LONDON (ShareCast) - Iodine producer Iofina has reported production disruption at one of its plants, hitting its shares.

Iofina, which produces iodine in Texas, Montana and Oklahoma in the US, said fracking and drilling activity had affected incoming brine volumes to its IO#3 plant.

The company said it was working with the operator of the plant to minimise brine volume inconsistencies and would update the market on that in due course.

It added: "The increased drilling is a positive indication of the operator's view to continue expansion."

Iofina said production at its IO#2 plant was consistent and it was making good progress with construction of two other plants.

Chief Executive George Lantz said: "We look forward to steadily increasing production as additional plants continue to come on line and we look forward to updating the market on production levels on a quarterly basis. Management continues to expect iodine production during 2014 to be on plan."

Shares fell 6.46% to 76p at 15:45 in London.

PW

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