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2018 agmfinal

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2018 Iofina AGM Presentation

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2018 agmfinal

  1. 1. Technology Leaders in Iodine®Technology Leaders in Iodine® AGM Presentation June 2018 Iofina plc
  2. 2. Technology Leaders in Iodine®Technology Leaders in Iodine® Disclaimer IMPORTANT NOTICE This document, including the accompanying narrative (if applicable) (the “Presentation”) is confidential and is solely for the use of the intended recipient. Neither the whole nor any part of the information in this Presentation may be disclosed to, or used or relied upon by, any other person or used for any other purpose and, in particular, should not be distributed outside the United Kingdom, without the prior written consent of Iofina plc (“Iofina”). This Presentation is the property of Iofina and the recipient agrees that it will, on request, promptly return this Presentation and all other information supplied in connection with the ideas and concepts presented herein to Iofina. This Presentation is designed to provide information about Iofina and its business and operations. It is intended as general information only and is not to be relied upon for any particular purpose. In particular, no information contained in this Presentation constitutes, or shall be deemed to constitute, an invitation to invest or otherwise deal in any securities of Iofina. Although we endeavour to ensure that the content of this Presentation is accurate and up-to-date, Iofina gives no representation or warranty as to the accuracy or completeness of any information contained in this Presentation. Accordingly, no liability is accepted by such persons and they will not be liable for any direct, indirect or consequential loss (including without limitation loss of profit) or damage suffered by any person resulting from the use of the information contained in this Presentation, or for any opinions expressed by any such person, or any errors, omissions or misstatements made by any of them. Nothing in this notice excludes any remedy in respect of fraud or fraudulent misrepresentation. This Presentation does not purport to be comprehensive or contain all the information the recipient may need and Iofina does not accept any liability or responsibility for the accuracy or completeness of, nor makes any representation or warranty, express or implied, with respect to, the information on which this Presentation is based or that this information remains unchanged after the issue of this Presentation. This Presentation contains forward-looking statements, beliefs and opinions which involve risks and uncertainties and actual results and developments may differ materially from those expressed or implied by these statements, beliefs or opinions depending on a variety of factors and accordingly there can be no assurance that the projections or developments will be achieved and no representation or warranty is given as to the reasonableness or achievability, and no reliance should be placed on any projections, estimations or forecasts or the statements, beliefs and opinions expressed herein. In addition, this Presentation contains historical information and it should be noted that past performance cannot be relied on as a guide for future performance. No duty of care or otherwise is owed by Iofina or any of its connected persons to any other person in relation to this Presentation. This notice is to be interpreted and construed in accordance with English law and any claims or disputes arising out of, or in connection with, this notice shall be subject to the exclusive jurisdiction of the English courts. By accepting this presentation you agree to be bound by the foregoing restrictions. 2
  3. 3. Section 1 Overview
  4. 4. Technology Leaders in Iodine®Technology Leaders in Iodine® Board of Directors Experienced and Diverse with Expertise in: Business/Finance, Global Iodine Market, Water, Chemistry, Oil & Gas, Geology, and Industrial Operations Lance Baller, Non-Executive Chairman and Co-Founder  Former CEO and President of Iofina plc 2010 to May 2013, former Finance Director 2007-2010 and Secretary from 2007 to 2013  Former Managing Partner of Shortline Equity Partners, Inc.; a former Vice President of the investment banking firms UBS AG and Morgan Stanley  Significant investment, audit, and corporate governance experience Tom Becker, PhD, President and CEO of Iofina plc  Named CEO and President of Iofina plc September 2014, Named President/CEO Iofina Chemical March 2010  Former VP of Research and Development for H&S Chemical (acquired by Iofina and now Iofina Chemical)  Extensive experience in scale-up of chemical processes from laboratory to pilot to full scale production, global iodine expertise Malcolm Lewin, CFO of Iofina plc  Former Finance Director of AIM listed companies Oxford Metrics plc and Real Estate Investors plc  Over 30 years experience in finance and accounting for both public and private companies.  MA in Classics from Oxford University and qualified as a chartered accountant with Coopers & Lybrand William Bellamy, PhD, Non-Executive Director  Former Senior VP of the Water Business Group at CH2M Hill Inc.  Current Professor of Practice at the Univ. of Wyoming, PhD in Civil Engineering from Colorado State University 4 Directors
  5. 5. Technology Leaders in Iodine®Technology Leaders in Iodine® Management Team Experienced and Diverse with Expertise in: Business/Finance, Global Iodine Market, Water, Chemistry, Oil & Gas, Geology, and Industrial Operations Forest Dorn, COO Iofina Resources  Former Member/Manager of Avanti Exploration, LLC.; former Board member and Senior Vice President of Forest Oil Corporation  Over 30 years of broad oil and gas experience Kurt Jones, COO Iofina Chemical  20 years experience at Iofina/H&S Chemical  Varied past experience including Operations Manager and VP Technical Sales and Business Development  Global iodine derivatives expert and chemist Scott Formolo, Vice President Operations and Geologist Iofina Resources  Graduate from Colorado School of Mines  Experience in iodine exploration, process design, geology, iodine operations, and hydrology 5 Key Management
  6. 6. Technology Leaders in Iodine®Technology Leaders in Iodine® 6 Overview USA Iodine Producer and Specialty Halogen Compound Manufacturer • Growing iodine producer with USA operations • Developed unique, proven technology to isolate iodine from brine water otherwise wasted • Extensive, proprietary geological model to execute expansion • New iodine plant IO#7 online February 2018 • Iofina Chemical produces iodine products with various growing applications • Direct iodine sales • Diversified with production of specialty fluoro- and chloro- derivatives
  7. 7. Technology Leaders in Iodine®Technology Leaders in Iodine®  EBITDA positive with improvement of US$2.7m YOY despite similar average iodine prices in 2016 and 2017  Spent the last 3+ years improving efficiencies at current plants during an unprecedented global iodine price drop  Iodine Market  Global demand continues to rise  Prices recovering, expected to continue to rise, still well below historical levels  Production increasing despite fewer plants in operation  Currently four plants operating  IO#5 offline  Change in philosophy with new emphasis on expansion  IO#7 Expansion  Completed in five months  On budget  Online February 2018  Lowers overall iodine production costs  Iofina Resources, a lower quartile unit cost iodine producer  Plans underway for further growth (possibly utilizing IO#5 resources)  Vertically integrated through Iofina Chemical which continues to expand halogen based product offerings globally 7 2017 Snapshot Expanding Iodine Production, EBITDA Positive
  8. 8. Section 2 Iodine Market
  9. 9. Technology Leaders in Iodine®Technology Leaders in Iodine® $0 $10 $20 $30 $40 $50 $60 $70 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 1960 1962 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 World Production and Average Price (1960-2017, + Trendline) World Iodine Consumption (MT) Price($)/kg Iodine Prices Increasing 9 •Some Chilean mines have significantly reduced output or closed as iodine prices fell to 10 year lows in late 2016/early 2017 •Japanese output remains steady Supply •Market ~35000MT Iodine Consumption •Steady growth 3-4% per year expected to continue •Human Health applications are the largest growing segment Demand •2016 End of Year Pricing ~$18-20 USD/kg for large, multi-ton purchases •2017 saw a significant rise in iodine prices to $24 by year end and 2018 prices have continued to rise •2011 prices before Japanese Tsunami were greater than $30 USD/kg Iodine Price
  10. 10. Section 3 Business Groups: • Iofina Resources • Iofina Chemical
  11. 11. Technology Leaders in Iodine®Technology Leaders in Iodine® 11 Structure Vertically Integrated Iodine and Specialty Halogen Compound Producer Iodine • Iodine Manufacturer • Specialty Halogen Compound Producer • Global sales
  12. 12. Technology Leaders in Iodine®Technology Leaders in Iodine® Iofina Resources Iodine Production from Produced Brine Water • Proprietary geological model to identify economically viable iodide reserves in the USA • Established partnerships with third party oil/gas producers for access to brine resource • Locate iodine production plants near brine water sources and return to the third party producer • Unique, proven IOsorb® technology used to isolate iodine from these streams at low cost 12 Patented and Patent Pending Iodine Technology Water supplied through 3rd party contracts Third Party Oil and Gas Production • Low cost producer • Low cost scalable plants • Current plants up to 30k bpd • Per-unit CapEx for new sites lower than other iodine producers • Sell crystalline IOflo® iodine as a chemical derivate or as raw iodine through Iofina Chemical
  13. 13. Technology Leaders in Iodine®Technology Leaders in Iodine® Iofina Resources 2nd Largest North American Iodine Manufacturer, Dynamic, Growing • Produced 503 MT of IOflo® crystalline iodine in 2017, a 6% YOY increase • Unlike other iodine producers, Iofina’s expansion plans will reduce overall production costs • Strategic decision to relocate IO#3, and construct IO#7 at a location with a better raw material source • IO#7 online in February 2018, on-time and on-budget, will significantly increase overall production • In 2017, efficiencies increased and brine flow normalized following OCC injection curtailments • Minimized brine curtailments by changing brine input/output systems at plants where economically viable • Exploring options for IO#5 with potential repurposing of this asset to another location or using an alternative brine supply • Additional sites are available and in planning 13 0 100 200 300 400 500 600 2013 2014 2015 2016 2017 MT Crystalline IOflo® Iodine Produced • Proprietary geological modeling improvements • Ongoing focus on cost and chemical usage reductions • HS&E improvements continue, safety and continual improvement are a staple of Iofina’s culture • Potential of expanding business to include operating disposal wells
  14. 14. Technology Leaders in Iodine®Technology Leaders in Iodine® Expansion Prospects Oklahoma Anadarko Basin Active and Growing 14 0 50 100 150 2/20/2016 10/27/2016 7/4/2017 3/11/2018 RigCount Time (Weekly) Rig Count - Oklahoma Iofina’s current area of operations Baker Hughes Rig Count: http://phx.corporate- ir.net/phoenix.zhtml?c=79687&p=irol-reportsother EIA – Drilling Productivity Report: https://www.eia.gov/petroleum/drilling/#tabs-summary-3 https://irma.nps.gov/DataStore/DownloadFile/527524 Sources:
  15. 15. Technology Leaders in Iodine®Technology Leaders in Iodine® Oklahoma Active PW Count O&G Growth *IHS Petra Data 262000 264000 266000 268000 270000 272000 274000 276000 278000 280000 282000 2011 2012 2013 2014 2015 2016 2017 2018 2019 NumberofActiveProductionWells Time (Year) Oklahoma: Active Production Wells All Wells Oklahoma PW Wells Well Type Active Wells Total Pre-2012 2012 2013 2014 2015 2016 2017 2018 All Wells 280,463 264,345 267,633 271,095 274,801 277,039 278,366 280,034 280,463 Gas 74,211 70,618 71,511 72,223 72,917 73,430 73,754 74,117 74,211 Oil 202,219 189,812 192,160 194,876 197,866 199,582 200,582 201,885 202,219 O&G 1,139 1,104 1,114 1,119 1,129 1,135 1,136 1,138 1,139 Other 2,894 2,811 2,848 2,877 2,889 2,892 2,894 2,894 2,894 Permit 940 15
  16. 16. Technology Leaders in Iodine®Technology Leaders in Iodine® Growth of Available Resources in Oklahoma  Brine Water Injected per month statewide: +175 million bbls with 23.5 million bbls in Iofina’s Area of Interest (December 2016)*  Total active wells 280K+ (January 2018)**  Total uncompleted wells 960 (Anadarko Basin, April 2018)***  New Drilling (+140 active rigs, June 2018)**** Production Growth and New Plants through Expertise/Relationships  Iofina Resources Geological and Management Team is continually analyzing new opportunities for future iodine plants.  Unique, proprietary geological model  Multiple high graded potential sites for IOsorb® plants  Some with new partners, others with existing partners  Some in our current Area of Interest, others in new regions  Long term control of SWD and brine supply Expectations  Continue to expand; developing new IOsorb® plants  Timing and rate dependent on numerous items including:  Volumes/ppm  Agreements for a new site  Debt/capital  Iodine prices  Expect IO#8 development in 2018 16 Opportunities for Iodine Production Abundant Resources, Cultivated Relationships, Unique Geological Model ***EIA – Drilling Productivity Report: https://www.eia.gov/petroleum/drilling/#tabs-summary-3 *Oklahoma OCC: http://www.occeweb.com/og/ogdatafiles2.htm **IHS Petra Data ****Baker Hughes Rig Count: http://phx.corporate- ir.net/phoenix.zhtml?c=79687&p=irol-reportsother
  17. 17. Technology Leaders in Iodine®Technology Leaders in Iodine® Iofina Chemical Technology Driven, Integrated with Iofina Resources Iodine 17 • Producer of halogen based products; a value add to Iofina produced iodine • In 2017, invested in new product development as well as improving current process capacities, efficiencies and safety • 35 years of operations and excellence have earned a reputation as a world leader in specialty halogenated compounds with a focus on iodine • The key raw material, iodine, backward integrated through Iofina Resources, gives customers stability of supply • Participating in multiple iodine technologies including reducing mercury emissions from coal based power plants • Committed to investment in R&D  Increased staff, committed to finding the best people  Expanding laboratory  Improving instrumentation and analytical capabilities • Diversification through various applications as well as producing non iodine products • 2017 record year for fluorinated products
  18. 18. Technology Leaders in Iodine®Technology Leaders in Iodine®  Patented Process  Water used as the solvent to produce  Utilizes 4 x 8000liter reactors  Custom fluid-bed dryers  98%+ Powder  Formulations  Applications  Fungicide/Preservative • Paints • Coatings • Metalworking Fluids • Personal Care Products • Cosmetics • Others 18 Product Focus 3-Iodo-2-propynyl butylcarbamate (IPBC)
  19. 19. Technology Leaders in Iodine®Technology Leaders in Iodine® Iofina Chemical Numerous Products, Diverse Applications • All sales for the Group are through Iofina Chemical • Examples of Products • Crystalline IOflo® Iodine • IPBC • Methyl Iodide • Ethyl Iodide • Hydriodic Acid • Methylene Iodide • Iodophor Blends • ChloroGlass Sanitizer • Methyl Fluoride • Applications • Pharmaceuticals • Industrial Catalysis • Semiconductor Etchant Gases • Food/Beverage Industry Sanitizer • Animal Care • Mineral Separation • Continues to invest in increasing capacities of existing products and development of new products 19
  20. 20. Section 4 Results/Summary
  21. 21. Technology Leaders in Iodine®Technology Leaders in Iodine® • Iodine prices recovering from lows of below $20/kg at the end of 2016 to $24/kg at the end of 2017. Overall the average iodine price for 2017 was comparable to 2016 • Despite low iodine prices, the Group was EBITDA positive in 2017. With iodine prices rising the Group is poised to benefit • Four IOsorb® iodine production plants in NW Oklahoma operating for the majority of the year • Year-on-year increase from 474.1MT in 2016 to 503.0MT in 2017 despite operating with one less IOsorb® plant for three quarters of 2017 • Strategic decision to repurpose IO#3 to construct IO#7 in an area with a significantly better raw material source. IO#7 online as of February 2018 • Continued to reduce iodine production costs by improving operations, including working with our partners to increase brine availabilities at some plants • Iofina Chemical created new specialty products in the period and invested in increasing output of current products. 2017 Review 21 Iofina IOflo® Iodine IOsorb® Iodine plant IO#6
  22. 22. Technology Leaders in Iodine®Technology Leaders in Iodine® Financial Summary FY 2017, Improving Fundamentals Summary year on year  Revenue decreased by 7% from $22.5m to $20.8m (2017 inventories to normalised levels after reducing at the end of 2016)  Gross profit increased by $2.2m from $2.7m (12% of sales) to $4.9m (23% of sales)  EBITDA improved by $2.7m from $1.3m deficit to $1.4m surplus  Operating loss reduced from $3.3m to $0.7m  Impairment expenses of $5.3m have been recognised in respect of the Montana Atlantis Field project and the repurposing of IO#3 plant equipment to the new IO#7 plant  A revaluation charge of $1.1m has been recognised in respect of share conversion rights relating to convertible notes (2016 revaluation credit of $2.1m)  Loss before tax increased from $3.8m to $9.8m  Cash balances increased from $2.8m to $3.4m  Capital investment was $2.1m (2016: $0.8m)  $3m of the term loan facility was drawn down, primarily to finance the construction of IO7 plant 22 Year ended Year ended 12/31/2017 12/31/2016 Total revenue $20.8m $22.5m Metric tonnes of crystallised iodine produced 503 474 Gross Profit $4.9m $2.7m EBITDA $1.4m -$1.3m Capital Investment $2.1m $0.80m
  23. 23. Technology Leaders in Iodine®Technology Leaders in Iodine® • US$20m of convertible debt with Stena Investments ($15m) and Panacea Limited ($5m) • Interest rate 5% and currently rolled over • Conversion prices ⅓ @18p; ⅓ @25p; ⅓ @32p • US$10m Debt Facility through Stena • 6% interest on any funds drawn on Debt Facility • US$3m of the Facility used to achieve business objectives including IO#7 • Interest currently is being rolled over • Maturity date June 2019 • Total debt at the end of 2017 was approximately $24.4m • All debt is secured • Management and Directors are working on solutions to reduce this debt with proper funding available for expansion projects and are confident of a successful outcome 23Debt
  24. 24. Technology Leaders in Iodine®Technology Leaders in Iodine® Iofina: Investment Opportunity 24 Unique Technology • Unique business with proven IOsorb® technology to isolate iodine from produced brine waters from oil/gas. • Upstream, established halogen chemical producer with strong sales channels • Improved efficiencies of iodine production • Proprietary geological knowledge to identify and utilize new brine sources Commodity in Demand • Iodine prices have increased ~20% in 2017 and have continued to rise in 2018 • Pricing for iodine is still well below historical values, with room to increase • Iodine is a versatile substance with various applications • Iodine market continues to grow • USA production from a produced ‘waste stream’ where the USA is a net importer of iodine
  25. 25. Technology Leaders in Iodine®Technology Leaders in Iodine® Iofina: Investment Opportunity 25 Growth • Prudent growth strategy in place to execute future IOsorb® plants • IO#7 executed on-time, on-budget • More flexible growth than competition • Per iodine unit CapEx costs for growth are lower than competition • Expect to develop IO#8 in 2018 • More IOsorb® plants in the pipeline • Well balanced management team executing expansion with lessons learned from the past Bottom Line Advancing • EBITDA positive and improving • Iodine prices moving higher, and as a basic iodine manufacturer, will directly add to profits • Low iodine production costs at future plants are also additive to profitability Increased Profits + + = Lower Cost Production Iodine Prices + More Plants Value Added Iodine Products
  26. 26. Technology Leaders in Iodine®Technology Leaders in Iodine® 26 Iofina Chemical 1025 Mary Laidley Drive Covington, KY USA 41017 +1-859 356 8000 Iofina Resources 8480 East Orchard Road, Suite 4900 Greenwood Village, CO USA 80111 +1 303 222 1215 information@iofina.com www.iofina.com Iofina plc 200 Strand London WC2R 1DJ c/o Kerman & Co. Attn.: Simon Holden +44 (0) 20 3006 3135
  27. 27. Section 5 Appendix
  28. 28. Technology Leaders in Iodine®Technology Leaders in Iodine® 28Share Price Information Exchange Ticker Share Price 52 Week H/L Market Cap Shares in Issue Nomad/Broker AIM IOF 17.40p 9.80p/ 25.50p £ 22.20M 127,569,398 finnCap Share price from April 20 2017 to April 19 2018 Stock data as of 1 June2018 Source: London Stock Exchange  Proven technology  Growth  Improving Market Conditions
  29. 29. Technology Leaders in Iodine®Technology Leaders in Iodine® Iofina – Core Operations 29 Iofina Resources HQ, Greenwood Village Colorado Iofina Chemical, Covington KY Iofina Resources IOsorb® plants, NW Oklahoma Iofina plc registered office
  30. 30. Technology Leaders in Iodine®Technology Leaders in Iodine® 2017 Manufacturing Facilities 30 Iofina Chemical - Kentucky IO#2 - Oklahoma IO#7 – Oklahoma IO#4 – Oklahoma IO#5 – Oklahoma IO#6 – Oklahoma
  31. 31. Technology Leaders in Iodine®Technology Leaders in Iodine® Iodine market USA Iodine Manufacturer, USA net importer of iodine Chile – 55-60% of global production from caliche ore  SQM (NYSE listed) accounts for ~35% of global sales Japan – 18% of global production, five producers from gas brine water  Production expansion within the country is very limited (land subsidence issues)  Large amount of recycling plus new production totals ~30% United States – 6%, Iofina and 2 Japanese owned producers who drill brine wells; significant non- Iofina USA iodine is exported to Europe or Japan  Iochem (Toyota Tsusho)  Woodward Iodine Company (ISE Chemicals) Others – Turkmenistan, Azerbaijan, Iran, Indonesia Iofina Advantage  Vertically integrated organization which produces iodine derivatives  USA produces ~6% of world’s iodine but consumes over 15%  Low CAPEX for IOsorb® plants  Using existing waste brine from oil and gas production, no brine or gas wells to drill unlike other US manufacturers  Proven technology at multiple IOsorb® iodine production plants  Chilean process is a heavy mining process with significant costs to open a new mine  Ability to be dynamic and adjust to changing environments  Global sales 31 Global Iodine Production Areas USA 6% Chile 57% Japan 18% Recycling 17% Others 2%
  32. 32. Technology Leaders in Iodine®Technology Leaders in Iodine® The Iodine Industry Iodine – Essential for life and industry • Global demand at or near 35000 MT in 2017 • Global demand:  Annual Growth Rate 2002-2017: ~4% • Various diverse markets served which allows for long term stability and growth potential  Robust X-ray contrast media growth from emerging countries in addition to an ageing global population  New applications for environmental remediation and industrial applications  Established industrial, pharmaceuticals, and biocide markets  Continued growth in demand for LCD screens  Primary uses are related to human health and nutrition • Iofina is a member of the World Iodine Association (WIA) which explores new uses of iodine as well as promotes iodine as substance with unique synthetic properties and human/animal health benefits Worldwide Demand by Sector 32 *source Iofina plc X-ray contrast media 24% Biocides and Antiseptics 15% Industrial Applications and Catalysts 13% Optical polarising film 13% Pharmaceuticals 12% Fluorine derivatives 7% Animal nutrition 7% Heat stabiliser (Nylon) 4% Others 5%
  33. 33. Technology Leaders in Iodine®Technology Leaders in Iodine® Wellhead Extraction Technology (WET®) WET® with IOsorb®  Handles oil and other impurities without pre-filtration  Produces elemental iodine in the field  50-300mt per plant per annum depending on iodine content, temperature and brine flow  Works on both cold or hot brine streams  Smaller mobile units for up to 10000 bpd designed WET® Chemical-based (Cold Brine Streams)  Chemical-based method using an anion exchange resin, to which the iodine anions are attracted  Method can also be based on a “physical system” for separating out iodine molecules in a physical trap using carbon  Pre-filtration required to handle oil and other impurities  Only works on cold brine streams  Iodine extraction yields of up to 70% 33 WET®  Previous iodine extraction technologies rely on the incoming brine stream’s pH being carefully controlled, use hazardous chemicals, and require high CAPEX  Brine stream iodine extraction using standard chemicals  Extraction agnostic  WET® plants capable of handling up to 30,000 bpd  Custom designed plant can be built or multiple modular WET® plants can be used together for larger sites  New designs for hyper iodine sites and higher volume sites over 30,000 bpd  Accelerated return on capital investment  Patent for iodine extraction based at the injection site that contains oil and other impurities associated with oil and gas production
  34. 34. Technology Leaders in Iodine®Technology Leaders in Iodine® Corporate History Current structure  Incorporated in 2005 and registered in England and Wales under the Companies Act 1985 with registered number 5393357  127,569,398 shares issued, directors own 3.5%  100% wholly owned subsidiary Iofina, Inc.- Iofina Resources, Inc. and Iofina Chemical, Inc. are 100% wholly owned subsidiaries of Iofina, Inc. Listed on the London Stock Exchange’s AIM market Ticker IOF  IPO - May 9th 2008, Gross funds of £15.1m raised a placement at 55p  Secondary Offering - Feb 2009, £5m for iodine derivatives business at 55p  Secondary Offering - April 2011 of £2.84m raised through a placement of 10.52m shares at 27p, for business development and to drive expansion, the maximum allowable under the Company’s existing authorities  Secondary Offering - May 2012 secondary offering of £4.33m raised through an oversubscribed placing of 11.57m shares at 37.5p, accelerate rollout of WET® IOsorb® plants, the maximum allowable under the Company’s existing authorities  Convertible bond placement - May 2013 for $15m initially due May 2015, extended May 2014 to due May 2017. Conversion price of 100p and coupon of 6.0%  Convertible bond placement - May 2014 for $5m due May 2017. Conversion price of 40p and coupon of 6.0%  Both bonds reissued as secured debt – September 2016 $20m due 1 June 2019. Conversion prices of 18p, 25p and 32p and a coupon of 5%  Debt facility of $10m secured – September 2016 due 1 June 2019 at 6% on funds drawn Current Financial Strength  Owner of chemical plant and five IOsorb® plants  Strong portfolio of intellectual property 34
  35. 35. Technology Leaders in Iodine®Technology Leaders in Iodine® 35Contact us Media Relations Yellow Jersey 1st Floor, 30 Stamford Street London SE1 9LQ iofina@yellowjerseypr.com Iofina Chemical 1025 Mary Laidley Drive Covington, KY USA 41017 +1-859 356 8000 Iofina Resources 8480 East Orchard Road, Suite 4900 Greenwood Village, CO USA 80111 +1 303 222 1215 information@iofina.com www.iofina.com

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