Iofina PLC (AIM:IOF, OTC:IOFNF), the iodine exploration and production company, reported an increase in underlying earnings (EBITDA) and remains on track to meet full-year expectations.
EBITDA increased 6% to US$3.7mln in six months to 30 June 2022, although revenue was down 4% to US$19.2mln, with the group putting this down to an exceptional performance last year where it was able to sell excess inventory built up during the Covid-19 pandemic.
For the rest of the year and beyond, Iofina said it remains committed to organically increasing iodine production and remains on track to deliver second-half targets of 255-275 metric tonnes (MT) of crystalline iodine.
"Looking to the second half, on current output, we are confident of producing 255-275MT of crystalline iodine, with brine supplies now stabilised following the saltwater disposal maintenance work undertaken by one of our oil and gas partners,” said president and chief executive Dr Tom Becker.
“Market demand for raw iodine and our speciality products remains strong despite wider macroeconomic concerns. As such, the board anticipates meeting full-year expectations.”
Additionally, it expects to have a new production plant operating in the second quarter of next year which will make a “significant contribution” to the second half of 2023.
Iofina said it increased its cash position to US$4.7mln from US$1.7mln, while cutting its debt position to US$2.8mln from US$7.2mln.
Profit before tax fell to US$2.6mln from US$3.5mln, with last year’s figure including a one-off US government payment protection program loan of US$1.1mln.