(Alliance News) - Iofina PLC on Friday posted a rise in third quarter iodine production but said that production for the second half of 2020 will be at the lower end of estimates due to a brief pause in activity at one of the iodine plants.
Shares in Iofina were down 11% at 13.45 pence each in London.
In the third quarter of 2020, Iofina produced 170.8 metric tonnes of crystalline iodine from its five operating IOsorb plants in the US state of Oklahoma, up 2.1% from 167.3 metric tonnes a year ago. In the first nine months of 2020, the company produced 455 metric tonnes of crystalline iodine.
Iofina said it remains on track to achieve the lower end of its 340,000 to 360,000 metric tonnes forecast for second half of 2020.
"IO No 4 experienced a brief pause in activity during Q3 as our partner performed some required maintenance work at their disposal well. In conjunction with this work, Iofina executed planned improvements to the engineering of its water take-up system at the same site, with a view to increasing the amount of brine available," the company explained.
On prices, Iofina said iodine prices and demand have softened recently but are still above year-on-year, and the company remains well placed to deliver good margins on its sales.
President & Chief Executive Officer Tom Becker said: "Iofina is currently in the strongest position it has ever been, both operationally and financially. We are on track for record iodine production in 2020, iodine prices are still strong, and our debt has been refinanced and significantly reduced. These factors in combination with consistent production diversified across plants and product lines, as part of a prudent growth strategy, have allowed Iofina to continue to excel in spite of the global economic issues caused by the Covid-19 pandemic."
By Tapan Panchal; firstname.lastname@example.org
Copyright 2020 Alliance News Limited. All Rights Reserved.