15th Apr 2015 07:29
LONDON (Alliance News) - Iofina PLC shares rose early Wednesday after the Iodine producer said production almost trebled on the year in the first quarter of 2015, including a record month in March, and the imminent shutdown of one of its plants won't affect its production targets for the first half of the year.
The company said it produced 127.9 tonnes of crystalline iodine in the first quarter, up from 47 tonnes a year earlier, and it still expects to produce between 220 and 260 tonnes in the first half of the year despite the shut-down of one of its plants.
It said that following an operational review it had decided to shut down its IO#1 'proof of concept' IOsorb plant. It cited a lack of brine water volume and the current iodine price as factors it took into consideration. However, it added that the shutdown will mean its iodine production resources will now be concentrated in one geographical area.
"We remain focused on profitable plant level operations and strategic, long-term growth with a vision to be a lower quartile cost iodine producer, and as a result, continue to evaluate all aspects of the company. The decision to terminate IO#1 should not have a material effect on overall iodine production," Chief Executive Tom Becker said in a statement.
The company also said that it took part in a hearing on February 19 regarding an objection to its Montana water permit. It said it expects a ruling on or before June 6. Additionally, and separately, The Department of Natural Resources and Conservation examiner denied the objector's request for an additional hearing with respect to discovery, it added.
Iofina shares were up 10.5% at 38.12 pence early Wednesday, making it one of the best-performing stocks on the AIM All-Share index.
By Steve McGrath; [email protected]; @stevemcgrath1
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