Iofina Half-Year Iodine Production Increases, Looks To Raise Output

(Alliance News) - Iofina PLC said Friday its iodine production in the first half of 2019 ...

Alliance News 12 July, 2019 | 10:43AM
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(Alliance News) - Iofina PLC said Friday its iodine production in the first half of 2019 increased, while its financial position was strengthened by the payment of debt and new funds raised.

Iofina, which produces chemical derivatives from iodine and halogen, said that for the six months to the end of June, 286.7 metric tonnes of crystalline iodine were produced, up 9.8% from 264.1 tonnes the same period the year before.

Output in the second quarter was significantly higher than in the first quarter, due to weather conditions in the first quarter, and an efficiency fall in the IO#6 plant, which has now been remedied.

In the first half, iodine prices continued to rise due to the tightness in supply and continued solid demand, Iofina said. In the third quarter of 2019 so far, most spot market iodine sales have been over USD30 per kilogram, up from the same period the prior year, when spot iodine prices were around USD25.

For the second half of 2019, Iofina expects production from its current plants to total between 305 and 325 metric tonnes.

During the first half, Iofina raised GBP7.0 million in equity, which will go towards financing the construction of plant IO8 and upgrading its existing plants.

In addition, Iofina fully paid down its USD3.3 million term loan facility, and saw USD4.2 million of debt converted into equity by Southern Rock Insurance Co Ltd, further reducing debt.

"The group had a strong start to the year, with many positive achievements including an almost 10% increase in iodine production year-on-year. Whilst this was accomplished through four operating IOsorb plants, we continue to evaluate options for a fifth plant, IO8, which would significantly increase production rates in 2020," said Chief Executive Officer Tom Becker.

Shares in Iofina were up 2.8% at 26.72 pence on Friday.

By Dayo Laniyan; dayolaniyan@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Iofina PLC 18.00 GBX 2.86 -

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