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Iofina on target to produce 300 tonnes of iodine from revolutionary new plants

Iofina said this morning that it expects to be producing 300 metric tonnes of Iodine from its two operating plants, which are operating at 80-95% recovery of the chemical element

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Iofina (LON:IOF) said this morning that it expects to be producing 300 metric tonnes of Iodine from its two operating plants, which are operating at 80-95% recovery of the chemical element. 

Using its trademarked WET IOsorb system it extracts iodine from the waste brine created by oil and gas companies in North America.

Initially the company’s IO#1 plant was limited by both a shortfall of brine and the iodine content in the brine. 

The oil and gas operator supplying the brine has increased the current average daily volume along with iodine content, Iofina reported. 

By contrast IO#2 receives its brine directly from the producing wells, so it enjoys far greater certainty to iodine concentration and higher brine temperatures. 

The water temperature, in particular, helps the extraction process, and around 90% of the iodine is now being taken from the liquid. 

The group said the component parts of the third plant should be delivered by the end of the month.

The final construction of IO#3 is being carefully planned to target “the most optimal brine streams available”, which will lead to higher overall production of iodine, it added. 

Chief executive Lance Baller said: "We are excited about our WET IOsorb and the opportunity they afford to the group. 

Iofina remains focused on becoming a world leader in the production of iodine and iodine derivatives and the board looks forward to what it anticipates to be a fourth consecutive year of record revenues in 2013." 

City broker Investec upgraded its target price for Iofina in light of today’s upbeat statement. It repeated a ‘buy’ recommendation and the target was lifted to 164p from 117p.

Iofina’s strong operational performance continues with the latest release suggesting the crucial shift for the story from concept to cash is progressing well,” said analyst Stuart Joyner. 

On AIM Iofina shares advanced over 4% today to trade at 152.25p.

Quick facts: Iofina PLC

Price: 14 GBX

LSE:IOF
Market: LSE
Market Cap: £26.86 m
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