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Iofina profitable as second-quarter production hits record level

Iofina, which makes iodine from brine taken from onshore oil and gas production in the US, said it is trading profitably as it updated on production.
Iofina profitable as second-quarter production hits record level

Iofina (LON:IOF), which makes iodine from brine taken from onshore oil and gas production in the US, said it is trading profitably as it updated on production.

Although June’s output was down month on month by 0.9 metric tons at 30.6 tons of crystallised iodine, the company processed a record 92.9 tons in the second quarter, representing a 98% uplift. 

The monthly fall in production was caused by severe electrical storms in Oklahoma.

Separately, Iofina said it expects plants IO#5 and IO#6 come online this month.  

While the group said the iodine market remained challenging, it was still able to trade profitably both at the EBITDA and net profit level.

Chairman Lance Baller said: "We are pleased to report a strong second quarter. 

“While we had lower production for the month of June, we remain firmly focused on a daily basis on achieving consistent production.   The strong June production exit is very encouraging.

"The iodine market continues to be challenging, but the company saw iodine prices remain steady in June.  

“We continue to have strong interest in long term supply agreements with multiple iodine customers.  

“These agreements would allow the company a built in hedging mechanism from price volatility.  

“The company had near record sales again for the month which demonstrates good demand for our products."

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