Largo Resources (TSX: LGO) (NASDAQ: LGO) today announced that total production from the Maracás Menchen mine in Brazil was 3,070 tonnes of V2O5 in Q2 2021, representing a 20% increase over Q2 2020 and a 55% increase over Q1 2021.
V2O5 production was 1,092 tonnes in April, with 1,075 tonnes being produced in May and 903 tonnes in June. Lower production seen in June was largely due to a reduction in the total ore mined as a result of the company’s transition to a new mining contractor. The full transition was completed in Q2 2021.
The company said that it has initiated the commissioning of vanadium trioxide (“V2O3”) processing plant and that it maintains 2021 production, sales and cost guidance.
More importantly, Largo pointed out that strong vanadium demand continues as tight vanadium availability coupled with strong demand has led to continued price increases since the start of 2021.
Additionally, Largo noted that it has entered into first battery sales contract with Enel Green Power España for a VCHARGE± system, and that advanced discussions with additional energy storage customers are ongoing.
President and CEO Paulo Misk added, “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.”
Largo Resources is vertically integrated vanadium company. It services multiple vanadium market applications through the supply of its VPURE™ and VPURE+™ products, from one of the world’s highest-grade vanadium deposits at the company’s Maracás Menchen mine located in Brazil. Largo is also focused on the advancement of renewable energy storage solutions through its world-class VCHARGE± vanadium redox flow battery technology.
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