Iofina makes progress on Oklahoman production plant

Specialty chemical manufacturer Iofina has continued to make progress on the construction of IO#8, its fifth iodine production plant in western Oklahoma.

Iofina said the plant, where work began in late September, was coming together on time and within budget and was also expected to contribute to production in the first half of 2020.

The AIM-listed group said iodine production at its existing production plants continued to perform in line with expectations, with Iofina Resources on track to produce 305-325 metric tonnes of crystalline iodine in the second half.

Iofina anticipates that the addition of IO#8 will grow production rates further next year, which comes at an advantageous time for the group as the iodine global market supply continues to be "tight".

Chief executive Tom Becker said: "We are pleased with this year's production rates, with the final year-end total expected to be a record yearly production volume of iodine for the company.

"As we seek to continue to grow our production capacity next year, we are well-positioned to take advantage of the current, positive environment of the iodine market."

Iofina also said that subsidiary IofinaEX was continuing to develop its strategy in the CBD/hemp space and would soon provide further information on developments made within its Kentucky lab.

Additionally, Iofina's directors were said to be "diligently exploring" various options regarding debt restructuring and were "confident of a solution" in the first half of the coming year.

As of 1120 GMT, Iofina shares were down 1.29% at 26.80p.