Iofina says brine reduction at IO#3 will have only small impact on forecast production

Iofina's shares are down almost 12 % after it said a reduction of brine at IOsorb plant IO#3 will have only a small impact on its forecast production, with little impact on planned net cash flow.

The companynow expected to produce 215-230 MT of crystalline iodine in the first half of 2017. This followed Iofina being notified recently that the injection volumes at the Salt Water Disposal Well (SWD) operated by its partner at the site of IOsorb plant IO#3 would be reduced.

"After reassessing the currently anticipated 2017 performance of all our plants, the company has concluded that the reduction of brine at IO#3 will have only a small impact on the company's forecast production," said Iofina.

"Additionally, the company anticipates that this reduction in available brine will have little impact on the company's planned net cashflow."

Iofina, a specialist in the exploration and production of iodine and iodine specialty chemical derivatives, said it would update the market once it have analysed options and finalised plans for utilization of IO#3.

Chief executive Tom Becker said the reduction in available brine at IO#3 was likely to provide opportunities for Iofina to source an alternative brine supply at the current location or it would accelerate the company's plans for a new iodine production location.

"Execution of plans to produce iodine at a new location would lead to increased iodine output rates versus the company's production rate at the end of 2016, and reduce the Company's overall iodine production costs," he said.

At 10:19 GMT, shares in AIM-traded Iofina were down 11.9% to 8.92p each.