Vanadium doesn't get quite as much attention as other critical and battery metals, but it should.
Resistant to breakdown from both acid and salt, it adds considerable strength, heat resistance and toughness to steel when alloyed. Unsurprisingly, these characteristics have made vanadium a critical mineral for defence applications, particularly as vanadium need only be present in small amounts to impart its benefits. For the past twenty years, demand for the metal in the steel sector has steadily increased. With the recent push for clean energy and net-zero emissions, that demand is set to rise, not only from the steel market but from the battery market.
Australian Vanadium Limited (ASX:AVL, FRA:JT71, OTCQB:ATVVF), which holds one of the most advanced high-grade vanadium deposits in the world, has placed significant focus on developing its Australian Vanadium Project, a high-grade vanadium, titanium and iron resource situated roughly 43 kilometres south of the mining town of Meekatharra in Western Australia.
Vanadium's potential goes well beyond construction steel. The metal is also used extensively in multiple industries, including aerospace, defence and as a chemical catalyst. What's most notable, however, is vanadium's status as a battery metal, specifically one suited for long-term, large-scale energy storage.
The vanadium flow battery (VFB) was first invented in 1984 at the University of New South Wales in Australia. Early VFBs had to be the size of approximately one to two basketball courts to adequately perform, but the technology has been refined over the years since. Today’s VFBs are only a third of the size of their colossal predecessors, with a significantly higher energy capacity.
As businesses and governments seek battery storage for large-scale use cases, demand is expected to increase further, with the VFB market accounting for more than 10 percent of all vanadium production by the end of 2023. Demand for vanadium is expected to double by 2032, of which 90 percent will be driven by VFBs.
AVL is also working to cultivate Australia's burgeoning VFB market through its wholly owned subsidiary VSUN Energy. VSUN Energy's current projects include the installation of a VFB to power an industrial chlorinator, as a standalone power system for a mine process water pump at a major nickel project, and to power the systems at an orchard in Victoria. VSUN Energy is also consulting with several major mining clients.
The major component of a VFB is vanadium electrolyte. This solution of vanadium mixed with acid and water will be manufactured by AVL at a facility being constructed in the Perth region.
Both VSUN Energy and the electrolyte manufacturing facility are part of AVL's vertically integrated strategy, through which it intends to support every stage of VFB production. This will give it the ability to not only produce the world's highest-quality vanadium but also tailor that vanadium to its customers’ needs.
In 2023, AVL and Technology Metals Australia Limited (ASX:TMT) agreed to merge via a proposed scheme of arrangement under which AVL will acquire 100 percent of the TMT shares on issue. The merger has since been completed accelerating the company's journey to become a global leader in the vanadium supply chain. The transaction consolidated two adjoining projects across one orebody. Work is underway focussing on concentrate quality and coproduct optimisation to unlock reduced capital and operating costs.
Located in Western Australia's Murchison Province, the Australian Vanadium Project will consist of an open cut mine, crushing, milling and beneficiation south of Meekatharra and a processing plant near the port city of Geraldton.
AVL has appointed engineering group Primero Group to construct its vanadium electrolyte manufacturing facility in Western Australia. The facility is designed to produce up to 33 MWh per year of vanadium flow battery high-purity electrolyte. The Australian Government’s grant of $3.69 million will co-fund the commercial vanadium electrolyte facility development.
Equipment for vanadium electrolyte production
Situated in Perth, the plant leverages proven technology sourced from US Vanadium LLC. Construction of the plant is underway and electrolyte will be available for battery supply in 2024.
As one of the world's most advanced in-development vanadium projects, the AVL Project has national strategic significance to Australia's critical mineral supply chains. The project has been recognised by both the Australian federal government and the Western Australian government, receiving multiple grants for a combined total of over $52.69 million.
The AVL deposit consists of a basal massive magnetite zone overlaid by five lower-grade mineralised magnetite-banded gabbro units, each of which is between 5 and 30 metres thick. Vanadium mineralisation can be found in both the massive magnetite horizon and the lower-grade gabbro horizons. The deposit is further divided into kilometre-scale blocks by a series of regional scale faults; the blocks show little sign of internal deformation and strong consistency in layering.
In late April 2023, AVL's processing plant site rezoning was approved by the city of Greater Geraldton, pushing plant one step closer to commencing construction. Once completed, the plant along with the mine will provide high-purity vanadium oxide and an iron-titanium co-product.
AVL could commence construction of its Australian Vanadium Project in 2024, targeting production by late 2025 or early 2026. Profiled on WA Investments, the project is seeking an investment value of more than $500 million to start building the project including an open-pit mine near Meekatharra and a processing plant near Geraldton.
Cliff Lawrenson has more than 10 years of experience as a non-executive chair and non-executive director in both public and private companies. He is currently non-executive chair of Paladin Energy Ltd (ASX:PDN) and Caspin Resources (ASX:CPN) and non-executive chair of privately owned Pacific Energy Limited and Onsite Rental Group.
Lawrenson was managing director of Atlas Iron Ltd from 2017 and led the company to its acquisition by Hancock Prospecting Pty Ltd. Prior to Atlas Iron, Lawrenson served as managing director of a number of ASX-listed companies in the mining and mining services sectors. Lawrenson was also a senior executive of CMS Energy Corporation in the United States of America and Singapore, preceded by an investment banking career.
Daniel Harris is a vanadium industry veteran and has an understanding of the resource sector from both a technical and financial perspective. He is currently non-executive director of US Vanadium LLC, Queensland Energy & Minerals (ASX:QEM) and Flinders Mines (ASX:FMS). He is an advisory board member and vanadium consultant for Blackrock Metals.
Previous roles include interim CEO and managing director at Atlas Iron; chief executive & operating officer at Atlantic; vice-president and head of vanadium assets at Evraz Group; managing director at Vametco Alloys; general manager of vanadium operations at Strategic Minerals Corp and acting as an independent technical and executive consultant to GSA Environmental Limited in the United Kingdom.
Miriam Stanborough is a chemical engineer with over 20 years of experience in the mineral processing industry across a range of commodities. She has held senior roles at Monadelphous, Iluka Resources, Alcoa and WMC Resources. Her skill base spans innovation and technology, technical development, production management, project management, business improvement and people and culture.
Stanborough is currently a non-executive director of Pilbara Minerals Limited (ASX:PLS), BCI Minerals Limited (ASX:BCI), chair of the Minerals Research Institute of Western Australia (MRIWA), deputy chair of the Northern Agricultural Catchments Council (NACC), and a director of Scouts WA.
Peter Watson is a chemical engineer with 40 years of experience in senior technical, project and management roles in addition to corporate experience running ASX-listed companies. He has significant board-level experience, particularly regarding safety, governance, financial reporting, risk management and strategy.
Watson is currently a non-executive director of Paladin Energy Ltd (ASX:PDN), New Century Resources (ASX:NCZ) and Strandline Resources Limited (ASX:STA).
Anna Sudlow is a corporate finance executive with experience in the mining and resources sectors across a range of commodities and jurisdictions. She holds a Bachelor of Commerce, is a certified practising accountant (CPA) and holds a Master of Business Administration (MBA). Sudlow has held senior roles at Woodside Energy and Paladin Energy and has experience in strategy, capital management and funding, commercial analysis, business development, risk and financial reporting and governance. Sudlow is currently the CFO of Paladin Energy, (ASX:PDN), an Australian-listed uranium company on the S&P/ASX 200 Index.
Graham Arvidson has 18 years of experience in the minerals sector spanning feasibility, evaluation, successful development and operation of mineral assets globally and across a broad range of commodities including deep experience in vanadium, lithium, nickel and other future-focused battery metals.
Arvidson has proven project development expertise, a deep Western Australian project development network specific to mining, commercial acumen borne of managing contracts from both the client and contractor side and extensive project management experience in tendering, negotiation, conforming and managing O&M, EPC, EPCM, EPC-O and BOO forms of project delivery.
Todd Richardson BSc ChE MBA is an expert in vanadium process design, commissioning and operations with over 20 years’ experience in vanadium. He has an extensive background in operations management and technical services both in the USA and Australia in all phases of plant operation – process design through commissioning, ramp up and operation. Richardson leads the development of AVL’s world-class vanadium project.
Tom Plant is a seasoned chartered accountant and finance executive with almost 30 years of experience in various corporate and commercial roles. He has a strong background in debt and equity funding solutions, investment evaluation and corporate transactions. Plant recently served as interim CFO at Leo Lithium, which developed the Goulamina Lithium Project in Mali. Prior to that, he was the CFO at Firefinch and spent 10 years at global mineral sands and rare earths producer Iluka Resources. He held various positions in investment banking and professional services with Macquarie Group, Dresdner Kleinwort Wasserstein and Arthur Andersen.
Neville Bassett is a chartered accountant operating his own corporate consulting business, specializing in the area of corporate, financial and management advisory services. Bassett has been involved with numerous public company listings and capital raisings.
His involvement in the corporate arena has also taken in mergers and acquisitions and includes significant knowledge and exposure to the Australian financial markets.
Bassett has a wealth of experience in matters pertaining to the Corporations Act, ASX listing requirements, corporate taxation and finance. He is a director or company secretary of a number of public and private companies.
Louis Mostert has over 20 years of experience in project contracting and finance, corporate advisory, mergers and acquisitions, insurance management, dispute resolution, work health and safety, employment and industrial relations, intellectual property, corporate governance and compliance.
Mostert graduated from the University of Western Australia with a Bachelor of Engineering (Hons) and a Bachelor of Laws (Hons) and has a Diploma of Applied Corporate Governance from the Governance Institute of Australia. He is admitted as a barrister and solicitor of the Supreme Court of Western Australia, a fellow of the Chartered Institute of Secretaries, a fellow of the Governance Institute of Australia and a member of the Institute of Company Directors.
Australian Vanadium (ASX:AVL, FRA:JT71, OTC:ATVVF), FRA:JT71, OTC:ATVVF) holds one of the most advanced high-grade vanadium deposits in the world and now focuses significantly on developing its Australian Vanadium project, a high-grade vanadium, titanium and iron resource situated roughly 43 kilometers south of the mining town of Meekatharra in Western Australia.
The company's wholly-owned subsidiary VSUN Energy has current projects including the installation of a VRFB to power an industrial chlorinator, as a standalone power system for a bore pump at a major nickel project, and to power the systems at an orchard in Victoria. VSUN Energy is also consulting with several major mining clients as the demand for vanadium is expected to double by 2032, with 90 percent of this demand driven by VRFBs.
The major component of a VRFB is vanadium electrolyte. This solution of vanadium mixed with acid and water will be manufactured by AVL at a facility being constructed in the Perth region.
Both VSUN Energy and the AVL are part of Australian Vanadium's vertically integrated strategy, through which it intends to support every stage of VRFB production. This will, the company maintains, give it the ability to not only produce the world's highest-quality vanadium, but also tailor that vanadium to its customers’ needs.
This Australian Vanadium profile is part of a paid investor education campaign.*
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February 14th
| Presentation | Ticker(s) |
| Deep Yellow Ltd. | OTCQX: DYLLF | ASX: DYL |
| Madison Metals Inc. | OTCQB: MMTLF | CSE: GREN |
| Blue Sky Uranium Corp. | OTCQB: BKUCF | TSXV: BSK |
| Kraken Energy Corp. | OTCQB: UUSAF | CSE: UUSA |
| Fission Uranium Corp. | OTCQX: FCUUF | TSX: FCU |
| Peninsula Energy Ltd. | OTCQB: PENMF | ASX: PEN |
| Keynote Presentation: The Outlook for Vanadium Supply/Demand Projections and Analysis Terry Perles, Secretary of Board of Directors US Vanadium | |
| Energy Fuels Inc. | NYSE American: UUUU | TSX: EFR |
| Largo Physical Vanadium Corp. | TSXV: VAND |
| Currie Rose Resources Inc. | Pink: CUIRF | TSXV: CUI |
| Phenom Resources Corp. | OTCQX: PHNMF | TSXV: PHNM |
| Australian Vanadium Limited | OTCQB: ATVVF | ASX: AVL |
February 15th
| Presentation | Ticker(s) |
| Vision Lithium Inc. | OTCQB: ABEPF | TSXV: VLI |
| CleanTech Lithium PLC | OTCQB: CTLHF |AIM: CTL |
| Collective Mining Ltd. | OTCQX: CNLMF | TSXV: CNL |
| Precipitate Gold Corp. | OTCQB: PREIF | TSXV: PRG |
| Golden Arrow Resource Corp. | OTCQB: GARWF | TSXV: GRG |
| Metallic Minerals Corp. | OTCQB: MMNGF | TSXV: MMG |
| Faraday Copper Corp. | OTCQX: CPPKF | TSX: FDY |
| Avalon Advanced Materials Inc. | OTCQB: AVLNF | TSX: AVL |
| Sun Summit Minerals Corp. | OTCQB: SMREF | TSXV: SMN |
| Wealth Minerals Ltd. | OTCQB: WMLLF | TSXV: WML |
| Southern Silver Exploration Corp. | OTCQX: SSVFF | TSXV: SSV |
| Pacific Ridge Exploration Ltd. | OTCQB: PEXZF | TSXV: PEX |
February 16th
| Presentation | Ticker(s) |
| Guanajuato Silver Co Ltd. | OTCQX: GSVRF | TSXV: GSVR |
| Doré Copper Mining Corp. | OTCQX: DRCMF | TSXV: DCMC |
| Amex Exploration Inc. | OTCQX: AMXEF | TSXV: AMX |
| Barksdale Resources Corp. | OTCQX: BRKCF | TSXV: BRO |
| Grounded Lithium Corp. | OTCQB: GRDAF | TSXV: GRD |
| Giga Metals | OTCQX: HNCKF | TSXV: GIGA |
| Lavras Gold Corp. | OTCQB: LGCFF | TSXV: LGC |
| Century Lithium Corp. | OTCQX: CYDVF | TSXV: LCE |
| Power Nickel Inc. | OTCQB: PNPNF | TSXV: PNPN |
| O3 Mining Inc | OTCQX: OIIIF | TSXV: OIII |
| Outcrop Silver & Gold Corp. | OTCQX: OCGSF | TSXV: OCG |
| Empress Royalty Corp. | OTCQX: EMPYF | TSX-V: EMPR |
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Providing a real-time investor engagement solution, VIC is specifically designed to offer companies more efficient investor access. Replicating the components of an on-site investor conference, VIC offers companies enhanced capabilities to connect with investors, schedule targeted one-on-one meetings and enhance their presentations with dynamic video content. Accelerating the next level of investor engagement, Virtual Investor Conferences delivers leading investor communications to a global network of retail and institutional investors.
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KEY POINTS
CEO, Graham Arvidson, comments, “AVL’s ability to produce 99.9% ultra-high purity vanadium pentoxide, in addition to our 99.5% standard high purity vanadium pentoxide, allows us to further strengthen our competitive advantage in specialised markets in which premium products attract a higher value.
“Our distinct advantage as a business continues to be our outstanding technical and economic vanadium processing acumen and I commend the team for the work undertaken to create and substantiate a new pathway for additional value creation. Our conviction remains that vanadium producers who can achieve the highest quality vanadium oxides will stand above the rest and command the greatest and most enduring returns. In addition to our proposed world-class vanadium project, our lowest quartile unit cost competitiveness strategy and our focus on product quality will provide further long-term competitive advantages to the Company and superior investor return.
“We have been pleased to work with the team at ANSTO and for the support that the Australian Government has provided us in achieving this milestone. Adding value to vanadium through downstream processing in Australia aligns with the Federal Government’s Critical Minerals Strategy 2023-2030 and helps to keep the value of Australia’s minerals in the country as we transition to a net zero future.”
The work undertaken to achieve ultra-high purity vanadium pentoxide was partly funded through a $3.69 million Australian Government Modern Manufacturing Initiative Translation grant under the National Manufacturing Priority Roadmap.2
AVL worked in conjunction with Australia's Nuclear Science and Technology Organisation (ANSTO) in Sydney to develop a feasible processing route. The pilot for producing ultra-high purity vanadium pentoxide is the culmination of two years of work, exploring the most economic method for producing this product. The pilot was designed and operated to simulate processing of a stream diverted from the leach circuit developed in the AVL Bankable Feasibility Study (BFS) flowsheet.3 This concept allows for easy integration of an ultra-high purity process, in addition to the Company’s high purity process, that can be scaled to match ultra-high purity demand.
Figure 1 - AVL's Metallurgist Greg O'Connor alongside staff from ANSTO at the pilot facility
The feed for the pilot was generated during AVL’s pilot beneficiation,4 pyrometallurgy5 and hydrometallurgy6 programs, conducted as a part of the BFS work undertaken in 2021. The feed materials for this sequence of pilot programs comprised two composites of drill core, designed to be indicative of the average first five years of production and life of mine production.7
Click here for the full ASX Release
This article includes content from Australian Vanadium, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
All dollar amounts expressed are in thousands of U.S. dollars unless otherwise indicated.
Q4, Full Year 2023 and Other Highlights
Vanadium Market Update 4
Largo Inc. (" Largo " or the " Company ") ( TSX: LGO ) ( NASDAQ: LGO ) today released financial and operating results for the three and twelve months ended December 31, 2023. The Company reported annual vanadium pentoxide (" V 2 O 5 ") equivalent sales of 10,396 tonnes at a cash operating cost excluding royalties per pound 1 sold of $5.30.
Daniel Tellechea, Interim CEO and Director of Largo, stated: "The Company's financial results continued to be adversely affected by lower vanadium prices as highlighted by a sharp decline in the European V 2 O 5 price of 22% in Q4 2023 compared to Q4 2022. We remain committed to achieving greater levels of operational efficiency at the Maracás Menchen Mine in order to meet production and sales targets improve cash flow going forward."
He continued: "A number of notable achievements were made by the Company during 2023, including the successful construction and commissioning of a new ilmenite concentration plant. We continue with the ramp-up of production at this facility, further diversifying our revenue stream from our existing vanadium operations. Largo's exploration efforts surrounding the Maracás Menchen Mine have become an increasingly important part of our story over the last few quarters, and we continue to advance our efforts in this area. Following our recent announcement on our review and evaluation of strategic alternatives to unlock and fully maximize the value of LCE, we look forward to continuing discussions with Stryten over the coming weeks."
He concluded: "While vanadium appears to have very promising long-term fundamentals, the Company remains solely focused on reducing costs and meeting its production and sales targets to withstand the current period of low vanadium prices."
Financial and Operating Results – Highlights
(thousands of U.S. dollars, except as otherwise stated) | Three months ended | Year ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Revenues | 44,170 | 47,501 | 198,684 | 229,251 |
Operating costs | (43,218) | (44,455) | (174,758) | (169,719) |
Net income (loss) | (13,301) | (15,636) | (32,358) | (2,226) |
Basic earnings (loss) per share | (0.21) | (0.24) | (0.51) | (0.03) |
Adjusted EBITDA 2 | 1,385 | (3,680) | 12,127 | 41,583 |
Cash (used) provided before working capital items | (2,364) | (14,055) | 5,267 | 21,424 |
Cash operating costs excl. royalties 5 ($/lb) | 5.44 | 5.15 | 5.30 | 4.57 |
Cash | 42,714 | 54,471 | 42,714 | 54,471 |
Debt | 75,000 | 40,000 | 75,000 | 40,000 |
Total mined – dry basis (tonnes) | 3,490,711 | 2,737,149 | 14,864,394 | 10,517,210 |
Total ore mined (tonnes) | 473,958 | 326,552 | 1,752,982 | 1,359,927 |
Effective grade 6 of ore milled (%) | 1.03 | 1.06 | 1.04 | 1.26 |
V 2 O 5 equivalent produced (tonnes) | 2,768 | 2,004 | 9,681 | 10,436 |
Q4 & Full Year 2023 Notes and Other Highlights
The information provided within this release should be read in conjunction with Largo's annual consolidated financial statements for the years ended December 31, 2023 and 2022 and its management's discussion and analysis for the year ended December 31, 2023 which are available on our website at www.largoinc.com or on the Company's respective profiles at www.sedarplus.com and www.sec.gov .
About Largo
Largo is a globally recognized vanadium company known for its high-quality VPURE™ and VPURE+™ products, sourced from its Maracás Menchen Mine in Brazil. The Company is currently focused on the ramp-up its ilmenite concentrate plant and is undertaking a strategic evaluation of its U.S.-based clean energy business, including its advanced VCHARGE vanadium battery technology to maximize the value of the organization. Largo's strategic business plan centers on maintaining its position as a leading vanadium supplier with a growth strategy to support a low-carbon future.
Largo's common shares trade on the Nasdaq Stock Market and on the Toronto Stock Exchange under the symbol "LGO". For more information on the Company, please visit www.largoinc.com .
Cautionary Statement Regarding Forward-looking Information:
This press release contains "forward-looking information" and "forward-looking statements" (collectively, "forward looking statements") within the meaning of applicable Canadian and United States securities legislation. Forward‐looking statements in this press release include, but are not limited to: the achievement of operational stability; Largo's ability to improve cash flow in the future; expected sales; diversifying the Company's product offering; optimizing operations, continued advancements at the Maracás Menchen Mine; the conclusion of the installation of Largo's battery project; and future commitments to purchase V 2 O 5 ..
The following are some of the assumptions upon which forward-looking statements are based: that general business and economic conditions will not change in a material adverse manner; demand for, and stable or improving price of V 2 O 5 and other vanadium commodities; receipt of regulatory and governmental approvals, permits and renewals in a timely manner; that the Company will not experience any material accident, labour dispute or failure of plant or equipment or other material disruption in the Company's operations at the Maracás Menchen Mine or relating to LCE; the availability of financing for operations and development; the ability to mitigate the impact of continuing heavy rainfall; the Company's ability to procure equipment and operating supplies in sufficient quantities and on a timely basis; that the estimates of the resources and reserves at the Maracás Menchen Mine are within reasonable bounds of accuracy (including with respect to size, grade and recovery and the operational and price assumptions on which such estimates are based); the Company's "two-pillar" business strategy will be successful; the Company's sales and trading arrangements will not be affected by the evolving sanctions against Russia; and the Company's ability to attract and retain skilled personnel and directors; the ability of management to execute strategic goals.
Forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". All information contained in this news release, other than statements of current and historical fact, is forward looking information. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Largo or LCE to be materially different from those expressed or implied by such forward-looking statements, including but not limited to those risks described in the annual information form of Largo and in its public documents filed on www.sedarplus.com and available on www.sec.gov from time to time. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Although management of Largo has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Largo does not undertake to update any forward-looking statements, except in accordance with applicable securities laws. Readers should also review the risks and uncertainties sections of Largo's most recent annual and interim MD&A, which also apply. Largo's most recent annual and interim MD&A are available on Largo's SEDAR+ profile at www.sedarplus.com .
Trademarks are owned by Largo Inc.
Non-GAAP 8 Measures
The Company uses certain non-GAAP measures in this press release, which are described in the following section. Non-GAAP financial measures and non-GAAP ratios are not standardized financial measures under IFRS, the Company's GAAP, and might not be comparable to similar financial measures disclosed by other issuers. These measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Management believes that non-GAAP financial measures, when supplementing measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company.
Revenues Per Pound Sold
This press release refers to revenues per pound sold, a non-GAAP performance measure that is used to provide investors with information about a key measure used by management to monitor the performance of the Company.
This measure, along with cash operating costs and total cash costs, is considered to be one of the key indicators of the Company's ability to generate operating earnings and cash flow from its Maracás Menchen Mine and sales activities. This revenues per pound sold measure does not have any standardized meaning prescribed by IFRS and differs from measures determined in accordance with IFRS. This measure is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. This measure is not necessarily indicative of net earnings or cash flow from operating activities as determined under IFRS.
The following table provides a reconciliation of this measure per pound sold to revenues as per the Q4 2023 and annual unaudited condensed interim consolidated financial statements.
Three months ended | Year ended | |||||||||||
December 31, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | |||||||||
Revenues - V 2 O 5 produced 1 | $ | 25,182 | $ | 24,908 | $ | 115,534 | $ | 123,529 | ||||
V 2 O 5 sold - produced (000s lb) | 3,215 | 3,483 | 13,113 | 14,307 | ||||||||
V 2 O 5 revenues per pound of V 2 O 5 sold - produced ($/lb) | $ | 7.83 | $ | 7.15 | $ | 8.81 | $ | 8.63 | ||||
Revenues - V 2 O 5 purchased 1 | $ | 1,497 | $ | — | $ | 9,028 | $ | 3,184 | ||||
V 2 O 5 sold - purchased (000s lb) | 265 | — | 1,279 | 265 | ||||||||
V 2 O 5 revenues per pound of V 2 O 5 sold - purchased ($/lb) | $ | 5.65 | $ | — | $ | 7.06 | $ | 12.02 | ||||
Revenues - V 2 O 5 1 | $ | 26,679 | $ | 24,908 | $ | 124,562 | $ | 126,713 | ||||
V 2 O 5 sold (000s lb) | 3,480 | 3,483 | 14,392 | 14,571 | ||||||||
V 2 O 5 revenues per pound of V 2 O 5 sold ($/lb) | $ | 7.67 | $ | 7.15 | $ | 8.65 | $ | 8.70 | ||||
Revenues - V 2 O 3 produced 1 | $ | 6,213 | $ | 4,736 | $ | 13,788 | $ | 8,534 | ||||
V 2 O 3 sold - produced (000s lb) | 596 | 426 | 1,215 | 734 | ||||||||
V 2 O 3 revenues per pound of V 2 O 3 sold - produced ($/lb) | $ | 10.42 | $ | 11.12 | $ | 11.35 | $ | 11.63 | ||||
Revenues - V 2 O 3 purchased 1 | $ | — | $ | 480 | $ | 1,155 | $ | 962 | ||||
V 2 O 3 sold - purchased (000s lb) | — | 42 | 88 | 85 | ||||||||
V 2 O 3 revenues per pound of V 2 O 3 sold - purchased ($/lb) | $ | — | $ | 11.43 | $ | 13.13 | $ | 11.32 | ||||
Revenues - V 2 O 3 1 | $ | 6,213 | $ | 5,216 | $ | 14,943 | $ | 9,496 | ||||
V 2 O 3 sold (000s lb) | 596 | 468 | 1,303 | 819 | ||||||||
V 2 O 3 revenues per pound of V 2 O 3 sold ($/lb) | $ | 10.42 | $ | 11.15 | $ | 11.47 | $ | 11.59 | ||||
Revenues - FeV produced 1 | $ | 11,278 | $ | 15,664 | $ | 57,686 | $ | 71,025 | ||||
FeV sold - produced (000s kg) | 479 | 559 | 2,070 | 2,135 | ||||||||
FeV revenues per kg of FeV sold - produced ($/kg) | $ | 23.54 | $ | 28.02 | $ | 27.87 | $ | 33.27 | ||||
Revenues - FeV purchased 1 | $ | — | $ | 1,713 | $ | 1,386 | $ | 22,017 | ||||
FeV sold - purchased (000s kg) | — | 64 | 50 | 603 | ||||||||
FeV revenues per kg of FeV sold - purchased ($/kg) | $ | — | $ | 26.77 | $ | 27.72 | $ | 36.51 | ||||
Revenues - FeV 1 | $ | 11,278 | $ | 17,377 | $ | 59,072 | $ | 93,042 | ||||
FeV sold (000s kg) | 479 | 623 | 2,120 | 2,738 | ||||||||
FeV revenues per kg of FeV sold ($/kg) | $ | 23.54 | $ | 27.89 | $ | 27.86 | $ | 33.98 | ||||
Revenues 1 | $ | 44,170 | $ | 47,501 | $ | 198,577 | $ | 229,251 | ||||
V 2 O 5 equivalent sold (000s lb) | 5,743 | 6,116 | 22,920 | 24,451 | ||||||||
Revenues per pound sold ($/lb) | $ | 7.69 | $ | 7.77 | $ | 8.66 | $ | 9.38 | ||||
| ||||||||||||
Cash Operating Costs Excluding Royalties Per Pound
The Company's press release refers to cash operating costs excluding royalties per pound, which are non-GAAP ratios based on cash operating costs and cash operating costs excluding royalties, which are non-GAAP financial measures, in order to provide investors with information about a key measure used by management to monitor performance. This information is used to assess how well the Maracás Menchen Mine is performing compared to plan and prior periods, and also to assess its overall effectiveness and efficiency.
Cash operating costs includes mine site operating costs such as mining costs, plant and maintenance costs, sustainability costs, mine and plant administration costs, royalties and sales, general and administrative costs (all for the Mine properties segment), but excludes depreciation and amortization, share-based payments, foreign exchange gains or losses, commissions, reclamation, capital expenditures and exploration and evaluation costs. Operating costs not attributable to the Mine properties segment are also excluded, including conversion costs, product acquisition costs, distribution costs and inventory write-downs.
Cash operating costs excluding royalties is calculated as cash operating costs less royalties. Cash operating costs per pound and cash operating costs excluding royalties per pound are obtained by dividing cash operating costs and cash operating costs excluding royalties, respectively, by the pounds of vanadium equivalent sold that were produced by the Maracás Menchen Mine. Cash operating costs, cash operating costs excluding royalties, cash operating costs per pound and cash operating costs excluding royalties per pound, along with revenues, are considered to be key indicators of the Company's ability to generate operating earnings and cash flow from its Maracás Menchen Mine. These measures differ from measures determined in accordance with IFRS, and are not necessarily indicative of net earnings or cash flow from operating activities as determined under IFRS.
The following table provides a reconciliation of cash operating costs and cash operating costs excluding royalties, cash operating costs per pound and cash operating costs excluding royalties per pound for the Maracás Menchen Mine to operating costs as per the 2023 annual consolidated financial statements.
Three months ended | Year ended | |||||||||||
December 31, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | |||||||||
Operating costs i | $ | 43,218 | $ | 44,455 | $ | 174,758 | $ | 169,719 | ||||
Professional, consulting and management fees ii | 887 | 1,185 | 3,102 | 4,969 | ||||||||
Other general and administrative expenses iii | 718 | 530 | 1,750 | 1,390 | ||||||||
Add: insurance proceeds i | — | 683 | — | 683 | ||||||||
Less: iron ore costs i | (84 | ) | (22 | ) | (722 | ) | (659 | ) | ||||
Less: conversion costs i | (1,768 | ) | (2,231 | ) | (7,319 | ) | (8,070 | ) | ||||
Less: product acquisition costs i | (1,974 | ) | (3,775 | ) | (15,354 | ) | (24,426 | ) | ||||
Less: distribution costs i | (2,366 | ) | (2,282 | ) | (8,540 | ) | (9,169 | ) | ||||
Less: inventory write-down iv | (192 | ) | (332 | ) | (1,853 | ) | (1,987 | ) | ||||
Less: depreciation and amortization expense i | (6,592 | ) | (5,959 | ) | (26,048 | ) | (20,882 | ) | ||||
Cash operating costs | 31,847 | 32,252 | 119,774 | 111,568 | ||||||||
Less: royalties 1 | (2,243 | ) | (2,106 | ) | (9,162 | ) | (10,371 | ) | ||||
Cash operating costs excluding royalties | 29,604 | 30,146 | 110,612 | 101,197 | ||||||||
Produced V 2 O 5 sold (000s lb) | 5,437 | 5,855 | 20,871 | 22,121 | ||||||||
Cash operating costs per pound ($/lb) | $ | 5.86 | $ | 5.51 | $ | 5.74 | $ | 5.04 | ||||
Cash operating costs excluding royalties per pound ($/lb) | $ | 5.44 | $ | 5.15 | $ | 5.30 | $ | 4.57 | ||||
| ||||||||||||
EBITDA and Adjusted EBITDA
The Company's press release refers to earnings before interest, tax, depreciation and amortization, or "EBITDA", and adjusted EBITDA, which are non-GAAP financial measures, in order to provide investors with information about key measures used by management to monitor performance. EBITDA is used as an indicator of the Company's ability to generate liquidity by producing operating cash flow to fund working capital needs, service debt obligations, and fund capital expenditures.
Adjusted EBITDA removes the effect of inventory write-downs, impairment charges (including write-downs of vanadium assets), insurance proceeds received, movements in legal provisions, non-recurring employee settlements and other expense adjustments that are considered to be non-recurring for the Company. The Company believes that by excluding these amounts, which are not indicative of the performance of the core business and do not necessarily reflect the underlying operating results for the periods presented, it will assist analysts, investors and other stakeholders of the Company in better understanding the Company's ability to generate liquidity from its core business activities.
EBITDA and adjusted EBITDA are intended to provide additional information to analysts, investors and other stakeholders of the Company and do not have any standardized definition under IFRS. These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures exclude the impact of depreciation, costs of financing activities and taxes, and the effects of changes in operating working capital balances, and therefore are not necessarily indicative of operating profit or cash flow from operating activities as determined under IFRS. Other companies may calculate EBITDA and adjusted EBITDA differently.
The following table provides a reconciliation of EBITDA and adjusted EBITDA to net income (loss) as per the 2023 annual consolidated financial statements.
Three months ended | Year ended | |||||||||||
December 31, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | |||||||||
Net loss | $ | (13,301 | ) | $ | (15,636 | ) | $ | (32,358 | ) | $ | (2,226 | ) |
Finance costs | 4,096 | 801 | 9,630 | 1,588 | ||||||||
Interest income | (280 | ) | (311 | ) | (2,018 | ) | (1,109 | ) | ||||
Income tax expense | 40 | (1,336 | ) | 88 | 7,688 | |||||||
Deferred income tax recovery | (3,119 | ) | (252 | ) | (2,786 | ) | (1,423 | ) | ||||
Depreciation i | 7,393 | 6,725 | 29,250 | 23,278 | ||||||||
EBITDA | $ | (5,171 | ) | $ | (10,009 | ) | $ | 1,806 | $ | 27,796 | ||
Inventory write-down ii | 2,407 | 6,797 | 4,068 | 8,739 | ||||||||
Write-down of vanadium assets | 3,535 | — | 4,862 | — | ||||||||
Insurance proceeds iii | — | (683 | ) | — | (683 | ) | ||||||
Movement in legal provisions iii | (85 | ) | 215 | 692 | 5,107 | |||||||
Employee settlements iii | 699 | — | 699 | 624 | ||||||||
Adjusted EBITDA | $ | 1,385 | $ | (3,680 | ) | $ | 12,127 | $ | 41,583 | |||
| ||||||||||||
______________________________________________
1 Revenues per pound sold and cash operating costs are non-GAAP financial measures, and cash operating costs per pound and cash operating costs excluding royalties per pound are non-GAAP ratios with no standard meaning under IFRS, and may not be comparable to similar financial measures disclosed by other issuers. Refer to the "Non-GAAP Measures" section of this press release.
2 Adjusted EBITDA is a non-GAAP financial measure with no standard meaning under IFRS, and may not be comparable to similar financial measures disclosed by other issuers. Refer to the "Non-GAAP Measures" section of this press release.
3 Defined as current assets less current liabilities per the consolidated statements of financial position.
4 Fastmarkets MetalBulletin
5 The cash operating costs excluding royalties and revenues per pound per pound sold are reported on a non-GAAP basis. Refer to the "Non-GAAP Measures" section of this press release. Revenues per pound sold are calculated based on the quantity of V2O5 sold during the stated period.
6 Effective grade represents the percentage of magnetic material mined multiplied by the percentage of V2O5 in the magnetic concentrate
7 Global recovery is the product of crushing recovery, milling recovery, kiln recovery, leaching recovery and chemical plant recovery.
8 GAAP – Generally Accepted Accounting Principles
Appendix:
Consolidated Statements of Financial Position
Expressed in thousands / 000's of U.S. dollars
As at | |||||||
December 31, 2023 | December 31, 2022 | ||||||
Assets | |||||||
Cash | $ | 42,714 | $ | 54,471 | |||
Restricted cash | 712 | 470 | |||||
Amounts receivable | 25,598 | 20,975 | |||||
Inventory | 61,565 | 64,221 | |||||
Prepaid expenses | 6,534 | 14,007 | |||||
Total Current Assets | 137,123 | 154,144 | |||||
Other intangible assets | 6,153 | 7,263 | |||||
Mine properties, plant and equipment | 212,176 | 175,237 | |||||
Vanadium assets | 18,674 | 14,510 | |||||
Deferred income tax asset | 7,495 | 4,596 | |||||
Total Non-current Assets | 244,498 | 201,606 | |||||
Total Assets | $ | 381,621 | $ | 355,750 | |||
Liabilities | |||||||
Current portion of lease liability | $ | 600 | $ | 581 | |||
Accounts payable and accrued liabilities | 31,439 | 26,634 | |||||
Deferred revenue | 3,553 | 1,698 | |||||
Debt | — | 4,000 | |||||
Current portion of provisions | 6,863 | 6,060 | |||||
Total Current Liabilities | 42,455 | 38,973 | |||||
Lease liability | 925 | 1,473 | |||||
Non-current accounts payable and accrued liabilities | 724 | 326 | |||||
Long term debt | 75,000 | 36,000 | |||||
Provisions | 6,718 | 4,424 | |||||
Total Non-current Liabilities | 83,367 | 42,223 | |||||
Total Liabilities | 125,822 | 81,196 | |||||
Equity | |||||||
Issued capital | 412,295 | 411,646 | |||||
Equity reserves | 12,200 | 14,138 | |||||
Accumulated other comprehensive loss | (98,200 | ) | (112,165 | ) | |||
Deficit | (77,643 | ) | (48,227 | ) | |||
Equity attributable to owners of the Company | 248,652 | 265,392 | |||||
Non-controlling Interest | 7,147 | 9,162 | |||||
Total Equity | 255,799 | 274,554 | |||||
Total Liabilities and Equity | $ | 381,621 | $ | 355,750 | |||
Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)
Expressed in thousands / 000's of U.S. dollars and shares (except per share information)
Years ended December 31, | |||||||
2023 | 2022 | ||||||
Revenues | $ | 198,684 | $ | 229,251 | |||
Expenses | |||||||
Operating costs | (174,758 | ) | (169,719 | ) | |||
Professional, consulting and management fees | (23,068 | ) | (25,277 | ) | |||
Foreign exchange (loss) gain | (183 | ) | 1,584 | ||||
Other general and administrative expenses | (11,792 | ) | (14,319 | ) | |||
Share-based payments | 362 | (2,372 | ) | ||||
Finance costs | (9,630 | ) | (1,588 | ) | |||
Interest income | 2,018 | 1,109 | |||||
Technology start-up costs | (6,122 | ) | (12,695 | ) | |||
Write-down of vanadium assets | (4,862 | ) | — | ||||
Exploration and evaluation costs | (5,705 | ) | (1,935 | ) | |||
(233,740 | ) | (225,212 | ) | ||||
Net income (loss) before tax | $ | (35,056 | ) | $ | 4,039 | ||
Income tax expense | (88 | ) | (7,688 | ) | |||
Deferred income tax recovery | 2,786 | 1,423 | |||||
Net loss | $ | (32,358 | ) | $ | (2,226 | ) | |
Other comprehensive income | |||||||
Items that subsequently will be reclassified to operations: | |||||||
Unrealized gain on foreign currency translation | 13,965 | 6,607 | |||||
Comprehensive income (loss) | $ | (18,393 | ) | $ | 4,381 | ||
Net loss attributable to: | |||||||
Owners of the Company | $ | (30,343 | ) | $ | (1,451 | ) | |
Non-controlling interests | $ | (2,015 | ) | $ | (775 | ) | |
$ | (32,358 | ) | $ | (2,226 | ) | ||
Comprehensive income (loss) attributable to: | |||||||
Owners of the Company | $ | (16,378 | ) | $ | 5,156 | ||
Non-controlling interests | $ | (2,015 | ) | $ | (775 | ) | |
$ | (18,393 | ) | $ | 4,381 | |||
Basic loss per Common Share | $ | (0.51 | ) | $ | (0.03 | ) | |
Diluted loss per Common Share | $ | (0.51 | ) | $ | (0.03 | ) | |
Weighted Average Number of Shares Outstanding (in 000's) | |||||||
- Basic | 64,038 | 64,446 | |||||
- Diluted | 64,038 | 64,446 | |||||
Consolidated Statements of Cash Flows
Expressed in thousands / 000's of U.S. dollars
Years ended December 31, | |||||||
2023 | 2022 | ||||||
Operating Activities | |||||||
Net loss for the year | $ | (32,358 | ) | $ | (2,226 | ) | |
Depreciation | 29,250 | 23,278 | |||||
Share-based payments | (362 | ) | 2,372 | ||||
Unrealized foreign exchange (gain) | (509 | ) | (4,580 | ) | |||
Non-cash listing expense | — | 571 | |||||
Loss on sale of vanadium assets | 156 | — | |||||
Finance costs | 9,630 | 1,588 | |||||
Interest income | (2,018 | ) | (1,109 | ) | |||
Write down of vanadium assets | 4,862 | — | |||||
Income tax expense | 88 | 7,688 | |||||
Deferred income tax recovery | (2,786 | ) | (1,423 | ) | |||
Income tax paid | (686 | ) | (4,735 | ) | |||
Cash Provided Before Working Capital Items | 5,267 | 21,424 | |||||
Change in amounts receivable | (3,861 | ) | 3,573 | ||||
Change in inventory | 5,361 | (15,710 | ) | ||||
Change in prepaid expenses | 7,961 | (7,232 | ) | ||||
Changes in accounts payable and provisions | 4,614 | 5,176 | |||||
Change in deferred revenue | 1,855 | (3,771 | ) | ||||
Net Cash Provided by Operating Activities | 21,197 | 3,460 | |||||
Financing Activities | |||||||
Receipt of debt | 70,000 | 55,000 | |||||
Repayment of debt | (35,000 | ) | (30,000 | ) | |||
Interest paid | (7,065 | ) | (616 | ) | |||
Interest received | 2,014 | 1,109 | |||||
Lease payments | (580 | ) | (569 | ) | |||
Change in restricted cash | (242 | ) | (22 | ) | |||
Sale of non-controlling interest | — | 7,344 | |||||
Share repurchase | — | (6,088 | ) | ||||
Issuance of common shares | — | 277 | |||||
Net Cash Provided by Financing Activities | 29,127 | 26,435 | |||||
Investing Activities | |||||||
Intangible assets | (157 | ) | (3,444 | ) | |||
Mine properties, plant and equipment | (53,546 | ) | (42,193 | ) | |||
Purchase of vanadium assets | (10,115 | ) | (14,510 | ) | |||
Sale of vanadium assets | 933 | — | |||||
Net Cash Used in Investing Activities | (62,885 | ) | (60,147 | ) | |||
Effect of foreign exchange on cash | 804 | 933 | |||||
Net Change in Cash | (11,757 | ) | (29,319 | ) | |||
Cash position – beginning of the year | 54,471 | 83,790 | |||||
Cash Position – end of the year | $ | 42,714 | $ | 54,471 | |||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240321493592/en/
For further information, please contact:
Investor Relations
Alex Guthrie
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aguthrie@largoinc.com
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KEY POINTS
AVL’s Chief Executive Officer, Graham Arvidson comments, “The completion of the facility, coupled with the confirmation of the production of on-specification vanadium electrolyte from Western Australia’s first manufacturing facility, achieves another major milestone for AVL and is a positive reflection of the technical and operational expertise within our organisation. We are ready to accept orders for electrolyte and are actively pursuing sales.”
Vanadium electrolyte is one of the key components of vanadium flow batteries. These batteries are well suited to large-scale energy storage applications, such as those required for electrical grids. They offer a high capacity for energy storage and a long cycle life, having the ability to be charged and discharged repeatedly without significant degradation. AVL’s wholly owned subsidiary, VSUN Energy Pty Ltd, is establishing a long duration energy storage pilot for Horizon Power in Kununurra, in the north of Western Australia.3 Projects such as this have the potential to use vanadium electrolyte produced by the Facility, demonstrating the potential for a high local content solution for Australia’s long-duration energy storage needs.
The unique advantages of vanadium flow batteries, including their scalability, long lifespan and the ability to maintain capacity over time, makes vanadium electrolyte a critical component in addressing the challenges of energy storage and distribution in a world increasingly reliant on intermittent renewable energy sources.
The successful establishment of the Facility is an important milestone for AVL and the development of industries to support Australia’s long-term carbon emission reduction plans. The Facility was built with Federal government assistance in the form of a $3.69 million Australian Government Modern Manufacturing Translation grant, awarded to AVL under the National Manufacturing Priority Roadmap in 2021.4 The majority of the grant was used to contribute to the cost of building the Facility.
The Facility, located in Wangara, Perth, was designed to produce high-purity electrolyte to support up to 33 MWh per year of VFB energy storage.5 AVL is able to expand the Facility easily. The ability to source local electrolyte will enable AVL to become a trusted supplier of vanadium electrolyte for battery projects in Australia and the wider region, at a time when there is increasing community and government interest in ensuring capabilities to support the energy transition.
Figure 1 - Ben Davis and Haley Knighten Criss (USV) and Flormirza Cabalteja (AVL) with first vanadium electrolyte samples
The Company is using proven electrolyte manufacturing technology licensed from U.S. Vanadium LLC (USV) exclusively to AVL in Australia and New Zealand. Staff from USV travelled from the United States to assist with commissioning. Supplies of the vanadium oxides required by the Facility for the production of vanadium electrolyte are currently being provided by USV. When the Australian Vanadium Project is in production, the Company will provide full ‘pit to battery’ downstream value addition, by generating a vanadium concentrate at the mine site, to be fed to AVL’s proposed processing plant for producing the vanadium pentoxide used as a feedstock for the Facility.
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This article includes content from Australian Vanadium, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
New Relationship Would Establish Integrated Supply Chain for Vanadium and Vanadium Electrolyte Manufacturing; Support Growing Demand For Long-duration Energy Storage Solutions
Largo Inc. (TSX: LGO) (NASDAQ: LGO) is pleased to announce the signing of a non-binding letter of intent with Stryten Energy LLC (" Stryten ") to establish a 50:50 joint venture that would combine the Company's wholly owned subsidiary, Largo Clean Energy Corp. (" LCE ") with Stryten's vanadium redox flow battery (" VRFB ") business (the " Proposed Transaction "). This announcement comes in concert with Enel Green Power España and LCE's go-live of a 5.5-megawatt hour VRFB in Spain, the deployment of one of the largest utility scale vanadium system in Europe.
The combination of the parties' decades of VRFB technology expertise, access to raw vanadium supplies from friendly sources, and high-volume electrolyte production capabilities is expected to transform the long-duration energy storage (" LDES ") sector in North America.
The estimated market in North America for VRFB LDES solutions is hundreds of Gigawatts in size, requiring the creation of a vertically integrated vanadium supply chain to reliably meet this demand. It is expected that this joint venture would provide access to U.S.-produced vanadium electrolyte needed for VRFB manufacturers to accelerate the commercial deployment of vanadium battery solutions.
"The agreement is a direct result of our review and evaluation of strategic alternatives to unlock and fully maximize the value of LCE," said Daniel Tellechea, Director and Interim Chief Executive Officer of Largo. "The distinctive value proposition LCE presents for vanadium batteries and the long-duration energy storage sector, including its patented vanadium flow battery stack technology, electrolyte purification technology and access to vanadium through Largo Physical Vanadium Corp. (TSX.V:VAND, OTCQX:VANAF), were key determining factors in advancing our discussions with Stryten. Additionally, Stryten's ability to produce electrolyte in large volumes will help reduce the overall cost for VRFB solutions, a critical factor in catalyzing the commercial adoption of the technology and meeting the DOE LCOS targets."
The Proposed Transaction remains subject to, among other conditions, negotiation of definitive agreements, completion of due diligence by both parties and receipt of any required Board and regulatory approvals. There can be no assurance that the Proposed Transaction will be completed, nor can there be any assurance, if the Proposed Transaction is completed, that the potential benefits of the Proposed Transaction will be realized.
About Stryten Energy
Stryten Energy helps solve the world's most pressing energy challenges with a broad range of energy storage solutions across the Essential Power, Motive Power, Transportation, Military and Government sectors. Headquartered in Alpharetta, Georgia, Stryten Energy partners with some of the world's most recognized companies to meet the growing demand for reliable and sustainable energy storage capacity. Stryten Energy powers everything from submarines to subcompacts, microgrids, warehouses, distribution centers, cars, trains and trucks. Its stored energy technologies include advanced lead, lithium and vanadium redox flow batteries, intelligent chargers and energy performance management software that keep people on the move and supply chains running. An industry leader backed by more than a century of expertise, Stryten has The Energy to Challenge the status quo and deliver top-performing energy solutions for today and tomorrow. Learn more at www.stryten.com .
About Largo Physical Vanadium Corp.
LPV aims to provide a secure, convenient and exchange-traded investment alternative for investors interested in having direct exposure to physical vanadium, a metal essential to achieving a greener world in key industries such as steel, aerospace and energy storage. Vanadium is non-degrading and fully recyclable when used as electrolyte in vanadium redox flow batteries (VRFBs) and offers carbon reducing attributes when used in steel alloying applications. LPV offers pure-play exposure to vanadium through its holdings of physical vanadium. LPV's strategy is not only to achieve appreciation through the acquisition of vanadium, but to own and actively supply vanadium to end users of VRFBs to advance to integration of renewable energy in long duration storage. This strategy is integral to LPV's business plan, as it necessarily defrays the costs to LPV associated with storage of vanadium, and demonstrates the benefits and utility of vanadium, therefore supporting vanadium's value. For more information, please visit www.lpvanadium.com .
About Largo
Largo is a globally recognized vanadium company known for its high-quality VPURE™ and VPURE+™ products, sourced from its Maracás Menchen Mine in Brazil. The Company is currently focused on ramping up production of its ilmenite concentrate plant and is undertaking a strategic evaluation of its U.S.-based clean energy business, including its advanced VCHARGE vanadium battery technology to maximize the value of the organization. Largo's strategic business plan centers on maintaining its position as a leading vanadium supplier with a growth strategy to support a low-carbon future.
Largo's common shares trade on the Nasdaq Stock Market and on the Toronto Stock Exchange under the symbol "LGO". For more information on the Company, please visit www.largoinc.com .
Cautionary Statement Regarding Forward-looking Information:
This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian and United States securities legislation. Forward‐looking information in this press release includes, but is not limited to, statements with respect to the Proposed Transaction, the entering into of a definitive agreements, the conditions to Closing, including receipt of all necessary regulatory approvals.
The following are some of the assumptions upon which forward-looking information is based: receipt of regulatory and governmental approvals and permits in connection with the Proposed Transaction in a timely manner; that the Parties will be able to work collaboratively as parties to a joint venture; that due diligence in connection with the Proposed Transaction will be completed and the results thereof being acceptable to the parties; and the ability of management of the joint venture to execute strategic goals.
Forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". All information contained in this news release, other than statements of current and historical fact, is forward looking information. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Largo to be materially different from those expressed or implied by such forward-looking statements, including but not limited: to those risks described in the annual information form of Largo and in its public documents filed on www.sedarplus.ca and available on www.sec.gov from time to time; the risk that the Proposed Transaction may not be completed in a timely manner or at all; the failure to satisfy the conditions to the consummation of the Proposed Transaction, including receiving the necessary regulatory approvals; failure to realize the anticipated benefits of the Proposed Transaction; the occurrence of any event, change or other circumstance that could give rise to the termination of the letter of intent prior to a definitive agreement being reached; the inability to implement business plans, forecasts, and other expectations after the completion of the Proposed Transaction; and any inability to raise additional funds to meet capital requirements and pursue the growth strategy of the joint venture when and in the amounts needed. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Although management of Largo has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Largo does not undertake to update any forward-looking statements, except in accordance with applicable securities laws. Readers should also review the risks and uncertainties sections of Largo's annual and interim MD&A which also apply.
Trademarks are owned by Largo Inc.
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For further information:
Investor Relations
Alex Guthrie
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+1.416.861.9778
aguthrie@largoinc.com
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Largo Inc. ("Largo" or the "Company") (TSX: LGO) (NASDAQ: LGO) will release its fourth quarter and annual 2023 financial results on Thursday, March 21, 2024 after the close of market trading. Additionally, the Company will host a conference call to discuss its fourth quarter, annual 2023 results and other updates on Friday, March 22 at 1:00 p.m. ET.
To join the conference call without operator assistance, you may register and enter your phone number at https://emportal.ink/48drhVN to receive an instant automated call back.
You may also dial direct to be entered to the call by an operator using the dial-in details provided below.
Conference Call Details | |
Date: | Friday, March 22, 2023 |
Time: | 1:00 p.m. ET |
Dial-in Number: | Local: +1 (416) 764-8650 |
North American Toll Free: +1 (888) 664-6383 | |
Conference ID: | 00825768 |
RapidConnect Link | |
Replay Number: | Local / International: + 1 (416) 764-8677 |
North American Toll Free: +1 (888) 390-0541 | |
Replay Passcode: 825768# | |
Website: | To view press releases or any additional financial information, please visit the Investor Resources section of the Company's website at: https://www.largoinc.com/investors/Overview |
About Largo
Largo is a globally recognized vanadium company known for its high-quality VPURE TM and VPURE+ TM products, sourced from its Maracás Menchen Mine in Brazil. The Company is currently focused on ramping up production of its ilmenite concentrate plant and is undertaking a strategic evaluation of its U.S.-based clean energy business, including its advanced VCHARGE vanadium battery technology to maximize the value of the organization. Largo's strategic business plan centers on maintaining its position as a leading vanadium supplier with a growth strategy to support a low-carbon future.
Largo's common shares trade on the Nasdaq Stock Market and on the Toronto Stock Exchange under the symbol "LGO". For more information on the Company, please visit www.largoinc.com .
View source version on businesswire.com: https://www.businesswire.com/news/home/20240315285950/en/
For further information, please contact:
Investor Relations
Alex Guthrie
Senior Manager, External Relations
+1.416.861.9778
aguthrie@largoinc.com
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KEY POINTS
As part of the Optimised Feasibility Study (OFS) being conducted by AVL to inform the preferred project development pathway for the integrated project,1 work has progressed to maximise the possible economic return through access to the high-grade southern area of the orebody, which previously straddled the two projects. This work has included metallurgical testwork on parts of the orebody adjoining the Yarrabubba deposit.
CEO, Graham Arvidson comments, “This testwork bolsters our view that a long-life, high-grade integrated project at the southern areas of the combined project can be defined quickly based on historical work by removing the constraints from TMT’s previously landlocked Yarrabubba deposit and adding to it similar mineralisation within the historical AVL deposit. The team will use this testwork within the broader integration studies, with the aim of improving the economics of the project via reduced capital and operating costs. This has the potential to deliver a material increase in value for our shareholders.”
Figure 1 – Location map showing blocks of AVL’s deposit
The combined project on one orebody is broken by several regional scale faults which split the deposit into a series of blocks. The Yarrabubba deposit has now become Block 80 of AVL’s combined deposit and abuts AVL’s Block 70 deposit (see Figure 1 above).
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