Largo Resources Ltd. (TSX:LGO) announced that it in August it achieved a new monthly production record at its Brazil-based Maracas Menchen mine. In total, it put out 888 tonnes of vanadium pentoxide that month, up from the previous record of 828 tonnes.
As quoted in the press release:
In addition to a new monthly record, Largo is also pleased to announce that it has achieved a new weekly production record in August of 215 tonnes. The production in August was 11% above the plant’s nameplate capacity and is the result of our operating team’s efforts to enhance efficiencies and to continually improve production.
Concurrently with these new production records, the price range of V2O5 for the week ended September 1, 2017 increased to US$11.00/lb to US$11.25/lb (Source: Metal Bulletin), which represents an approximate 89% increase over the US$5.81 average price for fiscal Q2 2017 and a new 5-year high.
Mark A. Smith, CEO of Largo, commented:
Largo anticipates that as vanadium prices surpass $11.00/lb, representing a 5-year high, its operational performance and low cost production will continue to deliver record breaking results. Largo’s continuing and successful production track record coupled with Largo’s ability to produce vanadium at a low cost demonstrates Largo’s emergence as a key player in the vanadium industry. We believe that Largo’s position as one of the only pure-play vanadium producers uniquely positions Largo to benefit from the current realities of the vanadium market, including the current increase in vanadium prices.