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Iofina on course to exceed production forecast after 'landmark quarter'

The group produced more iodine than expected and began implementing management's strategic expansion plans
picture of oil wells
Iofina extracts iodine from the brine produced in oil wells

Iodine extractor Iofina plc (LON:IOF) might beat its production guidance of between 225-240 metric tonnes in the second half of 2017.

The bullish update followed production of 125Mt of iodine in the three months to September, making year to date production of 360.5Mt.

 

Tom Becker, Iofina’s chief executive, described it as a landmark quarter for the company with improved sales of halogen-based derivatives also boosting its chemicals arm.

“The group produced more iodine than expected and began implementing management's strategic expansion plans by starting the construction of IO#7, at a time when global iodine prices continue to recover.”

Spot prices of iodine have risen by 25% this year.

Iofina extracts iodine from the brine produced from onshore oil and gas well using its IOsorb technology.

READ: Iofina poised to take advantage of improved iodine market

One plant, IO#3 has been taken off line and is being replaced by a much more efficient unit, IO#7, which is scheduled to come on stream in early 2018.

Becker added: "We expect IO#7 to be online in early 2018, which will take our total number of IOsorb plants back to five.

“IO#7 will immediately increase production and reduce our overall plant level iodine unit production costs, thereby well positioning the group for the future." 

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