Iofina upbeat as it returns to normal production levels

Iodine and iodine specialty chemical derivative explorer and producer Iofina provided an update to the market on Friday, over 2016 crystalline iodine production totals and iodine production expectations for the first half of 2017.

The AIM-traded firm said it produced a total of 218.6 MT of crystalline iodine in the second half of 2016 from its five ‘IOsorb’ plants.

It said 2016 total crystalline iodine production was 474.2 MT.

As previously announced on 12 December, the company experienced lower-than-expected output from its ‘IOsorb’ plants in November and early December due largely to an acceleration of its partners' fracking operations, which affected 2016 H2 production totals.

The board reported on Friday, however, that more normalised production levels resumed in late December.

As also previously announced, saltwater disposal well injection restrictions by the state of Oklahoma impacted the brine supply during 2016 and consequently production output.

The company said it has implemented measures to mitigate the effects of these restrictions, and was continuing to work to good effect with its partners to optimise the volume and quality of brine available to its plants.

Looking towards 2017 production, Iofina said it expects to produce 235 - 255 MT of crystalline iodine in H1 2017 from the company's Oklahoma iodine plants.

Production revenues are currently held back by low iodine prices, but the chemical processing activity was continuing to trade successfully, with solid demand for its crystalline ‘IOflo’ iodine and its halogen based derivatives.

“While November and December of 2016 proved to be a challenging period at our ‘IOsorb’ plants, we are encouraged that as of late December we have returned to typical iodine production rates,” said Iofina president and CEO Tom Becker.

“Moreover our chemical processing activity has traded successfully throughout the year.

“We continue to evaluate new opportunities and are committed to growth at both Iofina Resources and Iofina Chemical in 2017, and will update the market accordingly.”