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Largo Resources Announces Second Quarter 2021 Production and Sales Results; Positive Vanadium Demand Expected to Continue in H2 2021
TORONTO / Jul 21, 2021 / Business Wire / Largo Resources Ltd. ("Largo" or the "Company") (TSX: LGO) (NASDAQ: LGO) announces quarterly production of 3,070 tonnes
About this update from Largo Inc.
[{"type":"text","content":"TORONTO / Jul 21, 2021 / Business Wire / Largo Resources Ltd. (\"Largo\" or the \"Company\") (TSX: LGO) (NASDAQ: LGO) announces quarterly production of 3,070 tonnes (6.8 million lbs1) of vanadium pentoxide (“V2O5”) and sales of 3,027 tonnes of V2O5 equivalent from its Maracás Menchen Mine in Q2 2021. Paulo Misk, President and Chief Executive Officer of Largo, stated: “I am very encouraged by the ongoing development of our clean energy division as highlighted by the recent signing of our first milestone battery sales contract with a world-class partner, EGPE. We believe this further validates the Company’s innovative value proposition for energy storage customers and underpins a significant growth opportunity for Largo.” He continued: “In Q2 2021, the Company concluded the commissioning and ramp up activities associated with its kiln and cooler upgrades, including improvements of the mining, crushing and milling circuits to support a new nameplate production capacity of 1,100 tonnes of V2O5 per month. We expect to reach the new nameplate capacity in Q3 2021. Following these activities, global recoveries2 began to improve in Q2 2021 and the Company achieved 82.2% in June. Looking ahead, we expect to achieve our 2021 production and sales guidance through a rigorous operating and sales program during the remainder of the year. “We are also pleased to report that commissioning of the Company’s V2O3 processing plant has begun and production is expected by the end of the third quarter. V2O3 is an important high purity material required in the manufacturing of master alloys, chemical products and electrolyte used in VRFBs. The addition of this product should increase the Company’s high purity market share as this sector gradually recovers and will support the development of our clean energy division with its use in the manufacturing of electrolyte.” He concluded: “Vanadium prices continued to edge higher in Q2 2021 following limited material availability and increased demand from the steel industry. During Q2 2021, the average European Fastmarkets Metalbulletin price per lb of V2O5 was US$8.19, representing an increase of 16% over Q1 2021 and 33% above the average price seen in Q2 2020. We expect vanadium prices to remain elevated and well above long-term averages throughout the second half of 2021.” A summary of the Company’s Q2 2021 p...