Iofina PLC (AIM:IOF, OTC:IOFNF) said it will meet its crystalline iodine production target for the second half of 2021, with demand for iodine and its derivatives remaining strong into the year end.
However, the company said an agreement has not yet been made with brine partners ahead of the development of the new IO#9 plant.
The recent surge in Covid-19 cases from the Omicron variant slowed the process and pushed the timeline for the execution of an agreement into “early Q1 2022,” said chief executive Dr Tom Becker, president.
As construction planning was well advanced, Becker said once an agreement is signed Iofina will “will hit the ground running once we have access to the new site”.
Directors expect the new plant to contribute to Iofina's iodine production in the third quarter of 2022.
Meanwhile, the strong demand for iodine continued since the company’s update in mid-October, with a 25% increase in the spot price of iodine since then to US$50 per kg.
In light of these market trends, Iofina’s directors expect the current pricing levels to be maintained into the first half of 2022.
“Importantly, market trends remain firmly in our favour, with demand for iodine and related products strong and the iodine spot price now reaching $50/kg. The directors believe that the outlook moving into 2022 is certainly encouraging,” added Becker.