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(Sharecast News) - Iodine producer Iofina has lowered its production forecast for the second half of 2026 after reporting weaker-than-expected output in the third quarter, due to reduced water supplies, maintenance work and delays at two of its plants.
The AIM-listed company produced 205.2 metric tonnes of crystalline iodine in the three months to September, down 4.9% from 215.8 tonnes a year earlier.
Iofina said lower-than-expected water volumes at its plants in Oklahoma had affected production, alongside delays in completing an additional brine supply pipeline at its IO#11 facility and commissioning its IO#12 plant.
It now expects second-half production of 440-455 tonnes, although this remains dependent on water supplies recovering to anticipated levels and the contribution from IO#12.
The company said water volumes had already improved following upgrades by suppliers in central Oklahoma, which had temporarily required certain disposal wells to be shut down.
Meanwhile, Iofina reported progress with its expansion strategy, having completed the additional pipeline at IO#11, while IO#12 has been handed over to its operations team and is expected to begin iodine production shortly.
Agreements have also been secured to begin construction of two further plants, IO#13 and IO#14, with work expected to start soon.
Iofina said the iodine market remained strong, with prices in the mid-$70s per kilogram and above, providing a favourable backdrop for further revenue and profit growth following record first-half results.
Chief executive Tom Becker said: "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."
He added that the expansion programme would help accelerate production growth towards the company's 2,000-tonne target while strengthening profitability and delivering increased shareholder value.
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