17th Jan 2019 10:25
LONDON (Alliance News) - Iodine explorer and producer Iofina PLC said Thursday it produced record half year and full year volumes of crystalline iodine in 2018.
Shares in Iofina were up 8.9% Thursday morning at 14.90 pence each.
In the second half of 2018, Iofina produced 324.7 tonnes of crystalline iodine, a 21% year-on-year increase from 267.5 tonnes produced in 2017. For the full year, the company produced 588.8 tonnes versus 503 tonnes the year before, a 17% increase.
Iofina said the production increase came "in spite of operating only" four iodine production plants. The company attributed the rise to a new facility, opened in February, saying it "undoubtedly boosted" results.
The company said it is hoping to "replicate the success" of IO No 7 plant, the new facility, and sourcing locations for further plants will "continue to be a priority in 2019".
"I am delighted with the group's improved performance in 2018, in which we produced a record amount of iodine and successfully increased output whilst reducing the overall cost of production. Meanwhile, the restructuring of debt remains a priority for us and we are making good progress towards its conclusion," said Chief Executive Officer Tom Becker.
Iofina noted the increase in iodine price during the year. At the end of the year, iodine prices increased to USD26 to USD27 per kilogram from USD24 per kilogram at the beginning of 2018. Iofina expects the price to rise further in 2019.
Becker added: "We enter the new year in a strong position, seeing strong growth across the group. We are confident that this momentum can be maintained and that 2019 profitability will continue to improve in line with the iodine price."
Iofina is guiding for production in the first half of 2019 to be between 310 tonnes and 330 tonnes.
The company's debt renegotiations are at an "advanced stage" and Iofina expects to have an update in the "coming weeks".
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