6th May 2014 09:47
LONDON (Alliance News) - Iofina PLC said Tuesday that production at its IO#1 production plant rose more than 25% in April, following a number of upgrades at the site.
The specialists in the exploration and production of iodine and iodine specialty chemical derivatives said that while IO#1 was temporarily closed during the period due to "necessary and minor" upgrades during the period, as a result of these upgrades, production at IO#1 increased by over 25%.
Iofina said the addition was "afforded by the successful completion of increased trucked water by the Operator. The plant is now running at record capacity." The firm also said that the plant had a promising exit-rate for the month and this is anticipated to continue throughout May.
The company produced 21.8 metric tons of crystallised iodine in the period, which it said is in line with its recently revised production target.
In April, Iofina said plants IO#1, IO#2 and IO#3 were profitable and IO#4 is anticipated to be profitable for May, after running continuously for a month. The IO#5 plant was commissioned during the month, following receipt of regulatory approval.
During the period, IO#2 was shut down for 13 days as the firm completed yearly plant maintenance over seven days; the other six days were due to a failure of the injection pump, owned by the Producer at their injection site, said Iofina.
IO#3 also recorded a record production rate, despite its limited brine due to the producer's recently announced fracking schedule.
Looking ahead, the firm said that construction for IO#6 continues to move ahead as planned, and is expected to be operational by the end of the second quarter. The company also said that its focus on reducing supply chain operating expenditure through all business lines will be noticed in April and realised throughout May.
"While the Company is in the early stages of bottom-line optimisation, we are beginning to see promising results. For the sake of transparency, the Board will report regularly on iodine production rates, whilst keeping mindful of competitive advantage," said Lance Baller, non-executive Chairman and co-founder.
The specialist iodine producer said in April it had successfully completed a USD5 million unsecured bond to be issued to Panacea Ltd in order to strengthen its cash position, which stood at USD2.3 million at the end of March, as it looks at expanding its production base.
Shares in Iofina were trading 4.40% lower at 38.00 pence per share Tuesday morning.
By Alice Attwood; [email protected]; @AliceAtAlliance
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