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Iofina poised to take advantage of improved iodine market

Spot prices have risen 25% to US$24 per kg since the start of the year and continue to head north, the group said.
Iodine in periodic table
Iofina says it expects to produce between 225 and 240 MT of crystalline iodine in the second half of this year

Iofina PLC (LON:IOF) is confident it can improve profitability and revenue as it takes advantage of an improved iodine marketplace, it said.

Spot prices have risen 25% to US$24 per kg since the start of the year and continue to head north, and moving forward, the group will increase output but at lower unit costs.

WATCH: Iofina benefiting from operational efficiencies

Underlying earnings in the six months to end June improved to US$0.7mln from US$0.2mln in the same period in 2016, on revenue, which fell 18% to US$9.4mln.

The operating loss was reduced to around US$0.3mln from a loss of US$1.2mln a year earlier, while the loss before tax was US$2.034mln (2016: loss of US$2.1mln).

Notably, the group's US plants produced 235.5 metric tonnes (MT) of iodine, which beat the firm's expectations of between 215 and 230 MT following the closure of the IO#3 plant, which was hitherto Iofina’s highest cost-per-kilo plant, and where the new IO#7 plant is now under construction with similar production capabilities and cost structure.

READ: New IO#7 plant set to increase production and cut costs for Iofina

Iofina says it expects to produce between 225 and 240 MT of crystalline iodine in the second half of this year.

"The group is now beginning to benefit from the operational efficiencies put in place over recent years and is in the process of executing a strategy predicated on prudent growth," said Dr Tom Becker, the firm's president and chief executive.

"Despite lower average iodine prices in H1 2017 verses H1 2016, the group's EBITDA performance improved - a sign of management's strong control over the operational aspects of the business. 

"With the continued uptick of iodine prices and the start of IO#7 construction, the group is poised to build on this performance as it increases iodine production and benefits from lower production costs," he added.

READ: Iodine producer Iofina sees better than expected output in first half

"The strong performance of Iofina Chemical and its diversity of products, including non-iodine halogen compounds, continues to benefit the group as we move through H2 of 2017."

Shares in London added nearly 14% to 13.25p.

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