29th Dec 2021 08:57
(Alliance News) - Iofina PLC on Wednesday said it will meet its crystalline iodine production target as strong demand continues, leading to a rise in its share price.
Shares in the London-based iodine producer were up 7.6% at 15.33 pence each on Wednesday morning in London.
Iodine said it will meet its projected production target of 260 to 275 metric tonnes of crystalline iodine for the second half of the 2021.
Further details will be provided in an update in January, once numbers have been finalised, Iofina said.
Additionally, the company noted continued strong demand for iodine and iodine derivatives.
The iodine spot price, for instance, increased 25% to USD50 per kilogram since Iofina's third quarter update in October.
The iodine exploration and production firm added that it expects the current pricing levels to be maintained into the first half of 2021 due to "robust" market trends.
Completion of its agreement with brine partners ahead of the development of IO#9 has progressed but was slowed down by the latest Covid 19 spike, the company said.
This pushed the timeline for the execution of an agreement into the first quarter of 2022.
Nonetheless, construction planning is "well-advanced" and the new plant is expected to contribute to iodine production in the third quarter of 2022.
"Whilst the recent spike in Covid-19 has slowed the IO#9 process, we expect to now finalise an agreement in the early first quarter of 2022. We are advanced with our construction planning, so will hit the ground running once we have access to the new site," Chief Executive Tom Becker said.
He added: "The directors believe that the outlook moving into 2022 is certainly encouraging."
By Abby Amoakuh; [email protected]
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