(Alliance News) - Iodine producer Iofina PLC said Monday its third quarter production has left it well placed to deliver a record full year output, whilst prices continued to strengthen.
For the three months ended September 30, Iofina produced 167.3 million tonnes of crystalline iodine from its four plants in the US state of Oklahoma. This was 2.9% lower than the 172.3 million tonnes produced the year prior.
For 2019 to date, however, iodine production has hit a record 454 million tonnes. This is 4.0% higher than the 436.4 million tonnes the year before.
The firm now expects production in the second half of the year to "meet or exceed" its production target range of 305 million to 325 million tonnes of iodine. For the full year, Iofina anticipates to produce a record level of iodine.
During the third quarter, Iofina reported that iodine prices were continuing to move upwards with the spot price at the end of the period at USD32 per kilogram. Iofina expects further price gains in the fourth quarter of 2019.
"The company remains on track to achieve a record year of crystalline iodine production," Iofina Chief Executive Tom Becker said.
"Product sales are in line with our targets and we are further benefiting from the rising iodine spot price," Becker added. "Importantly, we are continuing to execute on our stated strategy of increasing production capacity, through the construction of IO No. 8, and expanding our specialty chemical business, all of which is putting Iofina in a stronger position for 2020 and beyond."
In mid-September, Iofina reported its achieved a "significant milestone" after signing an agreement for a new brine supplier for its IOsorb plant IO No 8. Construction has now begun, with construction expected to take six to seven months.
Shares in Iofina were 4.2% higher at 25.27 pence in London on Monday.
By Ahren Lester; ahrenlester@alliancenews.com
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Iofina (IOF)