(Sharecast News) - Iodine explorer and producer Iofina reported 60% growth in adjusted EBITDA in its first half on Monday, to $5.9m.
The AIM-traded firm said revenue was ahead 27% year-on-year for the six months ended 30 June, reaching $24.3m.
Cost of sales grew 19% to $16m, alongside a 46% increase in gross profit, which stood at $8.3m.
Iofina's operating profit showed a notable surge of 77% to $4.9m, while profit before tax showed a similar upward trajectory of 80%, bringing the figure to $4.7m.
The company reported a net cash position of $0.2m, which was a significant improvement from the first half of 2022 when it had a net debt of $2.8m.
That was after accounting for capital expenditure of $3.7m, mainly directed towards IO9.
Available cash increased 33% to $6.3m, compared to $4.7m at the end of the second half of 2022.
Iofina said it was confidently positioned to finance its continuing operational investment program due to its robust cash position and available bank finance, including $4m of loans that had yet to be drawn.
Iofina reported production of 242 metric tonnes of crystalline iodine during the first half of the year, which was consistent with its predicted range of 235 to 250 tonnes.
With the contribution from IO9, the company's production for the second half was on track to achieve its 325 to 350 tonne target.
Sales of crystalline iodine saw a massive jump, up 122% to 169 metric tonnes, which mirrored a resurgence in demand following a period of restocking by customers after the impacts of Covid-19 at the end of 2021.
Additionally, average sale prices for crystalline iodine - considered 100% iodine equivalent - rose by 13%, as the price went up from $63.27 in the first half of 2022, to $71.53 in the first six months of 2023.
"The group delivered its best commercial performance for a first half period, supported by the ongoing robust iodine prices and meeting our production targets," said president and chief executive officer Dr Tom Becker.
"In the process we have further improved our cash position even as we constructed a new iodine plant, which provides us with additional capability to fund growth projects.
""The completion of IO9 in June is set to deliver a jump in iodine production during the second half and we are on track to meet our second-half target range of 325 to 350 metric tonnes."
Dr Becker said the company was continuing to successfully advance its growth plans, and expected to finalise an agreement for IO10 shortly.
"Additionally, the planning process of IO#11 is already underway and we look forward to updating the market in due course on this project, along with all business updates throughout the rest of 2023."
At 1043 BST, shares in Iofina were down 1.2% at 29.64p.
Reporting by Josh White for Sharecast.com.
Iofina (IOF)