Iofina plc

Good afternoon, and welcome to the IFC and the PLC investor presentation. Throughout this recorded presentation, investors will be in this lonely mode. Questions are encouraged and can be submitted at any time via the Q&A tab situated on the right-hand corner of your screen. Simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll. I'm now allowed to hand over to Tom Becker, CEO. Good afternoon, sir.

Great, thank you. And welcome to this presentation from Iathena PLC. I look forward to sharing not only the accomplishments in 2025 of the group, but how Iathena views itself moving forward. We're very excited about the trajectory of the company. But before I start, I definitely want to say I want to thank all the IFINA employees for their hard work and dedication in 2025 without each and every one of our dedicated employees who wouldn't be where we are today. And I look forward to presenting the business plan that we have here moving forward to an investment group. It's part of the presentation. It's going to go through a number of parts today. We're going to go back quickly over the company overview and the global iodine market. I know most of the listeners today have a sense of who Iathena is, but for those who don't, we want to make sure we give a good enough background to all those potential people interested in Iathena. Then we'll go briefly over what happened in 2025, and Malcolm will get into some specifics of the financials of 2025. But we're really excited about what's next for IFENA, the step change and growth of our iodine production, the opportunities that we have, and what we believe is a strong investment case and outlook for the organization. So just to get started, a little bit about the company itself and the performance that we've had and the overall iodine market. So who is IFENA? We always consider ourselves a specialty chemical company. with expertise in iodine. And we have two business units, all which manufacturing takes place in the United States, Iofina Resources and Iofina Chemical. Iofina Resources is the arm of the business that has really a main focus that's well-defined. It is to explore for and produce iodine. And how do we do this? We use our unique technology where we take brine water that's co-produced from oil and gas operations, It's a waste product for these producers. And we partner with these either oil and gas companies or midstream partners that handle the wastewater. And we use our IonZorb technology to extract iodine and use that resource to produce iodine and then sell it into the open market. We've been doing this for a number of years. We have eight plants all in the state of Oklahoma. You can see from the chart here on the slide, there's two core areas. in the state of Oklahoma. One in northwest Oklahoma, where we have five operating plants, and three more plants in the central Oklahoma core area, where we've built our plants here recently. Very proud of the production from our Iathena Resource Group, produced a record number of metric tons of our crystalline iodine at 743, and we're well on pace to exceed those production values in 2026 and beyond. So what happens with that iodine that we produce at Iathena Resources? Well, as we're exploring for and producing more and more iodine as we move forward, there needs to be an outlet of how that iodine is vertically integrated into the market, whether that's through compounds that we make at Iathena Chemical that contain iodine or direct sales of that iodine into the global market. And that's what Iathena Chemical's purpose is, is to take that iodine that's produced by Iathena Resources and either sell that iodine to global customers, produce value-added derivatives based on historical and new applications that we've done in that organization. And we also have a small legacy business of non-iodine-based chemicals that feeds biocidal, odor control, and semiconductor industries. The iodine market itself is a pretty unique market. It's not a large market. It's a niche market of about 40,000 metric tons. Most of the world's iodine is produced from an ore in Chile, Sixty percent plus of the world's iodine is produced in this manner. Iathena and most of the rest of the people in iodine production produce their water from primes. But what makes Iathena unique is that we gather our brine from third-party oil and gas producers. So we are not drilling new wells. We are not disposing of the brine itself. And our technology allows us to take this water that's real-world water, dirtier, has an oil content to it, and push it through our process and economically make iodine. We keep expanding our iodine production with the eight plants that we have in mind, and currently we make up almost 2.5% of the world's global iodine production. As you can see in the chart here, The iodine market continues to expand. The yellow line in the chart shows the incremental growth year over year, save a bit of downturn during the COVID era. And we believe that the iodine market is going to continue to grow here moving forward. I'll get into the applications of where iodine is used and why we believe that the market is ripe for continued expansion of our iodine production. Pricing is also indicated in this particular slide. using the red line. And as you can see, there was a pretty significant jump in the price after COVID when markets reopened. And this price has been normalized over the last three years. While we can never say for certain where item prices are going to go, we can say for certain that last year we achieved a selling price on 100% basis of just over $74 a kilo. We are seeing those kind of prices here moving into 2026. And while we don't know exactly how things are going to move here in the future, the growth of the iodine market bodes well for iodine prices here moving forward. Again, what's causing this iodine market to expand? Well, here are the estimated amounts of iodine that is consumed in various industries and various applications. As you can see, X-ray contrast media, that is injectable iodine-based drugs to help pop images for certain x-ray and CT scans are the largest consumer of iodine in the world. It's been growing at a good pace over the last few years and anticipated to move at that pace moving forward. Estimates include up to potentially 1,000 metric tons of additional use per year over the next few years in this particular application, driving a lot of the iodine market growth. But Hydenmark is not solely used for x-ray contrast media. There's other human health care applications, including pharmaceutical applications, thyroid control used in diet for humans, but there's also a lot of other industrial type of applications, like for LCD screens and for heat stabilizers and automotives. I think You know, just to give you a sense, everybody's iPhone or whatever type of phone you have, it has a screen, an LCD screen. You're going to have a little bit of iodine in your phone or on your television set. The top right picture is probably somebody everybody's familiar with. It's an iodine-based antiseptic, either for use on cuts at home or even in the surgical application centers before surgery. So it gives you a little bit of an idea of where the iodine market is. And these areas continue to grow. likely 3% to 5% per year, 1,500 metric tons per year estimated growth from our view. And so that bodes well for not only increasing Athena's iodine production, but bodes well generally for the iodine market overall. So the next phase of the presentation that we want to be able to provide today is a little bit, a quick look back on 2025, which we're extremely proud of our success. And I'm not going to cover all the points on this slide because the next slide, Malcolm's going to talk a little bit about some of the numbers from 2025. But I get to be grateful of the record production, record EBITDA, and record revenues that the group has obtained last year. In fact, revenues have been increasing for the last eight years. And that's a result of execution of business plans, building out these IZOR plans year on year. and also the expansion of the iodine market and strong iodine pricing. What I can say is a few things I want to point out here is some of the last points on this slide. How were we able to achieve some of these? We built our IO number 11 plant, which came online in July of 2025 last year. We'll get into a little bit more details of that. That helped not only our record production, but then, therefore, the more iodine we produced, the more we have to sell and the more we can profit. And we are proud that we, in 2025, have started our next phase of iodine plant building, and that's in a new core area in the Permian Basin. And as you can imagine, we'll get into a little bit more detail of that a little bit later on in the presentation. And that plant is expected to be online in the third quarter of this year. So establishing three core areas of production, two in the state of Oklahoma, and now a third core area production in the Permian Basin. Very excited about where the opportunities are for IFENA here moving ahead. I'm going to throw it to Malcolm here briefly to discuss a little bit more details of the financials and key figures in 2025.

Okay. Thank you, Tom. So, as Tom's already said, the figures are records for us in terms of the key numbers and the production figures. First thing over on the right here is that we have the five year trend and it's pretty clear that the revenue has been moving upwards over the whole of that period and with our plans we expect it to move at an even greater rate going forward. EBITDA profit down below in the, whatever it is, yellow colour has had a bit of a bumpier ride but the trend is still strongly upwards where that's concerned as well. In terms of the numbers, As you can see, the revenue number hit 66.5 million, 22% up on the previous year, and that was a reflection primarily of production and also, if you look at the bottom line of pricing, because our pricing, our average realized 100% iodine price increased from $68.60 per kilo in financial year, $24 to $74.02 in 25, an 8% increase. So that also boosted revenue and gross profit. One point I'd like to make is that the production figure at the top of the first column for 25, that's 743 metric tons, reflects what was produced in the year. In fact, we actually sold 780 metric tons, and that additional tonnage is actually orders that we had at the end of financial year 24. but we weren't able to ship at the end of that year because shipping relied on boats sailing on time, and the boats didn't sail on time, and consequently that income has fallen into 25, and that makes a difference of about 2.5 million on revenue and about a million on profit, something to bear in mind when you think of these figures. Otherwise, I think there isn't a great deal else to say. At this point, we'll be coming back to some more detail in a few slides' time.