Iofina (AIM:IOF), the AIM-listed iodine producer and specialty chemicals manufacturer, said on Friday that crystalline iodine production fell short of expectations in the third quarter, prompting it to lower its full second-half guidance.
The Iofina Resources unit produced 205.2 metric tonnes of crystalline iodine in the quarter, down from 215.8 tonnes in the same period last year, a shortfall the company attributed to lower-than-expected water volumes at its plants, maintenance work, and delays completing the IO#11 pipeline and commissioning IO#12.
Suppliers in Iofina's central Oklahoma core area had to shut down certain disposal wells temporarily to carry out upgrades, though the company said water volumes have since begun improving as flows work back toward previous levels.
As a result, Iofina now expects second-half production of 440 to 455 tonnes, down from the 460 to 485 tonnes it had guided to previously, with the outcome still dependent on water supply recovering at the affected legacy plants and on IO#12's contribution.
Despite the setback, the quarter brought real progress on the company's expansion pipeline: the additional brine supply pipeline at IO#11 was completed, IO#12 has been handed to the operations team and should begin producing iodine soon, and Iofina signed agreements to begin construction of two further plants, IO#13 and IO#14, with groundwork due to start shortly.
"Whilst production in the Period was lower than anticipated, we are encouraged by the positive adjustments made by our water supply partners and continue to work to restore volumes to previous levels," said president and chief executive Dr Tom Becker.
Iofina said iodine pricing remains strong, in the mid-$70s per kilogram and above, a backdrop it expects to support further revenue growth and profitability as its expanding production capacity comes online, building on record first-half 2026 results of $31.3m in revenue and $6.6m in adjusted EBITDA.
Becker added that the company expects to "accelerate production growth towards 2000MT, strengthen profitability and deliver increasing value for shareholders" as the new plants ramp up.
