BEIJING (Asian Metal) 15 Jan 20 – On January 14, Canadian-based Largo Resources Ltd. reported fourth quarter and full year 2019 (FY 2019) production results from its Maracas Menchen Mine highlighted by a new annual production record.
Total production from the Maracas Menchen Mine in FY 2019 was 10,577 tonnes of V2O5, representing an increase of 8% over FY 2018. The Company also produced 3,011 tonnes of V2O5 in Q4 2019, which is an increase of 16% over Q4 2018. Production in Q4 2019 represents the third consecutive quarter-over-quarter of production growth in 2019 and is the strongest quarter of production since commencement of operations in 2014.
Building on the success of our increased name plate capacity in FY 2019, the Company expects total V2O5 production for 2020 will be in the range of 11,750 and 12,250 tonnes which is inclusive of high purity vanadium flake and high purity vanadium powder production.
Largo Resources’ current offtake agreement with Glencore International AG expires on April 30, 2020 and the Company will be responsible for its own sales and distribution directly to end-users from May 2020 onwards. Consequently, the Company anticipates total sales in 2020 will be in the range of 9,500 to 10,000 tonnes, with approximately 2,000 to 2,500 tonnes of its total V2O5 production in 2020 forming part of inventory working capital due to shipping and delivery lead times. The Company’s expected total sales in 2020 will consist of V2O5, high purity V2O5, and ferrovanadium.
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