Iofina, specialists in the exploration and production of iodine and manufacturers of specialty chemical products, announces its audited final results for the 12 months to 31 December 2019 and Notice of its 2020 Annual General Meeting. Paper copies of these documents, together with a Form of Proxy, are being mailed to shareholders today, and will be made available on our website at www.iofina.com.
2019 saw the Group achieve its second consecutive year of record crystalline iodine production and record EBITDA. These milestones were hit all while reducing debt through the completion of a successful fundraise, which not only allowed the Company to focus on growing its core business of iodine production but also expand into the emerging CBD space. Construction began on IO#8 plant during the period, which was subsequently completed on time during Q1 2020 and on budget, incorporating many design improvements and improved process flow.
2019 Financial Highlights:
· Revenue increased by 22% from $24.0m to $29.2m
· Gross profit increased by $1.9m (31%) from $6.3m (26% of sales) to $8.2m (28% of sales)
· EBITDA improved by $1.8m (67%) from $2.6m to $4.4m
· Operating profit increased by $1.7m (164%) from $1.1m to $2.8m
· Finance expense decreased from $3.1m to $2.7m
· Profit before tax was $0.6m compared to a loss before tax of $1.1m
· An equity fundraise generated net proceeds of $8.3m
· Debt balances reduced from $25.6m to $18.2m through repayment and equity conversion
· There was an investment of $0.9m into a hemp seeds production company
· Cash balances increased by $4.2m from $4.5m to $8.7m
2019 Operational Highlights:
· Produced 602.7 MT of crystalline IOflo® iodine from Oklahoma based IOsorb® plants (2018: 588.8 MT)
· Established IofinaEX with the sole focus of research and production of cannabidiol (CBD) and other cannabinoids from hemp
· Iodine prices increased to ~$35-37/kg at start of 2020 from around ~$26-27/kg at the start of 2019
· Iofina Chemical had a strong trading year with the Group's IOflo® crystalline iodine and other specialty products
Post year end
· Iofina's newest IOsorb® plant, IO#8, began production in April 2020 on time and within budget. The plant is currently not operational as supply of brine water is restricted due to the current depressed oil price. The Company continues to work on alternative sources of brine.
· All other IOsorb® plants are receiving brine water and operating as normal
· 129.7MT of crystalline iodine produced in Q1 2020
· Iodine prices have remained stable into early Q2 of 2020
· Paycheck Protection Program ("PPP") loans of US$1.09m received in May 2020
Annual General Meeting 2020 ("AGM")
In light of the evolving COVID-19 circumstances, the AGM will provisionally be held at the offices of Keystone Law, 48 Chancery Lane, London WC2A 1JF at 11am on 30 June 2020. Due to restrictions in place, the fluid circumstances surrounding COVID-19, travel limitations and other safety factors, it will not be possible for shareholders to attend the meeting in person. The AGM will be run as a closed meeting with the minimum necessary quorum of two shareholders in accordance with the Articles of Association. Voting at the AGM will be carried out by way of a poll so that the votes cast in advance and the votes of all shareholders appointing the Chairman of the meeting as their proxy can be taken into account. Shareholders are urged to read the letter to shareholders accompanying the AGM notice for further details and to look out for any updates in connection with the AGM via RNS and on the Company's website.
Commenting, President and CEO Dr. Tom Becker, stated:
"I am extremely pleased with the progress made throughout 2019 and am delighted to report on another record-breaking year for the Company. Over the course of the period we have continued to execute our strategy to expand operations whilst being a low-cost iodine producer. This, combined with a rising iodine price, has led us to achieve record iodine production and EBITDA levels for the second year in a row.
"The progress made has left the Company in a stronger position than ever from which to resolve its current debt situation, and I'm pleased to report progress continues to be made in this regard and, although progress has inevitably slowed due to the COVID-19 situation, we remain confident that a debt solution will be realised ahead of the repayment date of the Company's current debt package on 1 July 2020.
"Throughout COVID-19, our efforts have remained focused on protecting the health, safety and wellbeing of our employees and their families, on continuing to operate effectively and efficiently, and on maintaining long-term value creation for shareholders. I'd like to take this opportunity to thank our hardworking employees whose efforts have allowed Iofina to remain operational.
"IO#8 was completed on time and within budget and is now currently idle. However, we anticipate that IO#8 will be back online in H2 2020."