LONDON (ShareCast) - (Sharecast News) - Iodine and specialty chemicals manufacturer Iofina updated the market on its trading on Wednesday, reporting that it was set to meet its second half crystalline iodine production target of 260 to 275 metric tonnes, although it did flag a Covid-related delay to the IO9 project.
The AIM-traded firm said it would provide further details in an update in January, once numbers were finalised.

Additionally, it said demand for iodine and iodine derivatives remained strong, adding that in recent weeks the iodine spot price had continued to climb, reaching $50 per kilogram, up 25% since its third quarter update in October.

In light of what were proving to be "robust" market trends, the company's board said it expected the current pricing levels to be maintained into the first half of 2022.

Finally, Iofina said completion of the agreement with brine partners ahead of the development of IO9 had progressed since its October update, but said the latest spike in Covid-19 infections had caused the process to slow, pushing the timeline for the execution of an agreement into the first quarter of 2022.

Construction planning was said to be "well advanced" in order to be ready to begin construction as quickly as possible, once an agreement was signed.

Despite the delay, the board said it expected the new plant to contribute to Iofina's iodine production in the third quarter of 2022.

"Whilst the recent spike in Covid-19 has slowed the IO9 process, we expect to now finalise an agreement early in the first quarter of 2022," said president and chief executive officer Tom Becker.

"We are advanced with our construction planning, so will hit the ground running once we have access to the new site."

Dr Becker said market trends remained "firmly" in the company's favour, with demand for iodine and related products strong, alongside the iodine spot price.

"The directors believe that the outlook moving into 2022 is certainly encouraging."

At 1105 GMT, shares in Iofina were up 8.8% at 15.5p.

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