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Iofina enjoys margin boost from high iodine prices

Last updated: 03:00 16 Jan 2024 EST, First published: 07:47 16 Apr 2021 EDT

Snapshot

  • Iofina has strong end to the year; expects growth to continue
  • Profiting from coronavirus: which companies are benefiting, how investors should act
  • Iofina news that the starting gun has been fired on its next growth phase should be "well received" says finnCap
  • Iofina outlook for 2024 "looks very good"
Iofina PLC -

About the company

Iofina PLC is a vertically integrated company that specialises in the production of iodine and the manufacturing of specialty chemical products.

As the second largest producer of iodine in North America, it comprises three USA entities; Iofina Resources, Iofina Chemical and IofinaEX.

How it is doing

15 Jan 2024

Iofina PLC (AIM:IOF, OTC:IOFNF), a specialist in producing iodine from the brine extracted during oil production, reported a significant increase in output during the fourth quarter of 2023.

Production rose by 16% year over year to 160.9 metric tonnes (MT), marking a robust end to the year. This uptick came as the IO#9 plant began operating at an improved rate, but also as the spot price of the element softened by around 5%.

In the second half, total output reached 317.8MT, aligning with Iofina's forecasts and representing a 13% increase over the same period a year earlier.

Looking ahead to the first half of 2024, Iofina Resources projects a production volume of 275MT-295MT, representing a 13% to 22% year-on-year increase.

02 Dec 2023

Dr Tom Becker, CEO of Iofina PLC (AIM:IOF, OTC:IOFNF), spoke with Proactive London's Thomas Warner about the successful ramp-up of their iodine production plant, IO#9, and the plans for further expansion with a new plant, IO#10. He also discussed the company's strategies to enhance sales and marketing efforts and shared insights into the iodine market's current state.

Thomas Warner (TW): Let's start with the update on IO#9. How is it performing?

30 Nov 2023

Iofina PLC (AIM:IOF, OTC:IOFNF) said its newest IOsorb iodine plant in Western Oklahoma is now producing crystalline iodine at the rate expected.

Named IO#9, the production plant has taken longer than expected to ramp up since it was switched on in June 2023, as the company mentioned last month.

Insight: Profiting from coronavirus: which companies are benefiting, how investors...

05 Mar 2020

It’s hard to see the positives with the coronavirus having reached almost 80 countries and notched up death toll of more than 3,000.

But investors are a strange bunch, inoculating themselves from emotions and training themselves to look for investment opportunities during hard times.

What the brokers say

28 Oct 2022

Iofina PLC (AIM:IOF, OTC:IOFNF) news that the starting gun has been fired on its next growth phase, with new brine supply agreements for its latest iodine plant expansion concluded, paving the way for construction to begin should "be well received" according to analysts at finnCap.

The 'house' broker's analysts said: "This will be Iofina’s sixth operating iodine plant; with an anticipated construction time of just six months and an expected capacity of 100-150 MT, it will rapidly and materially boost Iofina’s iodine production and deliver a fast payback on investment."

They noted that the plant will be located in Western Oklahoma, a region of growing brine supply that management intends to develop into a new core area.

What management says

16 Jan 2024

Iofina PLC (AIM:IOF, OTC:IOFNF) CEO Dr Tom Becker speaks to Thomas Warner from Proactive after the iodine producer released a Q4 2023 Corporate Update showing another year-on-year increase in iodine production of around 560 metric tonnes.

Becker attributes the growth to the consistent performance of their plants and the introduction of IO#9 in the latter half of 2023. Although IO9 faced initial challenges, it eventually aligned with the company's production expectations.

Becker discusses mixed results in iodine derivatives, noting that while some performed well, others lagged. He says Iofina adapted by redirecting certain iodine scheduled for derivatives to the market as crystalline iodine. The company is exploring new iodine-based derivatives to enhance their product line.

Iofina outlook for 2024 "looks very good"

Iofina PLC (AIM:IOF, OTC:IOFNF) CEO Dr Tom Becker speaks to Thomas Warner from Proactive after the iodine producer released a Q4 2023 Corporate Update showing another year-on-year increase in iodine production of around 560 metric tonnes. Becker attributes the growth to the consistent...

on 01/16/2024