(Alliance News) - Iodine maker Iofina PLC on Friday said it expects prices to rise further in 2020, despite already strong gains this year.
Iofina is currently building a new production facility in Oklahoma, which is on track to begin producing during the first half of 2020.
This comes at a good time, the company said, given the fact the supply of iodine globally "remains tight", meaning it foresees prices rising further next year despite a more than 20% increase in 2019.
Chief Executive Tom Becker said: "We are delighted to report on the excellent progress being made on the construction of IO 8, which will have a similar cost structure to Iofina's current lowest per kilo production cost plants. In addition, we are pleased with this year's production rates, with the final year-end total expected to be a record yearly production volume of iodine for the company.
"As we seek to continue to grow our production capacity next year, we are well positioned to take advantage of the current, positive environment of the iodine market."
Elsewhere, Iofina has been exploring producing cannabis-based products such as CBD oil. It has been exploring opportunities in central America, and said Belize is currently considering legal changes that would mean its hemp meets US regulations.
"IofinaEX is continuing to develop its strategy in the CBD/hemp space, and we look forward to providing further information on the developments that we make within our Kentucky lab, drawing on the expertise of our specialty chemical team," Becker added.
Shares were 1.1% lower on Friday at a price of 26.85 pence each.
By George Collard; georgecollard@alliancenews.com
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Iofina (IOF)