14th Jul 2015 08:19
LONDON (Alliance News) - Iofina PLC Tuesday said crystalline iodine production hit record levels in the first half of 2015 which topped off an overall "strong performance", but warned iodine prices will remain subdued for the remainder of 2015.
Iofina shares were up 11.5% to 23.70 pence per share on Tuesday morning.
In the second-quarter the company produced a record 166.2 metric tonnes of crystalline iodine, up from 92.9 metric tonnes a year earlier which led to first-half production totalling 294.1 metric tonnes, more than double the 139.9 million tonnes produced a year earlier.
The substantial increase in production was a result of the company focusing its iodine operations in its "core area", which led to all five of its operating IOsorb iodine plants increasing production.
Iofina said earnings before interest, tax, depreciation and amortisation was "positive" in the first-half.
Iofina expects to produce between 260 to 300 metric tonnes of crystalline iodine in the second half from its five operating IOsorb plants. However, production in the second half will be impacted by planned maintenance work and "lower seasonal production" in the fourth quarter.
Iofina said the maintenance and lower seasonal demand has already been taken into account in its full-year guidance but warned iodine prices remain "below historical trends" which is likely to continue throughout the rest of 2015.
Iofina is expecting to produce between 554.1 metric tonnes to 594.1 metric tonnes in 2015.
"Against the backdrop of a challenging iodine market, where prices are below historical trends, the company is committed to operating in the most efficient manner possible, and reducing its production costs," said President and Chief Executive Tom Becker.
By Joshua Warner; [email protected]; @JoshAlliance
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