---ADDS CEO QUOTE, BROKER COMMENT & SHARE PRICE---
Iofina (LON:IOF) said a magnitude 4.7 earthquake close to its iodine plants in Oklahoma will see a reduction in brine water supply that is the feedstock to these operations.
In all, three out of five of its IOsorb facilities will be affected by an enforced drop in activity at around 20 salt water disposal injection wells.
The company said the effects of an expected decrease in available brine are “not certain”; however, it reckons crystalline iodine production will fall by 10-20% on an annualised basis if the restrictions remain in place.
It says it second-half target of 260-300 metric tonnes of output is unaffected by the decision by the Oklahoma Corporation Commission (OCC).
"While the reduction in brine supply is likely to affect our production at three of our five IOsorb plants, we will be working together with our partners to minimise any production losses and together will investigate means to reduce the impact of this decision,” said Iofina chief executive Tom Becker
“We are pleased to be on track to meet second-half crystalline iodine production guidance and we intend to provide an update to the market once the impact of this OCC decision is clearer."
The shares fell 3.66p to 19.06p in afternoon trade.
The broker finncap in a note to clients said it was keeping its forecasts on hold until the situation is "better understood".
Speaking to Proactive in the wake of the update, CEO Becker said: "We and our partners are meeting with the OCC over the next coming weeks to understand the implications both long-term and short-term of the plan.
"If you read the plan itself the timetable for restrictions is not specified in the plan, so that is one of details we are trying to work out."