(Sharecast News) - Iodine explorer, producer and speciality chemicals manufacturer Iofina updated the market on its activities in the fourth quarter of 2023 on Monday, as well as its expectations for 2024.
The AIM-traded firm said that in the second half of the fourth quarter, the IO9 plant operated at an improved production rate, leading to a 16% year-on-year increase in crystalline iodine production across its six plants, reaching 160.9 metric tonnes for the quarter.
Total production for the second half of 2023 reached 317.8 metric tonnes, aligning with the company's guidance of being at or slightly below the forecast range of 325 to 350 tonnes.
That represented a significant 13% increase over the production recorded in the second half of 2022, which stood at 282 metric tonnes.
Overall crystalline iodine production in 2023 increased 8% to 559.3 metric tonnes, compared to 2022 production levels of 516 tonnes.
Although iodine spot prices softened by around 5% in the second half, settling in the mid-to-upper sixties in dollars per kilogram, the market fundamentals of the iodine business remained strong, the board said.
Iofina said it expected that the spot price would remain stable in the foreseeable future.
The demand for the company's crystalline iodine remained robust during the final quarter, while sales of iodine derivatives were mixed.
Non-iodine product sales saw significant improvement in the second half, especially a key product used in the semiconductor industry.
Looking ahead to 2024, Iofina said it expected to produce between 275 and 295 metric tonnes of crystalline iodine during the first half, representing a 13% to 22% increase over the first six months of 2023.
Historically, first-half iodine plant production had been lower due to lower temperatures, whereas second-half production benefits from warmer weather.
Construction plans for the IO10 plant had meanwhile progressed positively, with groundwork set to start soon.
The company anticipated that IO10 iodine production would start in the third quarter of 2024.
Negotiations with current and potential new brine supply partners for IO11 were also making headway, with the company exploring options for new iodine production facilities in its core area and other regions.
Iofina Chemical planned to expand its iodine derivatives product range in the first half, responding to strong market demand.
Additionally, the firm said it was aiming to increase crystalline iodine sales to European customers in 2024 through both existing and new relationships.
"In 2023, Iofina continued to execute its growth strategy. Crystalline iodine production improved year-on-year, with an 8% increase compared to 2022," said president and chief executive officer Tom Becker.
"Whilst we acknowledge that IO9 took longer to operate at full capacity than we initially anticipated, we are happy that the plant is now producing at expected levels, and we are on track for the first half of 2024.
"Looking ahead, we are progressing with the construction of IO10 as planned and we continue to make progress towards agreements for IO11 and subsequent future iodine plants in line with the company's commitment to significantly increase its iodine production."
Dr Becker said the company's specialty chemical division Iofina Chemical was continuing to deliver high-quality halo-compounds to the market, and was commercialising a new product for the group while also developing additional new compounds in 2024.
"With continued robust iodine prices, strong demand for the group's crystalline iodine, and the ongoing execution of Iofina's growth plans, the board of Iofina is confident that the momentum built during 2023 will continue to drive progress throughout 2024."
At 1541 GMT, shares in Iofina were down 8.89% at 23.69p.
Reporting by Josh White for Sharecast.com.
Iofina (IOF)