Iofina makes steady progress on iodine plant rollout

Shares in Iofina (LON:IOF) rallied today on news that two iodine extraction plants (IO4 and IO5) should be in production from the beginning of Q2 onwards. The build for IO4 has been completed and the plant handed over to Iofina staff for hydro and automation testing before accepting brine. As with previous plants, there will then follow a period of optmisation. The build of IO5 should be completed in March. This news is broadly in line with the operational update that was provided at the end of January, although there have been some minor delays due to the extreme weather conditions during the period.

I remain confident that IOF is a solid growth share with excellent prospects and that the current share price simply does not reflect the stage of growth this company is at. Investor sentiment has clearly been damaged by a combination of missed expectations, delayed plant builds and uncertainty over the water permit application. Nonetheless, the business continues to progress and sooner or later the share price will reflect this growth. I believe that patience will be rewarded as the story and business plan unfold, even if that plan is slower coming to fruition than originally hoped. 

Disclosure – I own shares in IOF