Iofina PLC (AIM:IOF, OTC:IOFNF) increased crystalline iodine production by more than 14% in its latest half year with prices steady and likely to rise slightly over the rest of the year, predicted the company.
A new iodine from brine extraction production plant, IO#10, is also on track for commissioning in the second half with talks underway with its preferred partner about an additional plant, IO#11.
In the first six months of 2024 output from Iofina’s existing plants was 276.1 metric tonnes, up from 241.5 MT in the same period a year ago.
Based on current production levels and the addition of IO#10 in this quarter, Iofina anticipates production in the second half of 2024 to be in the range of 355 MT - 380 MT.
IO#10 is expected to make a “material contribution” in the second half of the year, with the capacity to produce 100-150MT per annum though total production for 2024 will depend on the start-up date and the rate of ramp-up for IO#10.
Tom Becker, chief executive, stated: "The management team has been focused throughout the period on delivering the planned step-change in growth, so we are pleased that IO#10 remains on track to be switched on in the third quarter, whilst also advancing negotiations with our preferred partner for IO#11.
"At the same time, we have been working to ensure consistent output from our existing plants, with production up 14.3% in the first half compared to the same period last year.
“Additionally, we are working with multiple partners on projects to possibly improve brine supply at several existing plants.
"By executing our growth plans combined with the encouraging news in the expected strength in iodine prices, we are excited by the outlook for the rest of the year."