Jan. 31 (Bloomberg) -- Solazyme Inc., a producer of renewable oil from algae that last year delayed production at a plant in Brazil, gained the most since going public after saying it’s selling commercial volumes of tailored-oil products from two facilities in Iowa.
Solazyme gained 33 percent to $12.97 at the close in New York, the most since May 27, 2011.
“Truckloads” of product are now shipping from Iowa operations for use in lubricants, metalworking and home and personal care, the South San Francisco, California-based company said in a statement yesterday. In November, Solazyme said it was pushing back the timeline for commercial production of oils at its Moema plant in Brazil into the first quarter.
“Startup problems have hampered many peers, so this news should be a significant trigger,” Rob Stone, an analyst at Cowen & Co., wrote today in a note to investors. He rates Solazyme the equivalent of a buy with a 12-month price target of $14.
Production at the two facilities in Clinton and Galva, Iowa, is expected to increase to 20,000 metric tons a year within the next 12 to 18 months, the company said.
--Editors: Jasmina Kelemen, Will Wade