Iofina PLC (AIM:IOF, OTC:IOFNF) has unveiled plans for a partnership with a new brine supply associate and will construct its latest IOsorb iodine plant, IO#10, in Western Oklahoma.
Choosing the area stems from its ability to supply feedstock for the iodine operation,
Collaboration between Iofina and its unnamed partner is underway, focusing on design strategies to optimise brine delivery to the IO#10 site.
Company resources, including existing cash and loan facilities, will finance the new site.
Initial operations for IO#10 are projected to commence in the fourth quarter of 2023, with brine water processing anticipated around mid-2024.
While specifics regarding the construction timeline remain undisclosed, expectations for IO#10's design and production capabilities closely resemble those of IO#9.
"IO#10 will deliver a further step change in our iodine production and will be another milestone in our growth strategy, whilst planning and discussions for IO#11 continue to progress," said chief executive Tom Becker.
In an operational update covering the third quarter, Iofina said it produced 156.9 metric tonnes (MT) of crystalline iodide, an increase from 143 MT in the previous year.
This yield emerged from six IOsorb plants in western Oklahoma, inclusive of the recent IO#9.
Challenges arose during the IO#9 ramp-up, especially concerning iodine production optimisation with their partner. Nevertheless, recent months have seen a steady increase in IO#9's output.
Iofina's second-half production forecast leans towards the lower end of a 325-350 MT estimate. Spot prices in the iodine market consistently hover between the upper sixties to seventy dollars per kilogram, underscoring its robust nature.