Iofina cuts losses and makes progress on debt talks

Iofina impressed investors with confirmation of record iodine production, annual losses cut more than expected and encouraging sounds from its bond talks.

The company was positive at the earnings before interest, tax, depreciation and amortisation (EBITDA) level for the first time since opening its current IOsorb plants, and produced a record 569.1 metric tonnes (MT) of crystalline iodine, to become the second largest iodine producer in North America.

While full year revenues of $20.3m were down 21% losses were trimmed to $3.31m or $0.023 per share from $6.71m or $0.052 a year before.

Continued cost reductions helped gross profits improved by two thirds to $4.34m and leave cash and equivalents at year end stood at $4.16m

Iofina added that "positive ongoing discussions" were being held with the holders of its $19.1m convertible loan notes holders "with a view to restructuring the group's convertible debt position".

The notes are currently due to mature on 15 May 2017, with the discussions "working towards concluding arrangements that will at a minimum continue the level of funding provided by these notes", giving directors confidence that they do not need to raise additional funds in the near future.

House broker FinnCap said results were "in line or slightly better than our expectations".

"The fly in the ointment is the iodine price, which remains weak, but this is already in our forecasts."

Iofina shares were up 33% to 18.33p just before 1300 BST on Monday.