Iofina plc (LSE:IOF) has completed the installation of an additional brine water source at its IO#11 facility, increasing both the production capacity and operational resilience of the iodine plant. The site can now receive brine from two separate sources, with the additional supply expected to lift annual crystalline iodine production by approximately 45 to 65 metric tonnes.
IO#11 Output Expected to Rise by Around 50%
The additional brine feed is projected to increase annual production from IO#11 by roughly 50%, providing Iofina with another source of incremental output from its existing infrastructure.
The expansion forms part of the group’s broader strategy to increase iodine production through a combination of improvements at operational facilities and the development of new IOsorb plants.
IO#12 Remains on Track for Third-Quarter Start-Up
Iofina also confirmed that construction of its new IO#12 plant continues according to schedule, with commissioning and start-up targeted by the end of the third quarter of 2026.
Once operational, IO#12 is expected to become the largest IOsorb facility in Iofina’s portfolio. The plant is forecast to produce between 170 and 220 metric tonnes of crystalline iodine annually.
The additional capacity from IO#11 and IO#12 represents further progress towards Iofina’s longer-term objective of reaching annual iodine production of 2,000 metric tonnes. Bringing IO#12 online would also provide a significant increase in group production capacity as the company seeks to expand its position in the iodine market.
Financial Strength Supports Growth Strategy
Iofina’s outlook is supported by underlying financial growth and relatively low leverage, while management’s expectations point towards a substantial increase in production during 2026 as additional capacity becomes available.
However, free cash flow conversion has been uneven, while technical indicators currently present a more cautious near-term picture. The shares are below shorter-term moving averages and the MACD remains negative. Valuation appears broadly balanced rather than indicating a clear discount at current levels.
More About Iofina plc
Iofina plc is a vertically integrated iodine producer and specialty chemicals manufacturer. Through Iofina Resources, the group operates eight IOsorb iodine extraction facilities in Oklahoma and is the second-largest iodine producer in North America.
The group also operates Iofina Chemical, which manufactures a range of halogen-based specialty chemicals using raw iodine and other materials. Its integrated business model combines iodine extraction with downstream chemical manufacturing.
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