Iofina sees strong sales and higher iodine prices

Iofina Plc (LON:IOF) highlighted strong sales and slightly higher iodine prices as it updated investors on its first half activities.

The company, in a statement, said pointed in particular to the demand for its iodine and halogen derivative products as customer markets reopened.

Spot iodine prices improved slightly to between US$35 and US$37 per kilogram, it noted.

“The iodine market is seeing an excellent recovery in line with the rapidly accelerating global economic recovery as we begin to emerge from the challenging COVID-19 period,” said chief executive Dr Tom Becker.

“Demand is strong and prices are back at pre-pandemic levels.”

Iofina produced some 249.4 tons of crystalline iodine in the first half in line with its forecasts (of 250 tons). Becker commented that production volumes remain lower than normal though current capacity is sufficient to meet demand.

The company said that its expansion plans are progressing well and that the IO#9 facility is expected to start construction by year end.

“We are expecting to begin construction of this new plant by the end of the year,” Becker added.

“This will not only reduce any risk from reduced brine supply seen by any of our plants but also ensure we are well positioned to meet the rising demand we are seeing globally for iodine and its derivative products.”

The company continues to meet its debt obligations and is in an excellent position to continue with our prudent growth strategy. I look forward to updating the market further on our expansion as well as provide a fuller update on the Period at our interim results.”

Story by ProactiveInvestors