Date: May 8, 2018
VANCOUVER (miningweekly.com) – A 164% spike in vanadium pentoxide (V2O5) prices over the past 12 months has ensured that Canadian producer Largo Resources swung back into the black for the first three months of 2018, the company reported on Monday.
Based in Toronto, with its flagship Maracás Menchen mine and mill located in Bahia State, Brazil, Largo said on Monday that net profit for the period ended March rose to C$45.8-million, compared with a net loss of C$9.7-million in the comparable first quarter period of 2017.
Profit was mainly driven by a 210% increase in revenues to C$91-million in the period, as the average price of V2O5 rose to about $13.60/lb for the first quarter – up 164% year-over-year compared with an average price of about $5.15/lb for the first quarter of 2017.
Steel production accounts for about 90% of vanadium consumption, and as China is increasing its enforcement of new high-strength rebar standards, this has a positive correlation for vanadium consumption in steel production. In 2017, vanadium held 2% of the energy storage market, but that this share is expected to increase to 20% by 2030.
