Business
June Production Update
June Production Update.
About this update from Iofina Plc
[{"type":"text","content":"\n \nRNS Number : 7904L Iofina PLC 09 July 2014 \n \n\n9 July 2014\n \nIofina plc\n(\"Iofina\" or the \"Company\")\n(LSE AIM: IOF)\n \nJune Production Update \n98% increase in quarterly production for Q2 2014\n \nIofina, specialists in the exploration and production of iodine and iodine specialty chemical derivatives, are pleased to update the market today on continued progress and production during the month of June (or \"the Period\"). \n \nThe Company reports that it has produced 30.6 metric tons (mt) of crystallised iodine at Iofina Resources in the Period, compared with 40.5 mt for May. The decrease for the month was attributable to production downtimes during the second week of June that were caused by severe electrical storms to all Oklahoma plants which temporarily shut-in operations of the oil and gas producers and therefore cut off supplies of co-produced iodine rich brine water. One of the Company's plant sites was struck by lightning and suffered minimal damage, as the engineering design on the grounding system worked as planned during these unusual weather events and the plant was back online within 48 hours. The exit rate of production for the month was as expected and has remained strong into July in line with guidance, which the Company reiterates for the year as both IO#5 and IO#6 come online this month. The Company produced a record 92.9 mt for the second quarter compared to 47mt for the first quarter - an increase of 98 per cent. The Company was also profitable for the Period in terms of both EBITDA and net profit.\n \nIO#1 Production Plant\nIO#1 had weather related issues during the period. During June, IO#1 was subject to a test that could potentially eliminate a certain chemical, resulting in additional savings. While this test had mixed results at this particular location, the results show promise for our Oklahoma plants and a test will be performed at IO#3.\n \nIO#2 Production Plant\nIO#2 experienced above average down-time due to extreme weather, which in turn caused power outages in the area. Although potential downtime was allowed for within the Company's projection model the Board did not anticipate such extreme weather conditions. Controllable run-time at the plant was however excellent and should rem...