Iofina Share News (IOF)

(Sharecast News) - Iodine explorer and producer Iofina said in an update on Wednesday that despite cool temperatures and weather-related downtimes, its Iofina Resources division managed to produce 107.1 metric tonnes of crystalline iodine in the first quarter, up 3.3 tonnes year-on-year.

The AIM-traded firm said that during the period, its iodine remained in high demand as it expanded its customer base.

It noted that the iodine spot price remained steady at around $70 per kilogram, with prices expected to stay at those levels until the second half of the year.

The company's sales channels remained "robust", which the board said was encouraging as it executed its production expansion plans.

Iofina said the construction of IO9 was on track to be operational before the end of the second quarter, with the final steps focussed on tower installation, plumbing, electricals, and tying into the partner's brine system.

The firm said it was also in advanced dialogue with potential partners for its growth projects, and its commitment to expanding its iodine production capacity in the short term.

Iofina Resources was expected to produce 235 to 250 metric tonnes of crystalline iodine during the first half from its five existing plants, with IO9 expected to make a small additional contribution in the period.

Once operational, IO9 is expected to produce 100 to 150 tonnes of crystalline iodine per annum.

"It has been a good start to the year in terms of both Iodine production and sales of our products," said president and chief executive officer Dr Tom Becker.

"Importantly, we remain on track to have IO9 operating before the end of June, which is anticipated to boost our iodine production in the second half.

"We are also encouraged by the progress we are making on IO10 in terms of the negotiations we are having with several potential brine partners as we continue to execute our growth plans."

Iofina said it was set to publish its full-year financial results for 2022 in late April.

At 1259 BST, shares in Iofina were up 2.32% at 29.16p.

Reporting by Josh White for Sharecast.com.