Iofina Shares Drop After Crystallized Iodine Output Guidance Lowered

By Alex MacDonald

LONDON--Shares of U.K.-listed iodine producer Iofina PLC (IOF.LN) dropped 27% Thursday after it lowered its crystalized iodine production target.

Iofina, which specializes in the exploration and production of iodine and iodine specialty chemical derivatives, said it now expects to produce around 325-350 metric tons of crystallized iodine this year. This compares with its previous target of producing 400 tons this year, announced in April.

The new target takes into account its latest fracking schedules, delays in the start of production, and lower water volumes.

Iofina produced 23.6 tons of crystallized iodine in August compared with 24.5 tons in July.

Despite the lower production forecast, the company said revenue during the first nine months of the year is expected to surpass total revenue for all of 2013 due to strong demand for its iodide derivatives.

Iofina's shares fell as much as 27% on the news before settling 17% lower at 45.5 pence a share. The company's shares are down 53% since the beginning of the year, giving it a market capitalization of around GBP70 million or $113 milllion.

-Write to Alex MacDonald at [e-mail]

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