Canada’s Largo Resources Ltd (TSX: LGO) (OTCQX: LGORF) has announced record annual production of 10,577 tonnes of vanadium pentoxide (V2O5) for 2019 at the Maracás Menchen Mine in Brazil.
The company also recorded the lowest annual cash operating costs excluding royalties achieved to date of US$2.95 per pound of V2O5.
However, Largo President and CEO Paulo Misk, noted that, the company recorded a net loss of C$36.2 million in 2019 largely due to lower vanadium prices and the re-measurement of trade receivables / payables as part of its offtake agreement which expires on April 30, 2020.
“Profitability was impacted in Q4 2019 and in 2019 as a consequence of lower vanadium prices and largely due to a total re-measurement of trade receivables / payables during the year of C$137.3 million as part of the company’s off-take agreement,” Mr Misk said.
“Following the expiration of the off-take agreement next month, the company remains focused on maximizing value through its sales and marketing business, which includes a focus on high purity vanadium sales with price premiums.
“I am very pleased to report that the company is approximately 90% committed on its annual guided sales for 2020.”
Mr Misk said that on the operational front, the company performed extremely well in 2019 achieving cash operating costs excluding royalties of US$2.95 per pound of V2O5 in addition to setting a new V2O5 production record of 10,577 tonnes.
“I am very proud of the entire Largo team who have consistently demonstrated their ability to achieve new production records while maintaining cost discipline.
“In addition to the ferrovanadium conversion plant approval, the Board of Directors has also approved the construction of a V2O3 processing plant at the Maracás Menchen Mine.
“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 electrolyte used for vanadium redox flow batteries.
“The company is continuing to monitor the rapidly developing impacts of the COVID-19 (“coronavirus”) pandemic and will take all possible actions to help minimize the impact on the company and its people. Our thoughts are with all of those affected by this virus.
“To date, there has been no impact on our production or on our shipment of product out of Maracás.”