Iofina PLC (AIM:IOF, OTC:IOFNF) has announced a collaboration with a new brine supply partner, aiming to set up its latest IOsorb iodine facility, IO#10, in Western Oklahoma.
The selected location is due to its potential to provide the necessary feedstock for the iodine venture.
Work is ongoing between Iofina and this undisclosed partner, centring on design approaches to enhance brine transport to the IO#10 location.
The development of this new facility will be funded through the company’s existing financial resources, including cash and borrowing options.
The anticipated kickoff for IO#10’s operations is set for the fourth quarter of 2023, with the processing of brine water expected by mid-2024.
While the exact construction timeline is yet to be revealed, IO#10’s design and production are expected to be on par with IO#9.
President and CEO, Dr Tom Becker, stated: “We are delighted to have agreed on the terms to construct our newest iodine plant, IO#10, in Western Oklahoma, with a brand-new partner, which quickly follows the completion and switch on of IO#9. IO#10 will deliver a further step change in our iodine production and will be another milestone in our growth strategy, whilst planning and discussions for IO#11 continue to progress.
“The Company continues to experience strong sales, supported by the ongoing robust iodine prices. Whilst the ramp up of IO#9 has taken slightly longer than planned, we are working closely with our partner to increase water volumes to the new plant, and we are starting to see an increased output through October. The Company will provide a further update on progress in due course.”
“IO#10 marks another pivotal moment in boosting our iodine output and signifies a leap in our expansion approach. Meanwhile, plans and dialogues for IO#11 are moving forward,” commented CEO Tom Becker.
In a recent update covering Q3, Iofina reported producing 156.9 MT of crystalline iodide, a rise from 143 MT the previous year. This production sprouted from six IOsorb facilities in Western Oklahoma, including the latest, IO#9.
Despite initial hiccups with IO#9’s production optimization in collaboration with their partner, the recent months have showcased a consistent growth in its production.
For the latter half of the year, Iofina’s production forecast leans towards the lower spectrum of the 325-350 MT estimate. The ongoing spot prices in the iodine market remain stable, fluctuating between the high sixties and seventy dollars per kilogram, highlighting the market’s strength.
