25th Apr 2014 10:05
LONDON (Alliance News) - Iofina PLC Friday said its pretax loss widened in 2013 due to higher expenses but noted that production has seen a vast increase in its first quarter 2014 helping the company to exceed its revenue targets for the three months.
The iodine exploration and production company said its pretax loss widened in 2013 to USD3.8 million from USD1.2 million the previous year as a 31% increase in administrative expenses and a USD764,352 finance expense charge offset higher revenues.
The company said its revenues increased slightly to USD18.9 million from USD18.6 million as the company produced 171 metric tonnes and realised record sales levels despite a 25% decline in iodine prices during the year.
Iofina said it produced 47 metric tonnes of crystallised iodine, almost a three-fold increase on the same period the previous year which has meant its realised revenue has exceeded the company's target for the quarter.
During the quarter, the company completed its IO#4 and IO#5 iodine extraction plants and its IO#6 site is on target to be completed during the second quarter.
On Wednesday, Iofina 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.
The company said at the time that it has 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 for the coming months.
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.
Iofina said current indications suggest that the fracking programme will continue through to the end of 2014 at levels similar to those projected for the next three months.
While the fracking plans will hit current brine supply, the company reiterated on Friday that it remains confident for the longer term, suggesting that increased drilling is a positive indication of the operator's view to continue expansion, which should bode well for the longer term prospects of the company.
Iofina shares were up 22% to 34.17 pence, putting it in the top five AIM All-Share risers Friday.
By Tom McIvor; [email protected]; @TomMcIvor1
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Iofina