28th Apr 2014 07:54
LONDON (Alliance News) - Iofina PLC Monday said Chief Executive George Lantz and Chief Finance Officer Gary Gatchell have resigned from their posts with immediate effect following an organisational review.
The iodine exploration and production company said Jeffrey Ploen, co-founder and non-executive director, has been appointed interim chief executive officer and president.
In addition, Mike Coddington, chief finance director of Iofina's subsidiary Iofina Chemical and the former finance director of the company between 2010 and 2013, has been appointed as finance director.
Iofina said Lantz and Gatchell have both offered to act as consultants if needed to allow for a smooth transition, "as per their mutual resignations".
"The company has clarity on what lies ahead and I am encouraged by the board's efforts in forming a plan to sort out these short term operational challenges." Non-Executive Chairman Lance Baller said in a statement.
"The company must learn from its past experiences and going forward will focus on the variables that it can control. With the announced changes concluded, the company will focus on maximising efficiencies at all operating plants as it focuses on bottom line performance," he added.
Last week, the company's shares halved after it said it reduced its production forecasts for the year to "materially below current market expectations" due to its principal operator's planned fracking schedule for the next three months.
Iofina reduced its production expectations for the current year to around 400 metric tonnes of crystallised iodine after gaining insight into its principle operator's planned fracking schedule. The schedule is expected to significantly reduce the brine supply and as a consequence, plant runtime for Iofina's IOsorb production plants, IO#3, IO#4, IO#5 and IO#6 will be affected.
The firm later in the week reported a pretax loss of USD3.8 million for 2013 compared with a USD1.2 million loss the previous year after a 31% increase in administrative costs and a USD764,352 finance expense charge offset higher revenues
The stock was trading at 42.67 pence Monday morning, up 2.67 pence or 6.7%. In the past 52 weeks, Iofina has traded as high as 251.75p.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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