Iofina plc (LON:IOF), which extracts iodine from brine water, has told investors it performed well in the first three months of 2017 despite having to deal with a couple of challenges.
The firm’s IOsorb plants have performed solidly so far this year and are producing crystalline iodine at forecast rates, while its Iofina Chemical division benefitted from strong demand for non-iodine halogen derivatives.
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Even with water quality and brine supply issues at its IO#3 plant, the group still produced 118.7 tonnes of crystalline iodine in the first quarter of the year (Q1 2016: 124.6 tonnes).
Issues at IO#3 won’t hurt overall production too much
The minor niggles are likely to continue into the second quarter, although Iofina reassured investors that, like in the first three months, they would only have a marginal impact on overall production.
The company still expects to produce between 215 and 230 metric tonnes of crystalline iodine in the first half of the year, even without further contribution from IO#3.
“Iofina has performed well in Q1 despite challenges,” said chief executive and President Tom Becker.
“Over the last two years Iofina has focused on improving production efficiencies as we have proven our iodine production technology at multiple plants. The company is now positioned to apply our expertise and execute growth plans in a prudent manner.
“The recent trends in the iodine market, including pricing and demand for iodine based goods, are encouraging and Iofina is well positioned to benefit from any price increases.”
Iodine prices starting to come back
Iodine prices were at a low rate in 2016 but since the turn of the year have stabilised and are starting to pick up again.
Iofina is confident that trend will continue throughout this year based on current demand trends and the reported reduced output from several Chile-based producers.
Shares closed at 9.1p on Monday.