11th Jul 2016 08:11
LONDON (Alliance News) - Iofina PLC on Monday said production in the first half of the year was at the bottom-end of the company's guidance range and over 13% lower year-on-year but said revenue from the chemical division has risen despite a drop in iodine prices.
Iofina explores for and produces iodine and iodine speciality chemical derivatives. It said iodine production in the first half totalled 255.6 million tonnes, at the bottom of the 250.0 to 270.0 million tonnes target range.
However, that is over 13% lower than the 294.1 million tonnes produced a year earlier.
"The board is pleased with H1 2016 production, which has been achieved despite recent higher-than-expected diversion of brine for fracking and power outages across our operating regions due to adverse weather conditions," said the company.
Despite the first half production achieving only the lower end of guidance, Iofina stuck with the same guidance range for the second half of the year.
Iofina Chemical has "performed well" since the start of the year, and revenue from the segment will be up in the first half compared to the year before despite a fall in iodine prices, the company said.
"Iodine prices, while much lower than historical trends, continue to remain fairly stable and currently are generally at or below USD24 per kilogramme for large volume buyers," said Iofina.
Iofina said it has continued to reduce costs in the period and said it also progressing debt talks. The company signed a deal to extend its current convertible debt and to secure a new USD10.0 million facility back in June and said Monday that talks were "making progress to complete".
Iofina also said it was expecting to receive a a ruling in the second quarter of this year on the judicial review of the company's water depot permit for the non-core Atlantis field in the US state of Montana, but said it has not yet received that ruling. The company said it is "not certain" when that ruling will come through.
Iofina shares were down 3.8% to 15.02 pence per share on Monday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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