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Iofina profitable last month as May's production beats expectations

Published: 11:16 03 Jun 2014 EDT

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Iofina (LON:IOF) said its production of crystallised iodine beat expectations in May and was up 86% month-on-month as it revealed it moved into profit after putting the brakes on costs.

The US-focused group produced 40.5 metric tonnes iodine, which it extracts from the brine water by-product from onshore oil and gas drilling. This compared with 21.8 tonnes in April. 

The group also reported positive EBITDA and a net profit, suggesting the corner has been turned for Iofina, which has endured a turbulent few months in its very short history.

The IO#1, IO#2, IO#3 and IO#4 production plants posted record monthly production, although IO#4 failed to meet its target for the month.

IO#5 remained idle as the plant awaits connection to the power grid, while IO#6 is still under construction, but should be in production by the end of the quarter.

Significantly, Iofina’s engineers have found a way of eliminating an unspecified chemical that will save the group US$4,000 a day, or almost US$1.5mln a year, across all its plants.

Chairman Lance Baller said: "We are very pleased to have exceeded this month's targeted production, with an 86 per cent increase over last months' production. 

“The dedication and focus of Iofina's employees continues to demonstrate the quality of the company's strong assets and technology.  

“We still have much to accomplish in the coming months but already are starting to make progress.”

Shares rose 3% to 60.5p and have now risen by 40% this month so far.

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on 01/16/2024