Although we dont believe in timing the market or panicking over every stock fluctuation, understanding how a business is performing, competing and changing is vital to sensible investment.
What: The share priceofIofina(LSE: IOF) a company that specialises in the production of iodine and iodine specialty chemical derivatives has rocketed 27% in trading so far this morning, following publication of an update on the companys September production and the preliminary grant of a water permit in the State of Montana.
So What: Iofina says that there was a month-to-month production increase of 18.6%, which rose to 28 metric tonnes (MT) of crystallised iodine. That means that Iofina achieved itsforecastmonthly production target for September.
The company also announced thatits wholly-owned subsidiary, Atlantis Water Solutions, has now beenpreliminarilygranted a water permit bythe State of Montanas Department of Natural Resources and Conservation.
The permit allows for diversion of water (which is expected tobe used in Dawson, McCone, Richland, Roosevelt and Sheridan counties inMontana for the majority beneficial use by oil field services companies for oilfield development), development of awater diversion site, and construction of ten-bay fill station depot.
Now What: Having now met its monthly production target for September, the companyreiterated its year-end forecast for the production of325350 MT of crystallized iodine.
Iofina says that the next stage of the water permit process is a brief public notice period and that unless there are any objections (which is says is unlikely), the preliminary permit will be granted untilthe Atlantis Water Depot is completed, followed by thegranting of afinal permit.
With regard to what it describes as the non-core water project, Iofina says that it will belooking fora joint venture partner, or specific project financing, exclusively within Atlantis Water Solutions, rather than funding itwithIofinas current cash-on-hand.
President and CEO Dr. Tom Becker commented:
Our iodine production from our IOsorb plants continues to improve. We remain focused on optimization of these plants and I am pleased with the results to date.
The preliminary granting of Iofinas water permit in Montana is a great accomplishment for the Company and we look forward to updating the market with regards to the future plans of our water division, Atlantis Water Solutions.
Even with todays massive rise, Iofinas share price remains 67% down on this time in 2013, since when the AIM All-Share has only dropped 5%. And Iofinas share price trails its index over five years, too, recording a 30% fall, compared with a 17.5% gain by the AIM All-Share.
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Jon Wallis has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.