18th Jan 2016 10:04
LONDON (Alliance News) - Iofina PLC said Monday that 2016 will be a year of "prudency and value protection" as it takes steps to protect its cash position and reported a rise in production for 2015.
The company said it had produced a total of 569.1 metric tonnes of crystalline iodine from its IOsorb plants in 2015, up from 327.7 metric tonnes in 2014, despite experiencing power outages at the plants in December due to adverse weather conditions.
Iofina estimates a loss of anticipated production of about 5 to 7 metric tonnes in December as a result of these outages.
The company expects to produce between 250 and 270 metric tonnes of crystallised iodine in the first half of 2015.
Iofina said it had successfully marketed and sold "significant" quantities of iodine into the global market place, and in line with other commodities the price for iodine has continued to soften.
Iodine is generally sold in dollars, the company said, and as a result the strengthening of the US dollar has further hit iodine pricing.
The company said it has taken steps to mitigate these hits, cutting expenses and reducing production and corporate costs, which it expects to protect its cash position and boost its gross margins for 2016 as it moves towards cashflow positive operations.
"While the board is encouraged by the sizeable year-on-year iodine production increase and overall operational gains, with the backdrop of an uncertain capital markets and commodity climate, 2016 will be a year of prudency and value protection. The company remains focused on seeking out ways to streamline efficiencies and mitigate risk, while expanding production at its current plants and future operations," said President and Chief Executive Officer Tom Becker in a statement.
Shares in Iofina were down 11% at 9.00 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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