Iofina PLC (AIM:IOF, OTC:IOFNF) said it has cut debt to below US$1mln and its newest iodine extraction plant is on track to be up and running by the end of the quarter as it reported strong profit growth and cash flow for the past year.
The iodine and speciality chemical producer posted results showing underlying earnings (EBITDA) up 65% to US$11.5mln in the calendar year, well ahead of guidance it gave two months ago.
Statutory profit before tax rose 96% to US$10mln on revenue that increased 8% to US$42mln.
Cash stood at US$5.9mln at the end of December, with US$5.6mln generated during the year. Of this, US$1.4mln was used to reduce debt and US$3.1mln was invested into chemical and iodine plants. Net debt was reduced to US$0.9mln from US$3mln.
Global iodine prices remain steady at roughly US$70/kg and the company expects prices to stay at these levels into the second half of 2023.
“Being a low-cost producer of iodine means we have continued to capitalise on sustained, higher iodine market prices,” said chief executive Tom Becker, adding that demand for products through Iofina Chemical remains “robust”.
With the first quarter of 2023 producing 107.1mln tonnes (MT) of crystalline iodine from the company’s five IOsorb plants, Becker said the company is on track to meet its first-half production targets.
The newest, IO#9, is scheduled to be operational before the end of June and is expected to add 100MT-150MT of crystalline iodine per annum.
Our IO#9 plant is coming along nicely and is on track to start up later in Q2 this year. Check out some photos documenting its recent development.#iofina #io9 #update #iodine pic.twitter.com/TpmosJSbHW
— Iofina PLC (AIM:IOF, OTC:IOFNF) (@iofinaplc) April 3, 2023
Becker said negotiations are “progressing well with several interested parties” for IO#10, with potential sites identified and further testing underway.
Other potential growth projects are also being examined, he said, to complement the business’s existing products and expertise, and provide potential cross-selling opportunities.