Iofina PLC (AIM:IOF, OTC:IOFNF) said its newest IOsorb iodine plant in Western Oklahoma is now producing crystalline iodine at the rate expected.
Named IO#9, the production plant has taken longer than expected to ramp up since it was switched on in June 2023, as the company mentioned last month.
With iodine extracted from waste brine produced by onshore oil wells, upgrades to its water gathering system by the company's new partner have now improved the flow of brine water to the plant, Iofina said.
This has meant it has been able to steadily increase crystalline iodine production with the higher water flow, it said, confirming that the plant is now operating within the expected range of output.
Groupwide iodine production in the second half of the year is now expected at the bottom, or very marginally below the bottom end, of the forecast range of 325-350 metric tonnes (MT) from its six iodine plants.
President and chief executive Tom Becker said the plant was now “back on track”.
“Looking ahead, we feel there is an opportunity with our partner to potentially increase flow even further than the current production rate.”
In the meantime, he said planning for IO#10, also in Western Oklahoma, is “advancing well” and reported progress in negotiations around further new plants.
Last quarter, Iofina reported its best ever first-half results as sales volumes doubled and iodine prices rose again.