Oklahoma is one of the biggest oil and gas states in America, producing almost 500,000 barrels of crude a day and huge quantities of natural gas.
Employing 15 per cent of Oklahoma’s workforce, the sector contributes $60billion (£48billion) a year to economic growth.
Production is well honed, generating not just fossil fuels but vast amounts of oilfield brine.
Progressive: Iofina has pioneered a way to extract iodine from the brine, turning dirty water into a valuable resource
Traditionally, this has been viewed as waste water. AIM-listed Iofina considers it an asset.
The firm has pioneered a way to extract iodine from the brine, turning dirty water into a valuable resource. Iodine has numerous applications.
An essential mineral that promotes growth and brain health, it is added to salt and other food across the world. Iodine is also used to make images clearer in magnetic resonance imagery (MRI) scans and is a critical element of products from pesticides to preservatives.
Iofina sells both pure iodine and related compounds used by manufacturers and industrial firms in the US and internationally.
Midas recommended the shares in September last ear, when they were 23.5p and boss Tom Becker was about to start work on his sixth iodine plant in Oklahoma.
That site is now up and running, with a seventh expected to come on stream next year.
Assessing which locations will yield the most iodine and developing partnerships with oil and gas firms in those places takes time and effort. But Becker and his team are experienced and well connected, they know where to look for deals and plan to continue doing so.
Recent hard work is paying off. Shares have risen 23 per cent to 29p over the past 12 months and Becker last week unveiled upbeat interim results, with pre-tax profit soaring 80 per cent to $4.7million (£3.8million), despite rising costs.
Annual production is set to hit nearly 600 tons, with Becker optimistic of reaching 1,000 tons a year by 2027 at the latest.
Iofina’s compound arm is firing on all cylinders, increasing sales and working with customers in sectors as diverse as animal feed and lithium batteries.
Brokers expect strong, sustained growth across the group, suggesting the share price should reach 40p, as production increases and new deals come to fruition
Midas verdict: Iofina shares have performed well but they should continue to rise, as Becker delivers his strategy. Iodine is in demand and Iofina’s technology is cleaner and lower-cost than many rivals. At 29p, the shares remain attractive.
#fiveDealsWidget .dealItemTitle#mobile {display:none} #fiveDealsWidget {display:block; float:left; clear:both; max-width:636px; margin:0; padding:0; line-height:120%; font-size:12px} #fiveDealsWidget div, #fiveDealsWidget a {margin:0; padding:0; line-height:120%; text-decoration: none; font-family:Arial, Helvetica ,sans-serif} #fiveDealsWidget .widgetTitleBox {display:block; float:left; width:100%; background-color:#af1e1e; } #fiveDealsWidget .widgetTitle {color:#fff; text-transform: uppercase; font-size:18px; font-weight:bold; margin:6px 10px 4px 10px; } #fiveDealsWidget a.dealItem {float:left; display:block; width:124px; margin-right:4px; margin-top:5px; background-color: #e3e3e3; min-height:200px;} #fiveDealsWidget a.dealItem#last {margin-right:0} #fiveDealsWidget .dealItemTitle {display:block; margin:10px 5px; color:#000; font-weight:bold} #fiveDealsWidget .dealItemImage, #fiveDealsWidget .dealItemImage img {float:left; display:block; margin:0; padding:0} #fiveDealsWidget .dealItemImage {border:1px solid #ccc} #fiveDealsWidget .dealItemImage img {width:100%; height:auto} #fiveDealsWidget .dealItemdesc {float:left; display:block; color:#004db3; font-weight:bold; margin:5px;} #fiveDealsWidget .dealItemRate {float:left; display:block; color:#000; margin:5px} #fiveDealsWidget .dealFooter {display:block; float:left; width:100%; margin-top:5px; background-color:#e3e3e3 } #fiveDealsWidget .footerText {font-size:10px; margin:10px 10px 10px 10px;} @media (max-width: 635px) { #fiveDealsWidget a.dealItem {width:19%; margin-right:1%} #fiveDealsWidget a.dealItem#last {width:20%} } @media (max-width: 560px) { #fiveDealsWidget #desktop {display:none;} #fiveDealsWidget #mobile {display:block!important} #fiveDealsWidget a.dealItem {background-color: #fff; height:auto; min-height:auto} #fiveDealsWidget a.dealItem {border-bottom:1px solid #ececec; margin-bottom:5px; padding-bottom:10px} #fiveDealsWidget a.dealItem#last {border-bottom:0px solid #ececec; margin-bottom:5px; padding-bottom:0px} #fiveDealsWidget a.dealItem, #fiveDealsWidget a.dealItem#last {width:100%} #fiveDealsWidget .dealItemContent, #fiveDealsWidget .dealItemImage {float:left; display:inline-block} #fiveDealsWidget .dealItemImage {width:35%; margin-right:1%} #fiveDealsWidget .dealItemContent {width:63%} #fiveDealsWidget .dealItemTitle {margin: 0px 5px 5px; font-size:16px} #fiveDealsWidget .dealItemContent .dealItemdesc, #fiveDealsWidget .dealItemContent .dealItemRate {clear:both} }
