23rd Nov 2015 08:19
LONDON (Alliance News) - Iodine production and iodine chemical derivatives maker Iofina PLC saw its shares fall on Monday as it warned it will take a hit from available brine for its facility in Oklahoma following an earthquake in the US state.
Iofina said a magnitude 4.7 earthquake occurred around five miles south of one of its IOsorb plants in Oklahoma. No injuries to employees or damage to the facility was recorded, but the Oklahoma Corporation Commission Oil and Gas Conservation Division has issued an implementation plan to reduce salt water injection in a nearby area.
The result of this will be a fall in available brine for the Iofina plant, which could spread to other plants. Iofina expects it will hit its production target for the second half, but said while the overall ramifications of the changes in Oklahoma are not yet clear, the company currently expects its crystalline iodine production rate may fall 10-20% per year.
Iofina shares were down 24% to 14.999 pence on Monday morning, one of the worst performers in the AIM All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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