We achieved record iodine production whilst also executing on our expansion at the right time when iodine prices are continuing to build momentum
CEO Tom Becker
What does the company do?
The company is the second largest producer of iodine in North America and comprises three entities: Iofina Resources, Iofina Chemical and IofinaEX.
The AIM-listed group‘s strategy is to identify, develop, build, own and operate iodine extraction plants based on its well-head extraction technology.
IofinaEX has been set up to produce cannabidiol (CBD), the non-psychoactive ingredient of cannabis.
How’s Iofina performing?
In a January update, the group said iodine production in 2019 had totalled 602.7 tonnes, up from 588.8 tonnes the year before, with 286.7 tonnes produced in the first half of the year and 316 tonnes produced in the second.
Iofina said it expects to keep up the rate of production in the first half of 2020, planning for between 315 and 345 tonnes of crystalline iodine.
Iodine prices rose more than 20% in 2019 while the spot price was generally in the mid-US$30s per kilogram as a result of continuing demand and a tightness in supply that is predicted to lead to further price increases.
Construction of the IO#8 production plant in Oklahoma continues to proceed according to plan and is expected to come online in April or May of 2020.
The group also said it remains confident in the potential of IofinaEX, the new speciality chemical operation focused on the extraction of valuable products such as cannabidiol (CBD), cannabinol and cannabigerol from hemp.
What the CEO says, Tom Becker
“I am delighted to report the group's exceptional performance in 2019, in which we achieved record iodine production whilst also executing on our expansion at the right time when iodine prices are continuing to build momentum,” said president and chief executive Tom Becker in January.
“With the forthcoming addition of IO#8 we continue to look ahead, and will seek to expand our production capabilities beyond IO#8 this year.
"Meanwhile, we are working diligently on debt restructure solutions and are confident we will have a firm plan in place by the time we release our full-year results in Q2 2020," he added.
- Iodine prices continue to move higher
- The construction of a new iodine plant began in September, which should take six to seven months
- The CBD business - although broker finnCap cautions it is “still early days” for the new division. “Iofina continues to refine its process development work and mature its CBD strategy for both the US and international markets,” said analyst Jonathan Wright.
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