TSX-listed Largo Resources achieved record yearly production of 10 577 t of vanadium pentoxide (V2O5) and the lowest yearly cash operating costs, excluding royalties, achieved to date of $2.95/lb of V2O5 in the year ended December 31.
The company also recorded a net loss of $36.2-million in 2019, although this was largely owing to lower vanadium prices and the re-measurement of trade receivables and payables as part of an offtake agreement that expires on April 30.
The company’s profitability was impacted on in the fourth quarter of the year, president and CEO Paulo Misk said on Monday, noting that this was because of lower vanadium prices and largely owing to the re-measurement, that amounted to $137.3-million.
Following the expiration of the offtake agreement next month, Largo noted that it remains “focused on maximising value through its sales and marketing business”, which includes a focus on high-purity vanadium sales with price premiums.
According to Misk, the company is about 90% committed on its yearly guided sales for 2020.
On the operational front, Largo performed well and achieved cash operating costs, excluding royalties, in addition to setting a new V2O5 production record of over 10 500 t.
Largo’s board of directors has also approved the construction of a V2O5 processing plant at the Maracás Menchen mine, in Brazil.
Once completed, the company expects to increase its premium yielding high-purity sales in the vanadium/titanium/aluminium alloying market which is required for aerospace manufacturing, chemical industry and vanadium electrolytes used for vanadium redox flow batteries.
Commenting on the rapidly developing impacts of the Covid-19 pandemic, Misk said Largo would “take all possible actions” to help minimise the impact on the company and its people.
To date, there has been no impact on the company’s production or on its shipment of product out of Maracás.
No employees or contractors have tested positive for the virus.
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