Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Largo Resources Reports Solid Q1 2020 Results with Net Income of $5.7 Million and Maintains Strong Liquidity Position
T.LGO | 1 day ago
All financial figures are in Canadian dollars unless otherwise stated.
Q1 2020 Highlights
Net income of $5.7 million and basic earnings per share of $0.01
Cash operating costs excluding royalties1 of US$2.79($3.69) per lb of V2O5, a decrease of 18% over Q1 2019
Production of 2,831 tonnes (6.2 million pounds2) of V2O5, a 35% increase over Q1 2019
V2O5 sales of 3,170 tonnes, a 51% increase over Q1 2019
Revenues of $58.2 million (after a positive re-measurement of trade receivables / payables of $2.4 million on vanadium sales from a contract with a customer of $55.8 million), an increase of 31% over Q1 2019
Cash balance of $206.1 million exiting Q1 2020
Commercial independence: Over 85% committed on annual guided sales for 2020
COVID-19 Update: The Maracás Menchen Mine continued operations during Q1 2020 and the Company is maintaining it's 2020 guidance on a "business as usual" basis
Q1 2020 operational and financial results conference call: Wednesday, May 13th, 2020 at 10:00 a.m. EST
Largo Resources Announces Expiration of its Vanadium Off-take Agreement and Commences Full Commercial Control of its Own Vanadium Production
May 01, 2020
- Strategic sales and marketing transition proven successful: Over 85% committed on guided annual sales for 2020
- Sales and trading team fully operational out of its two commercial offices in Dublin, Ireland and Washington DC, USA.
- The Company announced the launch of VPURE™ and VPURE+™, newly developed brands for the Company's vanadium products in January 2020
TORONTO, May 1, 2020 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") (TSX: LGO) (OTCQX: LGORF) announces that in accordance with its notice given on August 20, 2019, the Company's off-take agreement with Glencore International AG has expired effective April 30, 2020.
Paulo Misk, President and Chief Executive Officer for Largo, stated: "Largo continues to remain one of the lowest-cost vanadium producers in the world with an established industry reputation for its high-quality vanadium products. Following the expiration of its off-take agreement, the Company's sales and trading team is fully dedicated to the promotion and sales of Largo's products. We have assembled a very strong commercial team at Largo who have committed approximately 85% of the Company's annual guided sales for 2020. We expect the balance of production will be sold in the spot market and be used to build safety stocks in strategic regional hubs."
He continued: "The Maracás Menchen Mine has a proven track record of premium product quality and operational stability, which allows the Company to provide its customers with a reliable source of vanadium pentoxide for the global steel and high purity markets. We believe this transition will be very beneficial economically and strategically for Largo and marks a transformative moment in the Company's history. We look forward to maximizing value for all of our shareholders as the industry preferred producer and supplier of vanadium."
He concluded: "We would like to thank Glencore for its support over the past six years. Their off-take agreement was helpful in obtaining debt funding for the project construction and allowed Largo Resources to evolve from a highly leveraged start-up Company to one of the world's largest and most competitive producers of vanadium with a strong financial position. Our Company today becomes an even more important player in the global vanadium industry due to its commercial independence."
Read at:
https://www.largoresources.com/investors/news/press-release-details/2020/Largo-Resources-Announces-Expiration-of-its-Vanadium-Off-take-Agreement-and-Commences-Full-Commercial-Control-of-its-Own-Vanadium-Production/default.aspx
All Engines Go...3-2-1... Blast-Off!
https://countingdownto.com/?c=2599065
Good Luck To All!$!$
Topped off my position when it hit roughly $0.50. Thanks for the update!
Also, keep posting your GERS/ATIS findings. I'm sure you've never planned to stop, but I always appreciate and respect your's and skunk's input.
I know you're going against the general consensus right now on the boards, but your recent findings seem like GERS & Attis silver bullet to me. It definitely paints the defense as opportunistic and manipulative, not to mention crooked. Hopefully, the next step in the process isn't a decade long one (a man can dream).
Lastly, do you have any views on the Attis situation? Do you see any hope for the commoner or have the odds of a resurgence already been wiped out? Things just don't add up there in terms of revocation, for multiple reasons.
If you have the time, feel free to leave your comments over on the ATIS/GERS board. If you don't, I won't hold it against you.
Thanks again for the update and I hope all is well
Vanadium Prices Surge 25% On Supply Concerns...
$6.90-$7.45 per pound
https://www.metalbulletin.com/Article/3928470/Vanadium/NOBLE-ALLOYS-MARKET-REPORT-1704-V2O5-price-jumps-25-on-supply-concerns-active-spot-market.html
Looking good here...
Good Luck To All!$!$
Largo Resources Reports V2O5 Production of 2,831 Tonnes in Q1 2020
April 13, 2020
- V2O5 production of 2,831 tonnes (6.2 million lbs1) in Q1 2020, an increase of 35% over Q1 2019
- Global V2O5 recovery rate of 79.9% in Q1 2020 compared to 80.0% in Q1 2019 and 77.3% in Q4 2019
- Planned kiln upgrades and cooler maintenance in April 2020 postponed due to COVID-19 precautions; Enhanced chemical plant preventative maintenance to be performed
- 2020 production, sales and cost guidance maintained
TORONTO, April 13, 2020 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") (TSX: LGO) (OTCQX: LGORF) announces first quarter 2020 production results from its Maracás Menchen Mine with production of 2,831 tonnes of vanadium pentoxide ("V2O5") produced at an average global recovery rate2 of 79.9%.
Total production in Q1 2020 from the Maracás Menchen Mine was 2,831 tonnes of V2O5 representing an increase of 35% over Q1 2019. Production in January 2020 was 956 tonnes of V2O5, with 915 tonnes of V2O5 produced in February 2020 and 960 tonnes produced in March 2020. Production in January 2020 was impacted by shutdowns of the kiln and cooler to fix the refractory and for maintenance to correct instability in the kiln feed. Production in February and March 2020 was impacted by additional kiln shutdowns to fix hot spots in the refractory. The Company's planned upgrades to the kiln and improvements in the cooler have been postponed until further notice as a result of precautionary measures such as limiting mine site personnel and contractors in light of the COVID-19 pandemic. The Company will instead be performing an enhanced preventative maintenance program in the chemical plant for approximately 15 days and, as a result, estimates that April 2020 production will be approximately 500 tonnes of V2O5.
In Q1 2020, 203,966 tonnes of ore with an effective V2O5 grade3 of 1.61% were mined and the crushing unit was fed with 226,394 tonnes with an effective V2O5 grade3 of 1.43%. The Company also produced 100,072 tonnes of concentrate ore with an average V2O5 grade3 of 3.36% compared to 86,673 tonnes produced in Q1 2019 with a grade of 3.32%.
Global V2O5 recovery rates2 averaged 79.9% in Q1 2020 which compares to 80.0% in Q1 2019. Global recoveries2 in Q1 2020 increased 3% over Q4 2019 (77.3%) following improved recoveries in the crushing, milling, leaching and chemical plant areas but were partially offset by lower recoveries in the kiln.
Read more at:
https://www.largoresources.com/investors/news/press-release-details/2020/Largo-Resources-Reports-V2O5-Production-of-2831-Tonnes-in-Q1-2020/default.aspx
Largo Resources Reports Record Production and Lowest Annual Cash Costs at the Maracás Menchen Mine with 2019 Financial Results
March 20, 2020
All financial figures are in Canadian dollars unless otherwise stated.
Q4 2019 Highlights
Production of 3,011 (6.6 million lbs 1 ) tonnes of V2O5 in Q4 2019, a 16% increase over Q4 2018
Record monthly V2O5 production of 1,162 tonnes in December 2019
Cash operating costs excluding royalties2 of US$2.48 ($3.28) per lb V2O5, a decrease of 29% over Q4 2018
Revenues of $34.1 million in Q4 2019 (net of the re-measurement of trade receivables / payables of $13.5 million on vanadium sales from a contract with a customer of $47.6 million)
Full Year 2019 Highlights
Record FY 2019 production, achieving midpoint production guidance: 10,577 tonnes (23.3 million lbs1) of V2O5 produced in 2019, an increase of 8% over FY 2018
Cash operating costs excluding royalties2 of US$2.95 ($3.92) per lb V2O5, 12% lower than 2019 cost guidance; 13% lower than 2018
Revenues of $140.0 million in FY 2019 (net of the re-measurement of trade receivables / payables of $137.3 million on vanadium sales from a contract with a customer of $277.3 million)
Net loss of $36.2 million and a loss per share of $0.07
Cash balance of $166.1 million exiting 2019
New safety record in 2019: 238 days (1.5 million man-hours worked) without a Lost Time Injury
Other Significant Updates
Strategic sales and marketing transition proven successful: 90% committed on guided annual sales for 2020
New 2020 total cash cost8 guidance of US$3.45 – 3.65/lb V2O5
2020 total cash cost8, cash operating costs excluding royalties2, sales and production guidance maintained on a "business as usual" basis
Board approval for the construction of a vanadium trioxide ("V2O3") processing plant in Maracás, Brazil
Ilmenite flotation pilot plant proven successful; TiO2 chemical pilot plant tests and study expected to commence in April 2020
Read more at:
https://www.largoresources.com/investors/news/press-release-details/2020/Largo-Resources-Reports-Record-Production-and-Lowest-Annual-Cash-Costs-at-the-Maracs-Menchen-Mine-with-2019-Financial-Results/default.aspx
Largo Resources Launches VPURE and VPURE+ Vanadium Products
TORONTO, Jan. 22, 2020 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") (TSX: LGO) (OTCQX: LGORF) is pleased to announce the launch of VPURE and VPURE+, newly developed brands for the Company's industry preferred line of vanadium products.
Paulo Misk, President and Chief Executive Officer of Largo stated: "Largo's vanadium products have an exceptional industry reputation worldwide. With our vanadium products now branded, new and existing customers can easily identify the Company's products offered for purchase in the market. He continued: "The Maracás Menchen Mine has a proven track record of operational stability which allows the Company to provide its customers with a reliable source of vanadium supply. We look forward to becoming the industry preferred supplier of vanadium through the sale of our VPURE and VPURE+ products."
Largo's VPURE and VPURE+ products are sourced from one of the highest-grade vanadium deposits in the world using proven operational technology. A summary of Largo's VPURE and VPURE+ products and associated specifications are listed below:
VPURE Flakes | Ferrovanadium powered by VPURE Flakes
The VPURE brand consists of high-quality vanadium products which are mainly used to produce ferrovanadium and vanadium carbon nitride.
VPURE Flakes have a guaranteed vanadium content of 98.5% and typical vanadium content of 99.0%.
Ferrovanadium powered by VPURE Flakes achieves grade specifications in the range of 78.0% to 82.0% vanadium.
Ferrovanadium powered by VPURE Flakes is essential in the production of steel products, which make up approximately 91% of global vanadium consumption.
VPURE+ Flakes | VPURE+ Powder
The VPURE+ brand consists of high purity vanadium products in the form of flakes and powder.
VPURE+ Flake and Powder products have a guaranteed vanadium content of 99.0% and a typical vanadium content of 99.5%.
VPURE+ Flakes are mainly used in the production of master alloys.
VPURE+ Powder is ideal to produce chemicals, catalysts and vanadium electrolyte used in the vanadium redox flow battery (VRFB).
Read more at:
https://www.largoresources.com/investors/news/press-release-details/2020/Largo-Resources-Launches-VPURE-and-VPURE-Vanadium-Products/default.aspx
Thank you for this article. I fully agree with the conclusions!!
VIC Write Up Dated 06/26/19 for anyone interested. Good luck everybody.
https://www.valueinvestorsclub.com/idea/LARGO_RESOURCES/5766898219
There are so many good things going on here I managed to get myself excited. The last time that happened I bought Attis at 1.75. Two completely different investments but the same gut feeling. Since I'm planning on buying at .80, you should probably wait for it drop to .30. That's how I prefer to start all my long-term investments, down 70%. Thanks for the response and good luck out there :)
I've been thinking about it. I'm still sitting on all the shares I bought at $.12. I'm not selling...
Good Luck To All!$!$
Are you still accumulating this one?
It is all about the the price expectations of vanadium.....
Very disappointing, Wagner.
It makes me more wondering why Mark Smith left the company.
Looking forward to the next quarter.
Look into the chart, we are at the 2017 support, still possible to go a level deeper ;(((
When will the downwards movement of the SP will be stopped? When the price of vanadium goes up again or is it something else. What do you think?
https://www.largoresources.com/investors/news/press-release-details/2019/Largo-Resources-Appoints-Head-of-Sales-Americas/default.aspx
Largo Resources Appoints Head of Sales, Americas
October 21, 2019
TORONTO, Oct. 21, 2019 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") (TSX: LGO) (OTCQX: LGORF) is pleased to announce the appointment of Francesco D'Alessio as Head of Sales, Americas effective October 21, 2019. In this position, Mr. D'Alessio will support the Company's vanadium sales and trading business with a particular focus on the North and South American markets.
(More at link)
Yes indeed douginil!
Trofee
(Posted this over on Niocorp board, posting here too!)
MS appears to be a busy man!
https://highpurityvanadium.com/about-us
From the USVanadium LLC.
"U.S. Vanadium LLC produces and sells a range of specialty vanadium chemicals, including the highest-purity Vanadium Pentoxide (“V2O5“) in the world. The company is comprised of global leaders and investors in the specialty chemicals and strategic materials sectors, including in the mining, processing, purification, and sales and distribution of vanadium specialty chemicals."
There is no investor information offered and The LLC is comprised of several Investment and industry groups including Lind and probably the three listed individuals (Daniel Harris, Terry Perles, and Mark). I Wonder what the LLC K-1 looks like!)
I wonder if this LLC wasn't one of those things that encouraged the Majority owners of Largo decide to put a bit of distance between them and M.S.! (Whose benefit is he acting on at any one time? Largo Owners? The Vanadium partnerships?) On another level this is what CEOs do,they run around and make connections with other companies (and make money!).
Also from the site:
"New York City (August 12, 2019) – U.S. Vanadium LLC (“US Vanadium”) announced today that it has signed an agreement to acquire Evraz Stratcor Inc. (“Evraz Stratcor”), which owns and operates a Hot Springs, Arkansas facility that produces high-purity vanadium oxides and downstream vanadium chemicals to customers in the catalyst, chemical, petrochemical, titanium, and energy storage industries."
Not certain how it intersects with Titanium, but since its one of the Elk Creek target minerals I am including this here. Perhaps M.S. is developing industry connections for possible eventual processing of Elk Creek minerals? (niobium or scandium for battery applications??)
Largo is up in price today! GLTA
(Off to do things while I have summer!)
Trofee.
Thanks for your analysis!
The Largo website Shows Mr. Misk as CEO. Mark is no longer listed as a board member.
I agree the "thank you" seemed very much of " we have to say something". It seems very strange after the recent video interview which I thought was very good.
Hi Johanna, it was a rather short message and actually expected. Largo is ready to grow! Finances are ok, mgt is ok so why bother and let the guys and woman work according to the main plan.
For me it was expected when I heard that the mgt sold shares quite a while ago.
Mark has two more companies to fully develop in the near future...IBC and NIO.
The news lately released about NIO tells the story that they like to start in 2020 with the construction of the mine. If it is true we will know within a couple af weeks, thats my opinion....
So be back in September....
Trofee;
Thanks for posting link!
Johanna;
This is interesting in view of MS's recent positive video promoting Largo. It did not sound like he had any intention of leaving.
Now one of the things he indicated in the video was that he was proud of the fact that the Largo workforce was pretty much Brazilian. Perhaps this was done in support of that goal? Paulo Misk as COO was presumably already on the board of directors? It does not indicate whether MS will continue to be on the Board.
Perhaps the 2 largest S/Hs were not pleased with the return on their investment? Perhaps Mark decided to step down --something they did not want--to concentrate on Niocorp and this resulted in their rather tepid thank you?
At some point in the near future we need to see if MS is still on their board of directors. If he still is he is still in their good graces. Perhaps Niocorp will issue a statement in the near future about MS's status.
What do you think, Ron?
The 'thank you sentence' with regard to Mark sounds not very reassuring (about what Putz suggested on the Niocorp board).
Perhaps.......... they cannot tell more about why????
240 Year Mine Life Resource Potential?
Mark Smith, "We're going to be here for a very, very long time. Decades, potentially centuries."
*The Campbell Pit has a 9 year reserve life over 1.5 kilometers.
*NAN has a 12 year resource life over 2 kilometers and is open at depth.
*An average of 6 years of life per kilometer.
*The property is a massive 40 kilometers of a known magnetic structure.
*40 kilometers X 6 years = 240 years mine life resource potential.
Not to mention the massive Campo Alegre deposit with similar vanadium samples of around 1%, titanium an astonishing 25%, and more iron ore.
Largo is getting no credit for it's debt free status, it's post Glencore earnings potential, it's valuable byproducts, or the fact that this deposit will be around for many generations to come.
Good Luck To All!$!$
Excellent interview. Thanks for posting the link
RBC Initiates Coverage With Outperform $3.50 CAD Target...
What a great read...
They confirm what management recently stated. Dividends and buybacks are still coming after the Glencore contract expires.
https://rbcnew.bluematrix.com/docs/pdf/e8b1b531-ffbd-4737-9aea-ef2af192f37a.pdf
Good Luck To All!$!$
Largo Terminates Deal With The Devil Countdown...
https://countingdownto.com/?c=2599065
Good Luck To All!$!$
ThyssenKrupp To Import Brazilian (Largo) Vanadium To China$!$
BEIJING (Asian Metal) 29 Aug 19 – ThyssenKrupp Materials Trading Tianjin Co., Ltd. will start to import vanadium pentoxide flake 98%min from Brazil to China from March 2020, which will increase the supply volume by 200tpm to Chinese tight market.
“As domestic prices are higher than international market and the supply keeps tight in spot market for long time, our Brazilian vanadium pentoxide flake supplier plans to supply 200tpm to China from their global supply, which will start from next March,” said the source. According to Asian Metal, current prices of vanadium pentoxide flake are the highest in the global market. It’s about RMB20,000/t (USD1.3/lb V2O5) higher than European market now.
When Brazilian resources come into China market for the first time, ThyssenKrupp Materials Trading Tianjin Co., Ltd. will undertakes the main downstream market development task. They are trying to negotiate long-term supply agreements with potential buyers now.
Currently, mainstream prices of European vanadium pentoxide flake 98%min stand at USD6.9-7.2/lb V205 in warehouse Rotterdam D/A 30 days, up by USD0.1/lb V205; mainstream prices for Chinese vanadium pentoxide flake 98%min stand at RMB130,000-133,000/t (USD8.4-8.6/lb V2O5) EXW D/A 180 days, unchanged from last week.
https://www.vanadiumprice.com/brazilian-vanadium-pentoxide-flake-to-import-to-china/
Good Luck To All!$!$
Largo Competitor To Suspend V2O5 Production...
I want to make it clear my intentions are not to promote another company on this board. I simply found the market commentary insightful and of relevance to Largo.
I own Largo, not Energy Fuels. I'm not considering buying Energy Fuels stock but I am considering buying more Largo for the first time in years.
The following are comments made by Energy Fuels for Q219.
To Summarize:
*At full production, they produce up to 200,000 pounds per month of high purity vanadium.
*Cost of production is at or near the current V2O5 spot price (as of August 2, 2019) not including fixed Mill overhead.
*They plan to stockpile V2O5 production through Q319 with limited sales.
*The company will suspend V205 production at the end of Q319 unless prices improve dramatically.
*They do expect prices to increase in the future and have 600,000 pounds of inventory.
.........................................................................
"During Q2-2019, a disparity between V2O5 prices in China versus Europe began to develop, which accelerated into July 2019. According to weekly price data from Metal Bulletin, the mid-point spot price for V2O5 in China was $13.50 per pound on March 28, 2019 and $8.00 per pound of V2O5 on June 28, 2019, representing a drop of 41% during the quarter. By August 1, 2019, the spot price in China had risen back to $9.25 per pound of V2O5. During the same period, according to weekly price data from Metal Bulletin, the mid-point spot price for V2O5 in Europe was $12.63 per pound on March 28, 2019 and $7.48 per pound of V2O5 on June 28, 2019, again representing a drop of 41%. However, by July 26, 2019, the spot price in Europe had further dropped to $7.10 per pound of V2O5. As can be seen from the month-end data for July, vanadium prices in China were approximately 7% higher than in Europe. However, by August 2, 2019, the gap widened considerably, as the V2O5 price in China was approximately 23% higher than in Europe.
The Company believes a shortage of raw material in China continues due to production cutbacks and new potential demand due to the rebar standards implemented in China in late-2018. After the announcement of the new standards, global vanadium prices rose significantly to $28.83 per pound in Europe and $32.00 per pound in China. However, as vanadium prices rose to multi-year highs, the Company believes Chinese steel mills began to substitute niobium for vanadium, thereby causing demand for vanadium, and hence prices, to drop off their highs. In recent weeks, the Company believes niobium substitution has abated, and that this, combined with recently reported strong growth in China, has firmed vanadium prices in China, causing the 23% disparity between Chinese and European prices being observed today. At the same time, the Company believes that the European and Russian steel industries are stressed, mainly due to the effects of sanctions on Russia and tariffs in the U.S. This has created less demand, and hence lower prices, for vanadium in Europe and Russia. Because of continued tightness in China, it is the Company’s belief that Russian and European producers and traders may redirect some of their vanadium stocks into China, thereby leading to higher prices in Europe and possibly somewhat lower prices in China.
The Company believes that in 2018, global production cutbacks caused vanadium supply to fall below demand, thereby creating a deficit in the market, leading to significant price increases. In the short term, the Company believes that the market dynamics that led to the increased prices in 2018 generally still exist, including increased demand due to new Chinese rebar standards, continued economic growth in China, and decreased supply due to environmental regulations. However, as vanadium prices rise, substitution (primarily niobium) is likely to continue to occur, thereby moderating potential price increases somewhat. In addition, Russian, European, and US steel industries are experiencing lower levels of activity, which is also likely to have a moderating influence on further price increases. Longer-term, the Company expects vanadium prices to continue to be volatile, and mainly dictated by policies in, and the economy of, China. The Company also believes there could be increased demand for vanadium in the energy storage industry.
Vanadium production totaled 437,000 pounds of V2O5 for the quarter, and the Company expects to continue to produce 160,000 to 200,000 pounds of V2O5 per month through Q3-2019, subject to continued successful recovery and suitable sales prices.
The Company completed 98,000 pounds of vanadium sales into the steel industry during the quarter at an average price of $7.87 per pound of V2O5, following conversion of the Company's V2O5 product into ferrovanadium. At the current time, the Company is selling only small quantities of vanadium, while mainly focusing on building V2O5 inventory for sale in the future as the Company expects prices to increase.
"We are also very happy with our vanadium production campaign; except prices failed to cooperate during the quarter. We brought our vanadium product to market very quickly and achieved extremely high purities. But, as it turned out, it wasn't quick enough. At the current time, we expect to continue producing vanadium through Q3-2019, due in large part to seasonal considerations, while only making selective sales. We are also moving forward with discussions to potentially sell our product at premium pricing to customers who require higher purities. If vanadium prices do not make a dramatic recovery in the next few months, we expect to build inventory to capture future price spikes and then shut down production to save this valuable asset for later recovery.
The Company also recovered approximately 760,000 pounds of high-purity vanadium pentoxide ("V2O5" or "black flake") during the six months ended June 30, 2019 and expects to continue to recover approximately 160,000 to 200,000 pounds of V2O5 per month during the third quarter of 2019, at which time the Company expects to place vanadium recovery operations at the Mill on standby, pending improvements in vanadium prices.
The Company is currently producing at full production rates of 160,000 to 200,000 pounds of V2O5 per month and approximately 6,500 pounds of U3O8 per month under this program. The Company expects to continue to recover vanadium and uranium at these rates during the third quarter of 2019, at which time the Company expects to place this program on standby, pending improvements in vanadium prices and taking into account seasonal considerations. Despite currently low vanadium prices, the Company plans to continue this program through the end of the third quarter of 2019, rather than place it on standby at this time, for two reasons: first, vanadium recoveries from Pond Returns are highest in the warm summer months, due to the higher concentrations of dissolved vanadium in the solutions as a result of the normal evaporative process during the warm summer months and other chemical reasons, thereby enabling us to produce vanadium at the lowest cost possible, with the marginal cost of production not including fixed Mill overhead currently at or near spot V2O5 prices; and secondly, the Company believes the price of vanadium is likely to increase at some point in the future, and running the program through the end of the third quarter will provide the Company with a significant quantity of V2O5 produced that can be sold opportunistically as future price volatility occurs. One of the benefits of the Mill's vanadium Pond Return program is that it can be stopped and restarted relatively quickly in response to changes in vanadium market conditions.
The Company continued V2O5 shipments during the six months ended June 30, 2019 with initial quantities being allocated for conversion to ferrovanadium ("FeV"), which was sold into spot metallurgical markets on a selective basis. At the current time, the Company is selling only small quantities of vanadium, while mainly focusing on building V2O5 inventory for sale in the future as prices are expected to increase. During the six months ended June 30, 2019, the Company completed sales of 150,000 pounds of vanadium at an average price of $12.83 per pound. The Company expects to continue to sell finished vanadium product when justified into the metallurgical industry, as well as other markets that demand a higher purity product, including the aerospace, chemical, and potentially the vanadium battery industries. The Company expects to sell to a diverse group of customers in order to maximize revenues and profits. The Company is continuing to produce a high-purity vanadium product of 99.6%-99.7% V2O5. The Company believes there may be opportunities to sell certain quantities of this high-purity material at a premium to reported spot prices. The Company may also retain vanadium product in inventory for future sale, depending on vanadium spot prices at the time of production."
https://www.sec.gov/Archives/edgar/data/1385849/000138584919000049/efr-2019063010xq.htm
Good Luck To All!$!$
Largo Gives Notice To Terminate Glencore Agreement...
Largo Resources Announces Notice to Terminate its Off-take Agreement
August 20, 2019
TORONTO, Aug. 20, 2019 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") (TSX: LGO) (OTCQX: LGORF) announces that it has formally given notice to Glencore International AG ("Glencore") of the nonrenewal of its off-take agreement dated May 14, 2008. In accordance with this notice, the off-take agreement will expire effective April 30, 2020.
Mark Smith, Chief Executive Officer stated: "Our current off-take agreement was instrumental in securing the initial financing for the construction of the Maracás Menchen Mine and allowed the Company to focus solely on producing among the highest purity vanadium in the world. Largo remains one of the lowest-cost vanadium producers in the industry with an established track record of operational performance highlighted by the Company's new monthly V2O5 production record of 1,042 tonnes in July and global V2O5 recoveries of 80.9% exiting Q2 2019."
He continued: "With the appointment of Mr. Paul Vollant as Director of Sales and Trading, the Company will continue developing its internal sales and trading business to further enhance Largo's presence as the leading vanadium supplier for premium applications. This transition marks a transformative moment in the Company's history and we will continue to focus on maximizing value for all of our shareholders with the new sales and trading business."
https://www.largoresources.com/investors/news/press-release-details/2019/Largo-Resources-Announces-Notice-to-Terminate-its-Off-take-Agreement/default.aspx
Good Luck To All!$!$
Johanna, Slashnuts:
thank you for the updates! (Still holding on to my Largo shares)
European V2O5 Prices Surge More Than 10%!$!$
Further gains expected net week...
Glencore Offtake Countdown Clock...
https://countingdownto.com/?c=2576217
Good Luck To All!$!$
China Begins Importing Vanadium From Europe!$!$
Wide China-Europe ferro-vanadium price gap attracts European cargoes to China
The wide differential between ferro-vanadium prices in China and Europe has prompted some European vanadium suppliers to deliver their cargoes to China to take advantage of the more favorable price in the Asian country, market sources told Fastmarkets.
Fastmarkets’ price for ferro-vanadium, 78% V min, fob China, is $35-37 per kg as of July 18, up from $34.50-36.50 per kg in the prior week. Meanwhile, Fastmarkets assessed the price of ferro-vanadium, basis 78% V min, 1st grade, ddp Western Europe, at $29.55-31.05 per kg on July 19, up slightly from $29-30 in the previous assessment. This leaves a price gap of $5.45-5.95 per kg between the Chinese and European markets. The higher Chinese price has attracted some European vanadium suppliers...
https://www.metalbulletin.com/Article/3884981/Vanadium/Wide-China-Europe-ferro-vanadium-price-gap-attracts-European-cargoes-to-China.html
Good Luck To All!$!$
European Vanadium Up 2.7% On Rise In Spot Activity
https://www.metalbulletin.com/Article/3884782/Vanadium/NOBLE-ALLOYS-MARKET-REPORT-1907-Ferro-vanadium-up-27-on-rise-in-spot-activity.html
Reports last week of V2O5 being offered at $8, $9 and $10 per pound in Europe!
– Offer at $10 per lb in Europe
– Offers at $8.7-9.05 per lb in Europe
– Offer at $8.8 per lb in Europe
– 3 tonnes bid at $8.3 per lb in Europe
https://www.vanadiumprice.com/trade-log-july-2019-ferro-vanadium-v2o5-3/
Chinese Environmental Teams Conducting Month Long Inspections...
"On the afternoon of 15 July, the second central ecological environment protection inspection team held the central ecological environment protection inspection mobilization meeting in Fuzhou. So far, all inspection teams of the first batch of the second round central ecological environment protection inspection were in place. As arranged, the inspection will last for one month. "
Chinese Vanadium Producer Halts Production Due To Environmental Issue
BEIJING (Asian Metal) 19 Jul 19 – Due to serious environmental protection situation, Tangshan Yiliansheng Roll Co., Ltd., with an annual demand of 360t of ferrovanadium, halted production early this week. The company plans to resume production two months later and suspend ferrovanadium purchase during the suspension, a source told Asian Metal.
“Currently, all foundry enterprises in Tangshan are out of production with the main reason of serious environmental protection. We also shut down the production line early this week. Now, the inventory of ferrovanadium can support production for a month,” said the source. The company uses hot rolling technology and takes many kinds of ferroalloys including ferrovanadium as raw material. It is out of production now and waits on the sidelines and all the purchasing plan of raw material is put off until the resumption of production.
https://www.vanadiumprice.com/yiliansheng-roll-halts-production-for-maintenance-and-suspends-ferrovanadium-purchase/
Raw Materials Scarce In China
"The price of vanadium has risen, traders are eager to make inquiries, and alloy factories have received few orders in recent two days. Because raw materials are not easy to purchase, some manufacturers no longer accept orders; a small number of manufacturers can accept orders, but the offer from raw material end is on the high side."
Chinese Traders Reporting Tight Supply, No spot Material, Higher Prices Next Week!
BEIJING (Asian Metal) 19 Jul 19 – Currently, mainstream transaction prices for Chinese vanadium pentoxide flake 98%min are (USD8.2-8.4/lb V) Suppliers intentionally hold back from selling, so the spot supply is relatively tight now. Market players believe Chinese vanadium pentoxide flake prices would keep firm in the coming week.
A trader in Northwest China said now their company mainly sells the previous inventory and doesn’t accept orders with prices less than (USD8.4/lb V) for vanadium pentoxide flake 98%min, He said, “This Thursday, a buyer sent an enquiry and wanted to buy 30t of spot vanadium pentoxide flake 98%min at (USD8.2/lb V), but I rejected him.” He revealed, “At present, large-sized plants don’t sell in large quantity, so it is hard to buy spot material. Thus, I believe prices would go up by at least (USD0.2/lb V) in the coming week.” The company made its last deal early this week and bought 20t of vanadium pentoxide flake 98%min at (USD8.2/lb V)
A consumer in South China said that now the spot prices for vanadium pentoxide flake 98%min he has received from suppliers are all around (USD8.4/lb V) up by (USD0.2/lb V) from last week. He said, “Currently, large-sized plants mainly produce for long-term orders and there is no spot supply, so we have to buy spot material from traders. We made our last purchase late last week and bought 20t of vanadium pentoxide flake 98%min at (USD8.2/lb V) He added, “Due to the continuous increase of vanadium pentoxide flake prices and tight spot supply, we have to purchase ammonium metavanadate 98%min for replacement. As the supply is tight in market, he expects prices for Chinese vanadium pentoxide flake would move up to (USD8.6/lb V) in the coming week.
https://www.vanadiumprice.com/chinese-vanadium-pentoxide-flake-prices-increase-6/
Manufacturers are Reluctant to Sell and Vanadium Prices Have Edged Up This Week
BEIJING (Asian Metal) 19 Jul 19 – Currently, mainstream transaction prices for Chinese vanadium pentoxide powder 98%min stay at (USD8.2-8.5/lb V) up by (USD0.1/lb V) from last week. He said, “Now suppliers keep raising their quotations. When we made purchases directly from producers, we always encounter traders who compete against us with higher prices.
He said, “Now spot supply of the material is tight. We purchased 30t of vanadium pentoxide powder 98%min at (USD8.3/lb V) late last week, and are in no hurry to make sa.es now.” He added, “We received an enquiry from a client who intended to buy all the material (USD8.4/lb V). We required the client to make a 100% down payment, while they insisted in making the payment one week after they have received the material. Finally the deal was not concluded.” Owing to tight market supply, the source believes that prices for Chinese vanadium pentoxide powder would stay firm in the coming week.
Good Luck To All!$!$
Here is an article about Largo by Burt Rothberg
https://seekingalpha.com/article/4275782-largo-resources-survive-vanadium-collapse
Largo Reports Strong Q219 Production Results!$!$
Largo Resources Reports Strong Second Quarter 2019 Production Results
July 10, 2019
Q2 2019 V2O5 production of 2,515 tonnes, an increase of 20% over Q1 2019 and 2% over Q2 2018
Record monthly V2O5 production of 926 tonnes achieved in June
Successful start to expansion project ramp-up; Commissioning and ramp-up expected to conclude in Q3 2019
Global V2O5 recovery rate of 79.1% in Q2 2019; Second quarter of strong global recoveries in 2019
Q2 2019 financial results conference call: Wednesday, August 14th, 2019 at 11:30 a.m. EDT
TORONTO, July 10, 2019 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") (TSX: LGO) (OTCQX: LGORF) is pleased to announce second quarter 2019 production results from its Maracás Menchen Mine with 2,515 tonnes of vanadium pentoxide ("V2O5") produced at an average global recovery rate1 of 79.1%.
Total production in Q2 2019 from the Maracás Menchen Mine was 2,515 tonnes of V2O5 representing an increase of 20% over Q1 2019 and a 2% increase over Q2 2018. In addition, the Company achieved a new monthly V2O5 production record of 926 tonnes in June as a result of greater operational stability at the plant in addition to the optimization of the new and existing deammoniators as part of the commissioning and ramp-up phase of the Company's expansion project. Lower V2O5 production of 755 tonnes in April was impacted by the restart of operations following the kiln refractory replacement which was completed on March 31, 2019.
Global V2O5 recovery1 rates averaged 79.1% during the quarter are in line with Q2 2018 and demonstrate another strong quarter of global recoveries1 for the Company.
The expansion project to increase production capacity at the Maracás Menchen Mine by 25% from 800 tonnes of V2O5 per month to 1,000 tonnes continues to advance successfully. The Company plans to install an additional ball mill in August and expects to finalize the commissioning and ramp-up phase in Q3 2019, reaching the new nameplate capacity of 1,000 tonnes of V2O5 per month in Q4 2019.
Mark Smith, Chief Executive Officer of Largo, stated: "I am very pleased with the operational performance demonstrated in Q2 2019 highlighted by another quarter of strong global recoveries1 and a new monthly production record achieved in June. He continued: "With additional production being realized as a result of the expansion project ramp-up, we look forward to finalizing the installation of the new ball mill and completing the commissioning and ramp-up phase of the expansion project in Q3 2019 to reach the new nameplate capacity of 1,000 tonnes of V2O5 per month in Q4 2019."
https://largoresources.com/investors/news/press-release-details/2019/Largo-Resources-Reports-Strong-Second-Quarter-2019-Production-Results/default.aspx
Good Luck To All!$!$
Slashnuts, Douginil;
Nice to have Ownership in a mining company that is actually debt free and whose product is in demand! Glad I held on. Looking forward to the rest of the year!
Closed at $1.49 USD today.
Largo Resources Announces Debt-Free Status Following Redemption of all its Outstanding 9.25% Senior Secured Notes
TORONTO, July 8, 2019 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") (TSX: LGO) (OTCQX: LGORF) is very pleased to announce that in accordance with its press release dated June 10, 2019, in which the Company announced its election to redeem its outstanding 9.25% Senior Secured Notes due 2021 (the "Notes"), the Company has redeemed in full all of its outstanding Notes. The Notes have been redeemed at a redemption price equal to 104.625% of the principal amount of the Notes plus accrued and unpaid interest to, but not including the redemption date of July 8, 2019.
Mark Smith, Chief Executive Officer stated: "I am extremely pleased to announce that Largo is now debt-free. This full repayment represents a significant milestone for the Company and we look forward to the future as Largo continues to enhance its presence in the global vanadium market."
Read more at:
https://www.largoresources.com/investors/news/press-release-details/2019/Largo-Resources-Announces-Debt-Free-Status-Following-Redemption-of-all-its-Outstanding-925-Senior-Secured-Notes/default.aspx
Vanadium Market Has Stabilized, Supplies Are Limited...
7/8/19...
From the end of last week to the beginning of this week, raw material inquiries have increased, vanadium alloy plants are active in purchasing ammonium metavanadate and V2O5 flake. At present, the transaction price of V2O5 flake in bulk market is about CNY 120,000-122,000/t by cash, but the supply is limited. The spot of ammonium metavanadate is also tight, and last week’s transaction price is CNY 122,000/t by cash. According to manufacturers, downstream alloy factories have more orders and are optimistic about the future market.
At present, the cash price of vanadium-nitrogen alloy in bulk market is CNY 185,000/t. Due to the active purchasing of raw materials, the market has stabilized.
https://www.vanadiumprice.com/vanadium-price-stops-dropping-and-market-inquires-have-increased/
Good Luck To All!$!$
News: $LGORF Largo Resources Announces Results of Annual and Special Meeting of Shareholders
Largo Resources Announces Results of Annual and Special Meeting of Shareholders Canada NewsWire TORONTO, June 28, 2019 TORONTO , June 28, 2019 /CNW/ - Largo Resources Ltd. (" Largo " or the " Company ") (TSX: LGO) (OTCQX: LGORF) announces voting results from its Annu...
Got this from https://marketwirenews.com/news-releases/largo-resources-announces-results-of-annual-and-special-meeting-8429452.html
Thank you Johanna!
"Given this strategic prioritization, the lower vanadium price environment, anticipated working capital requirements for its new sales and trading business, repayment of the remaining outstanding Senior Secured Notes, and the previously disclosed remeasurements resulting from the terms of the Company's current off-take agreement, the Company has adopted the conservative strategy of not returning capital to shareholders at this time. "
I have no problem with Mark's conservative approach.
The company is debt free. They are the only stock I hold that is. At some point I do, however, expect to be rewarded with either a higher share price or dividends.
Followers
|
33
|
Posters
|
|
Posts (Today)
|
0
|
Posts (Total)
|
740
|
Created
|
06/16/07
|
Type
|
Free
|
Moderators |
Volume | |
Day Range: | |
Bid Price | |
Ask Price | |
Last Trade Time: |