Iofina PLC (AIM:IOF, OTC:IOFNF), specialists in the exploration and production of iodine and manufacturers of specialty chemical products, has said the company continued to perform well during the fourth quarter of 2022.
During the period, the company said Iofina Resources produced 139 metric tonnes (MT) of crystalline iodine from its IOsorb iodine plants in Oklahoma, taking second-half (H2) 2022 production to 282 MT, which was ahead of the H2 upper forecast range of 255-275 MT. In total, Iofina Resources produced 516 MT of crystalline iodine in 2022.
Demand for the company's products remained strong in the period, Iofina added, particularly for crystalline iodine, its iodine-based biocide and its fluorine-based etchant gas.
The iodine spot price moved up from $50/kg at the start of the year and remained at approximately $70/kg towards the end of 2022. The company said it expects prices to stay at these levels as it moves through the early part of 2023, with global supply continuing to be tight.
Iofina said its sales channels remain robust which is encouraging as the company executes its iodine production expansion plans.
In a statement, Iofina president and CEO Dr Tom Becker commented: "Iofina had a strong end to 2022, with H2 iodine production surpassing our initial target and product sales remaining robust. As such, the company is pleased with the expected outturn of its business in 2022.
"Looking ahead, with brine water supplies to our plants consistent and IO#9 on track for completion and start-up in Q2 2023, Iofina Resources will have the capacity to deliver a significant increase in crystalline iodine production going forward. Market dynamics for raw Iodine remain very favourable and coupled with the demand for our specialty products, the board of Iofina is confident in the current outlook for the new year."
Since signing a partnership agreement for IO#9 during Q4 2022, Iofina Resources has worked quickly to bring materials and the construction team on-site to commence construction, the company said, confirming that work is progressing as anticipated and the new plant is on track with an expected start-up later in the second quarter of 2023.
The company said it is also continuing to work on other growth projects and is in advanced dialogue with potential oil and gas partners to supply brine water for its next plant, IO#10. Negotiations continue to progress positively in line with Iofina's commitment to achieve further expansion of iodine production capacity in the short term. The company said it will provide a further update on developments in due course.
Looking ahead, Iofina Resources is expected to produce 235-250 MT of crystalline iodine during the first half (H1) of 2023, solely from its five existing plants (H1 2022: 234 MT). The company noted that H1 Iodine production has historically always been slightly lower compared to H2, and is primarily due to much lower temperatures in the winter months.
On the current timetable, IO#9 is expected to make an additional small contribution in H1, which the company said it will update on once the plant is operational and production commences. Iofina anticipates the new plant will produce 100-150 MT of crystalline iodine per annum.