finnCap Research Company Notes - 20 December 2019

Dec 20, 2019 / News

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Sector: Energy

Iofina (IOF) : Corp

Trading update


Key data                              

Share price (p)                  27.1

Target price (p)                35.0

Market cap (£m)                              52.1

Enterprise value (£m)                    58.2


Iofina’s trading update confirms it is executing well on its dual iodine/CBD strategy, with construction of the IO#8 iodine plant and its organic hemp seed manufacturing facility progressing well, alongside encouraging progress from its CBD extraction research. Iodine volume growth into a strengthening market together with the emergence of potential high-margin CBD opportunities sets Iofina up for another record year in 2020. Management is also confident of achieving a debt restructuring solution in H1 2020. We estimate Iofina is trading at 6.4x 2021e EV/EBITDA, which we view as undemanding given the scope for iodine price/CBD related earnings upgrades over that time frame.


Jonathan Wright

020 7220 0543


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