Iofina expects a significant uplift in iodine production over the remainder of the year as its new plant, IO#9, comes onstream.
“Importantly, demand for our products remains high and we are benefiting from the iodine spot price maintaining its $70/kg level,” Tom Becker, chief executive, added.
Iofina, which extracts iodine from waste brine produced by onshore oil wells in Oklahoma, produced 241.5 metric tonnes (234Mt) of crystalline iodine from five IOsorb plants in the half year to June, which was in the middle of its projected range of 235-250Mt.
Following the commissioning of IO#9 in June, its sixth plant, crystalline iodine production in the second half of 2023 should total between 325-350mt (H2 2022: 282mt).
IO#9 required additional equipment and installation meant a cost of US$5.5mln, though further plants are expected to be cheaper
Becker added that discussions with prospective partners for its next plant, IO#10, continue to move forward.
Spot iodine prices have remained steady near $70/kg throughout the period with iodine demand for use in X-ray contrast media and pharmaceuticals applications particularly strong and Iofina expects prices to stay around these levels for the foreseeable future.
Iofina added that it had also renegotiated its loans at a lower rate of interest. These now comprise a US$4mln term loan and US$6mln revolving credit facility, neither of which is currently being utilised.