Iodine producer Iofina is moving in the right direction, although output volumes remain below hoped-for levels. This has constrained the potential benefit for the company of the rise in iodine prices caused by the Fukushima nuclear disaster in Japan (iodine is believed to protect against the harmful effects of nuclear radiation).
At its central operations in Wyoming, Iofina is continuing trials of its pilot wellhead extraction technology, which aims to be deployable quickly, efficiently and flexibly to different locations and brine streams. Meanwhile, conclusion of a proposed water treatment arrangement will enable Iofina to create a new revenue stream and enter into a market that chief executive Lance Baller believes can be "highly lucrative".
The company also continues to collect large volumes of iodine-rich brine from numerous sites around North America, particularly in California, Texas, Saskatchewan, Louisiana and Oklahoma. Efforts are being focused on the Los Angeles Basin in California and Texas to exploit the extraction knowledge gained from existing operations. Discussions are ongoing with various Oklahoma operators with a view to securing further third-party iodine sources.
| IOFINA (IOF) | ||||
|---|---|---|---|---|
| ORD PRICE: | 20p | MARKET VALUE: | £23m | |
| TOUCH: | 19.75-20p | 12-MONTH HIGH: | 32p | LOW: 18p |
| DIVIDEND YIELD: | NIL | PE RATIO: | NA | |
| NET ASSET VALUE: | 15p* | NET CASH: | £5.54m | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 5.98 | -1.55 | -1.47 | nil |
| 2011 | 5.94 | -0.42 | -0.35 | nil |
| % change | -1 | - | - | - |
*Includes intangible assets of £6.1m, or 5p a share | ||||
