13th Jan 2015 08:31
LONDON (Alliance News) - Iofina PLC saw its shares rise on Tuesday after it said production during 2014 almost doubled, with further increases in production expected in 2015 through improved plant efficiencies and strategic growth.
Iofina shares were up 8.0% to 33.75 pence per share on Tuesday morning.
The company, which specialises in the production of iodine and chemical derivatives, produced a total of 327.7 million tonnes of crystalline iodine in 2014, a 90% increase compared to the 171 million tonnes a year earlier.
Iofina's production comes from its IOsorb plants across the US, and it said the increase was achieved despite lower than expected water volumes in Oklahoma during December, which was caused by fracking in Iofina's production area, it said in a statement.
Iofina is expecting to produce between 220 and 260 million tonnes of crystalline iodine in the first half of 2015 from its existing IOsorb plants.
For 2014, Iofina is expecting overall revenue to be 35% higher than in 2013, a year in which the iodine price fell sharply. The company added that its chemical derivatives producer, Iofina Chemical, continues to perform well.
"I am delighted that that we had a productive second half of 2014 and continue to optimize iodine production at our IOsorb plants while providing the iodine chemical derivatives market with quality, innovative products through Iofina Chemical," said President and Chief Executive Tom Becker.
"Through improved plant efficiencies and strategic growth the board expects 2015 to be an exceptional year for Iofina and looks forward to updating shareholders on progress," Becker added.
In addition, Iofina said the State of Montana has reviewed numerous objections submitted via the short public-notice period regarding the company's application for a water permit. The company was granted a preliminary permit in October.
The Department of Natural Resources and Conservation has rejected all but one objection from a local water-supply competitor, Iofina said. The hearing will be held on February 19, and Iofina plans to "vigorously defend the granting of the preliminary permit and continues to move forward with execution plans for this water depot project," it said in a statement.
By Joshua Warner; [email protected]; @JoshAlliance
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