(Alliance News) - Iofina PLC on Wednesday said production in its latest half was below guidance as expected, although demand "remained robust".
Shares in Iofina were down 12% at 23.00 pence in London around noon on Monday.
The Colorado, US-based iodine producer said total production increased 13% to 317.8 metric tonnes from 282.0MT the previous year. However, this aligned with Iofina's guidance that H2 production "would either be at the bottom or very marginally below the forecast range" of between 325MT and 350MT.
Crystalline iodine production, meanwhile, increased 16% year-on-year to 160.9MT in the fourth quarter of 2023. Iofina, which also specialises in the manufacture of speciality chemical derivatives, said the increase was due to its IO#9 plant operating at an improved production rate in the second half of the quarter.
"Whilst we acknowledge that IO#9 took longer to operate at full capacity than we initially anticipated, we are happy that the plant is now producing at expected levels," commented Chief Executive Officer Tom Becker.
For the full year, Iofina said crystalline iodine production rose 8.4% to 559.3MT from 516MT the prior year.
Also during the fourth quarter, Iofina said demand for its crystalline iodine remained robust although sales "had mixed results" for iodine derivatives.
For the first half of the current year, Iofina said it expects to product between 275MT and 295MT of crystalline iodine, resulting in an increase of between 13% and 22%.
"The company reiterates that H1 iodine plant production has historically always been lower than H2 production due to the effect of lower temperatures on production in the winter months, whereas H2 production benefits from greater output in the warmer summer period," Iofina added.
CEO Becker meanwhile said: "With continued robust iodine prices, strong demand for the group's crystalline iodine, and the ongoing execution of Iofina's growth plans, the board of Iofina is confident that the momentum built during 2023 will continue to drive progress throughout 2024."
By Emma Curzon, Alliance News reporter
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