14th Dec 2015 08:31
LONDON (Alliance News) - Shares in iodine production and iodine chemical derivatives maker Iofina PLC rose in early trade Monday, after the company sought to reassure investors about the impact of a recent earthquake in Oklahoma on its operations in the US state.
A fortnight ago, the stock took a hit after Iofina warned available brine for its facility would decline due to the earthquake last month, which 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 it said could spread to other plants.
On Monday, however, the company said the availability of brine for its facilities has held up and said the further restrictions placed on salt water injection will not directly effect its other plants. While brine availability has declined, the company said this will only fall marginally year-on-year and said it is consulting with its partners on how to secure alternative brine sources to mitigate the problem.
This appeared to reassure investors, with Iofina shares up 11% to 10.2419 pence Monday morning, one of the best performers in the AIM All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Iofina