Shares in Iofina PLC (AIM:IOF, OTC:IOFNF), the iodine producer and specialty chemicals manufacturer, rose 4.4% to 52.2p after it said it had fully installed an additional brine water source at its IO#11 plant, a move it expects to lift crystalline iodine output there by half.
The company said the extra supply should add roughly 45 to 65 metric tonnes of crystalline iodine a year once running at full capacity.
That equates to an anticipated 50% increase in annual production from the plant.
IO#11 now draws on two separate brine water sources, which Iofina said gives it both extra capacity and greater operational resilience.
Brine, the salty water pumped from underground, is the raw feedstock from which Iofina extracts iodine using its proprietary IOsorb technology.
The installation follows an agreement for the additional supply that the company announced on 5 June 2026.
Iofina also confirmed that construction of its next plant, IO#12, is progressing as planned and remains on track to become operational by the end of the third quarter of 2026.
Once running, IO#12 is expected to be the group's largest IOsorb plant, with annual crystalline iodine production forecast at between 170 and 220 metric tonnes.
The two developments feed into a longer-term target that the company has set out repeatedly.
Dr Tom Becker, president and chief executive, said the additional brine supply at IO#11 would deliver a substantial upgrade while demonstrating the operational flexibility of Iofina's facilities.
He added that both projects were important steps in the company's growth strategy and reinforced what he called a clear pathway towards its firm ambition of producing 2,000 metric tonnes of crystalline iodine annually.
The company gave no update on pricing or demand in the announcement.
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