Iofina plc

Good afternoon and welcome to the ifina plc investor presentation.

Throughout this recorded meeting investors will be in listen only mode. Questions can be submitted at any time by the Q&A tab situated on the right hand corner of your screen. Just simply type in your question and press send. The company may not be in a position to answer every question received during the meeting itself. However, the company can review all questions submitted today and publish responses where appropriate to do so. Before we begin, I would submit the following poll. We do apologise for the slight delay in starting today. I'd now like to hand you over to Tom Becker, CEO. Good afternoon, sir.

Thank you very much. Hope everybody's doing well today. Happy to present an update on IAPENA, especially focusing on the first half year results, which came out earlier this week, and really an outlook for the future, which we're very excited about. Go through what we're going to be looking at from a presentation standpoint here, the general agenda. Just talk about the company in quick terms. I think most of the people that are listening to this call are familiar with Iodine, but there may be some that are not. So we'll give a quick overview of what Iodine is, what we do, and the market that we're mainly in, and that is the iodine market. So we'll give a little bit of history of the supply and demand and pricing of iodine, and also what kind of markets that iodine is going into and how those markets are growing. And then we'll get into... what we kind of did in the first half of this year, both from a business standpoint and a financial standpoint. And then we'll get into what I think is, you know, and those first half of the year numbers, I think we're very excited about and proud of what we were able to accomplish in the first half of the year. And then we'll get into what I think is even the more exciting aspect of it. And that's our, our pathway to 2000, our growth of our item production that we were planning to roll out. and uh you know why as a successful item company um with growing business why the investment case right you know in my opinion is has a real upside potential and where we think we're going to be moving here uh down the road so to jump right in and talk about the company a little bit itself and just talk about our operations we are a specialty chemical company with a expertise in halogen-based chemistry, so iodo-, chloro-, fluoro-based chemistries with a real focus on iodine and iodine production. And to do this, we developed technology over the course of the last 20 years in order to build the business that we have today. And all of our operations for Iapena are in the United States. So two divisions, Iapena Chemical and Iapena Resources. is the arm of the business that has basically two goals two functions and one is to explore for and develop potential for where we can produce iodine from brine water waste brine water in the united states and once those opportunities are identified The second portion is to build and produce iodine from these particular sites. So very focused operation. Where's the iodine? Where can we economically produce iodine? How can we use a resource that's already being produced from oil and gas in order to extract a valuable resource from a waste stream and then build and operate these plants on a very low cost basis? And all those kind of things are done in the core areas that are shown in the map here. So there's two core areas. in the state of oklahoma one of the northwest core area which we have five plants in operation currently one core area in the central oklahoma area where we have our latest three plants in operation and we're very excited about the new third core area in the permian basin which io12 is currently being built it should be up online here pushing water through the plants in the next few weeks to support the ivena resources division we do have an office in denver colorado to support those kind of activities the ivena chemical side is also a very a very major portion of functional unit of our organization it's located in covington kentucky just outside of cincinnati ohio and what i've seen a chemical does is it takes all the iodine that i've been a resources creates either takes that iodine and creates value-added derivatives that go into various applications, or is our total sales arm of the organization and sells that crystalline iodine that's produced at Iodina Resources throughout the world into various markets that need iodine. And to jump into those markets that need iodine, let's talk about the iodine market a little bit, how we view the iodine market, its current pricing and demand situation, and where iodine goes. So A little bit of a history of where iodine comes from, who manufactures it. About 60% of the world's iodine, maybe a little bit more than that, comes from Chile. They mine iodine from ores in the Atacama Desert. This is a pretty labor and rock-moving energy-intensive process to extract iodates from ores and then refine it in order to get iodine. There's four major manufacturers in Chile, SQM being the largest, which produces about a little over a third of the world's iodine. The rest of the world's iodine comes from brines, but what makes Iodina unique from the rest of the world is we are the only one that's using oilier produced brines from third parties. We go to where these brines are already coming up with oil and gas operations, and we are not drilling our own wells our own disposal wells for this brine we partner with oil and gas companies extract the iodine from them give it back the water and everybody benefits from the iodine that ifina manufactures and without it would never be realized the market itself continues to grow in 2026 we expect the iodine market to be at or around 40,000 metric tons of production on an annualized basis And this chart also gives you an idea of how pricing has been. And pricing over the last four years has been fairly stable, generally over $70 a kilo on a 100% basis of sale price of iodine. And we believe this firm pricing is a more normalized price that we're going to see here moving forward. never predict the future but right now for what we're seeing in the market from the demand from customers that we associated with the information that's in the market about supply we do believe that the supply and demand for either is fairly well and equilibrium but what this also means is that if you can see from the chart is that the item market continues to grow we'll talk about the applications in particular that are looking to grow but if this item market which has on average over the last number of years grows at about 3%. That means there's an additional 1,200 metric tons of capacity or thereabouts that needs to come into the market in order to meet demand. So I think this ambition to continue to accelerate our item production and just meet a fraction of that ongoing demand we believe is the right action in a growing market, which also wouldn't disrupt the supply and demand equilibrium. Just from a demand standpoint, demand in Asia is especially growing compared to the rest of the world. And in particular, some of these are the major applications that iodine goes into. The one I'll really focus on a little bit is X-ray contrast media, although you can see there's a number of different areas that iodine is used for around the world. X-ray contrast media, these are injectable drugs that go to help... create more of an image in ct scans especially it goes to focus on soft materials in your body so if it in certain application contrast media drugs are injected into the body that way these images pop and and these x-rays and ct scans can be much more easily interpreted by the doctors and the technicians And that's a very much growing application for a few different reasons. One is that the aging population around the world need seeing more of these x-rays and CT scans. The other major aspect is that global populations are getting more access to what I'll call Western medicine or modern medicine techniques. So especially in Asia, where some of these... medical techniques weren't available or haven't been available in the past are becoming more and more readily available to their populations but you know x-ray contrast is only a portion of that there's a number of other applications which do have some human health tie-ins including iodide compounds are used to manufacture certain pharmaceuticals everybody needs a little iodide in their in their diet in order to Control thyroid function, but there's also some other industrial and and other applications I think the chemical produces a biocide that goes into paints and coatings to prevent mold and mildew and in the can itself and on the wall We manufacture things that can catalyze acetic acid manufacturing animal health additives as a micronutrient in animal health applications to have cows and other farm animals grow bigger and fatter and provide more value to the farmer when sold. But there's other industrial applications as well such as heat stabilizers and certain automotive applications. So I guess the message is Iofina is an iodine manufacturer with a focus on some iodine derivatives and we believe we're in a nice growing market with expanding applications and just to jump into uh the first half of 2026 which we're very proud of the results that came out earlier this week you can see a number of bullet points here especially at the top which on the next slider are kind of reiterated and i'll allow Malcolm to review some of those but i just want to focus on the second half of our operations that we have done year to date in 2026. So, in the first half of the years and then between the end of June and currently. So, some big operational accomplishments that we've done is we announced in 2026 an agreement with a new brine supplier to add additional brine supply to our I-11 facility, and we'll talk about that here a little bit, what that really means, which is likely to increase production at that particular plant by about 50%. we've been building io12 throughout the first half of this year and into the third quarter this year as well and should be online here in the next few weeks and earlier this week we very excited to announce the next rollout of plants agreements for what we're going to be doing next after io12 and we'll talk about that here in a second but right now i think what i'll do is throw it to malcolm change it to the next slide if he can go through some of the key performance indicators that we had in the first half of 2026 and the, I think, pretty outstanding numbers that our business was able to achieve.