Iofina plc (LON:IOF), a leading specialty chemicals company focused on iodine production, has delivered record-breaking production results in 2024, reinforcing its position as a key player in the market. According to Canaccord Genuity’s latest research note, Iofina produced an impressive 634 tons of iodine for the year—a 13% increase from 2023. The firm remains on track for even greater expansion, with production for the first half of 2025 expected to rise between 16% and 29% year-on-year.
Demand Remains Strong
Iodine market conditions remain robust, with prices holding steady above $70/kg. Canaccord Genuity analysts highlight that demand remains particularly strong for antimicrobial IPBC, with sales significantly surpassing 2023 levels. This trend is expected to continue, underpinning Iofina’s growth prospects across multiple end markets.
Future Growth Prospects Look Bright
Iofina’s expansion strategy is progressing well, with its latest iodine plant, IO#10, fully operational. Construction of IO#11 is underway and is expected to come online in Q3 2025, while discussions for IO#12 are advancing positively. Canaccord Genuity forecasts Iofina’s production to reach 775 tons in 2025, reflecting a 23% year-on-year increase, with further growth of over 20% expected in 2026.
By the end of 2026, Iofina is projected to achieve a production run rate close to 1,000 tons per annum, fulfilling its long-term target.
Short-Term Hurdles, Long-Term Strength
Despite the strong operational performance, Iofina faced minor shipment delays at the end of 2024, which caused $2 million in revenue to be recognised in January 2025 instead of December. This adjustment has led to a revised 2024 EBITDA estimate of $7.5 million (previously $8.6 million). However, Canaccord Genuity does not view this as material, noting that “management expect the $1mn EBITDA to be recognised in 2025E, for prudence we have made no change to this year’s forecast.”
Canaccord Genuity Maintains ‘BUY’ Rating
With a solid production outlook and strong iodine demand, Canaccord Genuity reiterates its ‘BUY’ rating on Iofina, maintaining a target price of 37.5p. The report values the stock at 10x and 8x EV/EBITDA for 2025 and 2026, respectively, and sees the company well-positioned to capitalise on further market opportunities.
Final Thoughts
Iofina continues to demonstrate its ability to scale up production while maintaining strong market demand. The successful commissioning of new plants and a positive pricing environment suggest a promising future for the company. While short-term dispatch delays impacted 2024’s final numbers, the long-term growth trajectory remains firmly intact. Investors should watch Iofina closely as it moves towards achieving its ambitious production goals.
