Iofina PLC (AIM:IOF, OTC:IOFNF) said it is experiencing robust demand for iodine and iodine derivatives.
It produced 103.8 tonnes of crystalline iodine from its five operating IOsorb plants in Oklahoma in the first quarter of 2022. The iodine producer revealed it is on track to achieve its projection of around 225-240 tonnes of crystalline iodine production in the first half of the year.
Recently, two plants experienced lower than expected water supplies due to saltwater disposal maintenance work undertaken by one of its partners, which will help provide more reliable water flow in the longer term.
This maintenance work is now complete, Iofina disclosed, and the company has since witnessed increased levels of oil and gas workover activity in its core areas from its partners, with reinvestment happening in their fields due to the higher oil prices and stabilised markets.
Iodine prices have continued to rise on the back of the ongoing strong global demand, especially in Asia. Currently, iodine spot prices are US$60/kg and above and the company projects prices will remain robust throughout 2022.
Iofina said it is close to finalising an agreement for the construction of a new IOsorb plant, IO#9, with a new brine supply partner.
Beyond the impact of Covid-19, negotiations were further prolonged due to personnel changes on the partner's side.
In order to minimise supply chain impacts, the effects of inflation and contractor availability, a number of major items have been ordered, contractors secured and plans put in place to execute IO#9. The construction timelines should be similar to the company's performance on IO#7 and IO#8.
The company is also evaluating further sites and partners for future iodine plants.