Iofina PLC (LON:IOF), which extracts iodine from waste brine water from oil production in the US, has restated production guidance after tough, but ultimately resilient start to the year.
Output for the first quarter was 124.6 metric tonnes (MT).
While down slightly on the same period in 2015, Iofina has closed a plant, IO#1, which means on a like-for-like basis the performance was solidly ahead of last year.
Generally, the winter months tend to be tougher “due to downtime driven by temperature and weather related issues”.
Additionally, the Oklahoma Corporation Commission has implemented plans to curb the amount of brine injected into the Arbuckle geologic formation, which could have led to knock-on disruption for Iofina; however, the company said it is working with its partners to ensure that its plants maintain production at current levels of brine process and “ideally expand volumes” at some operations.
Crucially, the company said it is confident of hitting it previously stated target of 250-270MT of iodine for first half.
"I am pleased by our response to the challenges faced in 2016,” said chief executive Tom Becker.
“Iofina produced more iodine from its Oklahoma operations at a significantly lower cost than the same period in 2015 and is on target to reach first half production goals.”
In the same announcement, Iofina said it says the price of iodine shows signs of settling at around US$25 per kilo, but admitted the evidence is not “definitive”.
Additionally, the company revealed it expects to receive a ruling on its Atlantis Water Solutions water permit in late second-quarter after a hearing regarding a requested judicial review.