Iofina updates market on 'exceptional' year

Iodine and specialty chemicals company Iofina updated the market on what it called an “exceptional year” on Thursday, in which it produced a record volume of crystalline iodine and continued to execute on its commitment to growth and increased profitability.

The AIM-traded firm said full-year 2019 crystalline iodine production totalled 602.7 metric tonnes, with 316 tonnes produced in the second half, in line with its 305 to 325 tonne half-year expectations.

It began construction of its new plant, ‘IO#8’, which was currently on time and within budget.

Iofina said first half production was currently forecast at between 315 and 345 tonnes of crystalline iodine.

The firm said it was continuing its exploration program, and progressing towards determination of the next plant site for the expansion of iodine production.

Iodine spot prices rose over 20% during the year, to between $32 and $37 per kilogram.

At its Iofina Chemical operation, the company reported “record sales” of crystalline iodine, mostly spot to established, preferred customers, and some contracted.

Price increases for iodine-derivative products were said to have “lagged somewhat” behind those for spot sales, while non-iodine product sales were said to have been strong.

Plant improvements were underway to improve process efficiency, and to maximise production output.

The firm reported the successful hiring of key personnel in 2019, including production, engineering and quality managers.

At IofinaEX, the board reported that hemp had been purchased for development, and that it had successfully isolated its first cannabidiol (CBD) oil product from hemp, and was now continuing its development work.

It made a strategic investment into Organic Vines OP during the year, which is a hemp seed growing operation in Colorado.

The company was also working to develop CBD and hemp opportunities in Belize and Central America.

“I am delighted to report the group's exceptional performance in 2019, in which we achieved record iodine production whilst also executing on our expansion at the right time, when iodine prices are continuing to build momentum,” said president and chief executive officer Tom Becker.

“With the forthcoming addition of IO#8 we continue to look ahead, and will seek to expand our production capabilities beyond IO#8 this year.

“Meanwhile, we are working diligently on debt restructure solutions and are confident we will have a firm plan in place by the time we release our full year results in the second quarter of 2020,” Dr Becker added.

At 1629 GMT, shares in Iofina were down 3.21% at 25.6p.