Iofina plc (LON:IOF) confirmed it remained on track to produce 250-270 metric tonnes of crystalline iodine in the first half of 2016 as it unveiled results for the last financial year.
The figures for the 12 months to December 31 revealed the company made an operating profit (EBITDA) of US$492,000 on revenue of US$20.3mln, while the pre-tax loss narrowed US$3.31mln.
House broker finnCap said the results were in line or slughtly better than its expectations.
Iofina, which had US$4.16mln in the bank as at the end of last year, was fighting the head-wind of low and depressed iodine prices, which effectively cancelled out the impact of a 73% increase in output to 569.1 metric tonnes.
That said, its profit margins were up year-on-year.
The company produces the chemical by processing the brine water generated by the onshore oil industry.
It has five IOsorb processing plants and its core area of focus is Oklahoma, where it is working with partners after a change to the rules governing salt water injection wells.
In an update on its financial position, Iofina told investors on Monday that it is in “positive” ongoing discussions with holders of US$20mln convertible loan notes due next year with a view to restructuring the debt.
"Despite the continued fall in iodine prices, Iofina has done well in executing its strategic plans and improving year-on-year margins,” said chief executive Tom Becker.
“Sensibly, the board took the view in 2015 to focus on current operations, and cost reductions with a view to protecting our cash balances during a period of declining iodine prices.
“We continue to explore and determine suitable locations for expansion and the board will execute our prudent expansion plans as market conditions allow.”
Echoing this, finnCap said "the fly in the oinment" is the weak iodine price, but said this was already factored into its forecasts, and it would be making no changes to its projections following the release of the results for 2015.
"On a positive note, the company has revealed it has had encouraging discussions in relation to the convertible bond due to mature in May 2017 and management is confident of a positive outcome," the broker noted.
Shares in Iofina were among the top performers on Monday morning, trading 24% higher.
---adds broker comment and share price---