN ACCORDANCE WITH SECTION 172 OF THE COMPANIES ACT 2006 \n   \n As required by section 172 of the Companies Act 2006, a director of a company must act in a way they consider, in good faith, would most likely promote the success of the company for the benefit of its shareholders. In doing this, the Director must have regard, amongst other matters, to the: \n (a)       likely consequences of any decision in the long-term; \n (b)       interests of the company's employees; \n (c)       need to foster the company's business relationships with suppliers, customers, and others; \n (d)       impact of the company's operations on the community and the environment; \n (e)       company's reputation for high standards of business conduct; and \n (f)        need to act fairly as between members of the company. \n   \n As a Board our aim is always to uphold the highest standards of governance and business conduct, taking decisions in the interests of the long-term sustainable success of the Group, generating value for our shareholders and contributing to wider society. We recognise that our business can only grow and prosper over the long term by understanding the views and needs of our stakeholders. Engaging with stakeholders is key to ensuring the Board has informed discussions and factors stakeholder interests into decision-making. \n The Directors insist on high operating standards and fiscal discipline and routinely engage with management and employees of the Group to understand the underlying issues within the organization. Additionally, the Board looks outside the organization at macro factors affecting the business.  The Directors consider all known facts when developing strategic decisions and long-term plans, taking into account their likely consequences for the Group. \n The Directors and management are committed to the interests and well-being of Iofina's employees. Iofina is committed to the highest levels of integrity and transparency possible with employees and other stakeholders. Safety initiatives, consistent training, strong benefits packages and open dialogue between all employees are just some of the ways the Group ensures its employees improve skill sets and work hand-in-hand with management to improve all aspects of the Group's performance. \n Other stakeholders include customers, suppliers, lenders, industry associations, government and regulatory agencies, media, local communities and shareholders. The Board, both individually and together, consider that they have acted in the way they consider would be most likely to promote the success of the Group as a whole. To do this, there is a process of dialogue with stakeholders to understand the issues that they might have. Iofina believes that any supplier/customer relationship must be mutually beneficial, and the Group is known for its commitment to details to its customers. Communications with the Group's lenders and shareholders occur on an ongoing basis and as questions arise. The Group also communicates through media interviews and social media platforms. \n The Directors are committed to positive involvement in the local communities where we operate. Part of this commitment is our program 'Iofina Gives Back', where Iofina supports local charities by donating time and goods. Additionally, Iofina adheres to environmental regulations at its sites and supports sustainability practices where possible. \n Integrity is a key tenet for the Directors and the Company's employees. The Company believes that any partnership must benefit both parties. We strive to provide our stakeholders with timely and informative responses and are always striving to meet or exceed customers' needs. \n The Board recognises its responsibilities under section 172 as outlined above and has acted at all times in a way consistent with promoting the success of the Company with regard to all stakeholders. \n   \n \n   \n CORPORATE GOVERNANCE \n The Board considers that good corporate governance is a key driver for the success of the business. Accountability to the Company's stakeholders, including shareholders, customers, suppliers and employees is a vital element in that governance. The Board's commitment to robust governance practices remains key, ensuring that Iofina operates in a manner that is consistent with the highest corporate governance standards. \n The Board is committed to effective corporate governance as the basis for delivering long-term value growth and for meeting shareholder expectations for proper leadership and oversight of the business. \n To help ensure that the Company has an effective corporate governance model, the Board has adopted the Quoted Companies Alliance Corporate Governance Code (the \"QCA Code\"). Iofina applies the principles of the QCA Code as the Board believes that adherence to the QCA Code provides a strong foundation for delivering shareholder value and serves to mitigate and minimise risks. \n This Statement, in conjunction with the corporate governance statement published on our website (see: https://iofina.com/investors/aim-rule-26/corporate-governance/ ), follows the 10 principles of the QCA Code and how we have applied it. The following sections of the Corporate Governance Statement explain how the QCA Code is applied by the Company. \n The Board comprises five Directors: the Non-Executive Chairman, two full time Executive Directors and two Non-Executive Directors (each of whom is considered by the Board to be independent), reflecting a blend of different experiences and backgrounds. The function of the Chairman is to supervise and manage the Board and to ensure its effective control of the business. The Board believes that its composition brings a desirable range of skills and experience given the Group's challenges and opportunities as a publicly quoted company, while at the same time ensuring that no individual (or group of individuals) can dominate the Board's decision-making. \n The Board meets regularly to review, formulate and approve the Group's strategy, budgets, corporate actions and oversee the Group's progress towards its goals. The Board has established the following committees to fulfil specific functions, each with formally delegated duties and responsibilities: the Audit Committee and the Remuneration Committee. These committees meet on a regular basis and at least two times a year. The Board has elected not to constitute a dedicated nomination committee, instead retaining such decision making with the Board as a whole. This approach is considered appropriate to enable all Board members to take an active involvement in the consideration of Board candidates and to support the Chair in matters of nomination and succession. \n From time to time, separate committees may also be set up by the Board to consider specific issues when the need arises. \n   \n   \n   \n   \n   \n DIRECTORS' REPORT \n The Directors present their report and financial statements for the Group for the year ended 31 December 2024. \n Strategic report \n Included in the Strategic Report on pages 12 to 22 is the review of the business and principal risks and uncertainties. \n Post balance sheet events \n There were no significant post balance sheet events. \n Directors' responsibilities for the preparation of the financial statements \n The Directors are responsible for preparing the Strategic Report and the Directors' Report and the financial statements in accordance with applicable law and regulations. \n Company law requires the Directors to prepare Group and Company financial statements for each financial year. The Directors are required by the AIM Rules for Companies (as published by the London Stock Exchange) to prepare Group financial statements in accordance with UK adopted International Accounting Standards, and have elected under company law to prepare the Company financial statements in accordance with International Accounting Standards. \n The financial statements are required by law and UK adopted International Accounting Standards to present fairly the financial position of the Group and the Company and the financial performance of the Group. The Companies Act 2006 provides, in relation to such financial statements, that references in the relevant part of that Act to financial statements giving a true and fair view are references to their achieving a fair presentation. \n Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Company and of the profit or loss of the Group for that period. \n In preparing the Group and Company financial statements, the directors are required to: \n a.        select suitable accounting policies and then apply them consistently; \n b.       make judgements and accounting estimates that are reasonable and prudent; \n c.        state whether they have been prepared in accordance with UK adopted International Accounting Standards; and \n d.       prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group and the Company will continue in business. \n   \n The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Group's and the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. \n The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Iofina plc website. \n Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. \n Results and dividends \n The results for the year are set out in the consolidated statement of comprehensive income and detailed in the Financial Review. \n The directors do not recommend payment of a dividend. \n Financial instruments and risk management \n Note 14 details the risk factors for the Group and how these risks are managed, including the degree to which it is appropriate to use financial instruments to mitigate risks. \n   \n Directors \n The directors who served during the year and subsequently were as follows: \n Lance J. Baller, Non-Executive Chairman \n Dr. William D. Bellamy, Non-Executive Director (resigned June 2024) \n J. Frank Mermoud, Non-Executive Director \n Mary Fallin Christensen, Non-Executive Director \n Dr. Thomas M. Becker, Chief Executive Officer and President \n Malcolm T. Lewin, Chief Financial Officer \n   \n Statement as to disclosure of information to the auditor \n The directors who were in office on the date of approval of these financial statements have confirmed that, as far as they are aware, there is no relevant audit information of which the auditor is unaware. Each of the directors has confirmed that they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor. \n Auditor \n UHY Hacker Young were appointed as auditors to the Company and in accordance with Section 485 of the Companies Act 2006 a resolution proposing that they be reappointed will be put to the next Annual General Meeting. \n On behalf of the Board \n \n Dr. Thomas M. Becker \n Chief Executive Officer and President \n 9 May 2025 \n CORPORATE GOVERNANCE STATEMENT \n The Board is committed to effective corporate governance as the basis for delivering long-term value growth and for meeting shareholder expectations for proper leadership and oversight of the business. The Board is responsible for the overall leadership, strategy, development and control of the Group in order to achieve its strategic objectives. \n The Company applies the principles of the QCA Code as the Board believes that adherence to the QCA Code provides a strong foundation for delivering shareholder value and serves to mitigate and minimise risks. The Directors are also required to comply with certain duties that are contained in the Companies Act 2006, and the Directors comply with those duties. \n The Group is led and controlled by the Board which currently consists of two Executive Directors and three Non-Executive Directors. Board meetings are held on a regular basis and no significant decision is made other than by the Directors. All Directors participate in the key areas of decision making. \n Business model, strategy and approach to risk \n The Group focuses on the exploration and production of iodine and halogen-based specialty chemical derivatives. We identify, develop, build, own and operate iodine extraction plants, currently focused in North America, based on Iofina's Wellhead Extraction Technology® (WET®) IOsorb® technology. The Group has complete vertical integration from the production of iodine in the field to the manufacture of the chemical end-products derived from iodine to the consumer, and the recycling of iodine using iodinated side-streams from waste chemical processes. We use patented or proprietary processes throughout all business lines. Together these allow us to be the Technology Leaders in Iodine®. The Group's strategy is to continue to focus on the exploration and production of iodine and iodine specialty chemical derivatives, delivering growth throughout our operations. Growth is intended to be achieved with the continued upgrading and expanding of our plants, which in turn will boost the level of iodine production. \n All the Group's activities involve an ongoing assessment of risks, and the Group seeks to mitigate such risks where possible. The Board has undertaken an assessment of the principal risks and uncertainties facing the Group, including those that would threaten its business model, future performance, solvency and liquidity. Further, the Board has considered the longer-term viability of the Group, including factors such as the prospects of the Group and its ability to continue in operation for the foreseeable future. The Board considers that the disclosures outlined in the Strategic Report on pages 12 to 22 are appropriate. The Board considers that these disclosures provide the information necessary for shareholders and other stakeholders to assess the Group's future viability and potential requirements for further capital to fund its operations. \n Having carried out a review of the level of risks that the Group is taking in pursuit of its strategy, the Board is satisfied that the level of retained risk is appropriate and commensurate with the financial rewards that should result from achievement of its strategy. \n Board of Directors \n As of the date of this Report the Board comprises five Directors in total: the Non-Executive Chairman, two Executive Directors (being the Chief Executive Officer (\"CEO\") and the Chief Financial Officer (\"CFO\")) and two Non-Executive Directors (each of whom are considered by the Board to be independent), reflecting a blend of different experiences and backgrounds. The skills and experience of the Board are set out in their biographical details on pages 10 and 11. The experience and knowledge of each of the Directors give them the ability to challenge strategy constructively and to scrutinize performance. \n The Board is responsible to the shareholders for the proper management of the Group. The Board and the Group's management team are responsible for reviewing and evaluating risk and the Executive Directors meet at least monthly to review ongoing trading performance, discuss budgets and forecasts and new risks associated with ongoing trading. The Board typically meets monthly to set the overall direction and strategy of the Group, review operational and financial performance and advise on management appointments (if necessary). All key operational and investment decisions are subject to Board approval. The Company Secretary is responsible for ensuring that Board procedures are followed and applicable rules and regulations are complied with. The number of meetings attended by each Director can be found on page 31. \n There is a clear separation of the roles of CEO and Chairman. The Chairman is responsible for overseeing the running of the Board, ensuring that no individual or group dominates the Board's decision making and ensuring the Non-Executive Directors are properly briefed on matters. The CEO has the responsibility for implementing the strategy of the Board and managing the day-to-day business activities of the Group. \n Time commitment \n On joining the Board, Non-Executive Directors receive a formal appointment letter, which identifies the terms and conditions of their appointment and, in particular, the time commitment expected of them. A potential Director candidate (whether an Executive Director or Non-Executive Director) is required to disclo...

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