Largo Inc (LGO)

[Slashnuts]

Largo To Lease Vanadium Electrolyte?

With wild fluctuations in the price of vanadium, my concern is the lack of stability in pricing could have an adverse effect on the adoption of vanadium redox batteries. However, Mr. Arias addressed this very issue in a recent article.

"One of the key areas of discussion to arise from the meeting stemmed from a presentation by J. Alberto Arias, Founder of Arias Resource Capital Management LP in New York regarding leasing vanadium electrolyte.  Vanadium is the largest cost component of the vanadium redox flow battery (VRFB) and in the past, supply and demand shocks have had significant volatility impacts on vanadium prices which could impact on the economic viability of the product going forwards.  As vanadium electrolyte does not degrade, a solution, Mr. Arias explained, could be to lease the electrolyte or the vanadium for the battery’s useful life."

http://www.vanitec.org/vanadium/Press-Releases

There's also an indication from Vionx to "spread out the upfront costs" in order to encourage VRFB growth. Will Largo lease vanadium to Vionx?

"But, according to Vieau, if you spread out the upfront costs over decades and attach the system to a solar farm, the redox flow battery will be able to store and generate electricity at half the price of burning diesel."

http://www.wbur.org/bostonomix/2017/01/09/vanadium-liquid-energy-storage

I can't help but wonder if Vionx is the current buyer of some of Largo's high purity, battery grade, V2O5.
They're doing something behind the scenes with all that cash, that's for sure.

Total Offering Amount
$21,500,000
USD
or
  
Indefinite
Total Amount Sold
$21,500,000
USD


https://www.sec.gov/Archives/edgar/data/1644396/000164439617000001/xslFormDX01/primary_doc.xml

Then there's this from the "high purity qualification" PR.

"For Largo, the qualification is an important step in ensuring that its product becomes the product of choice in value added specialty applications for vanadium pentoxide including applications in the titanium industry, the chemical and catalyst industries, and the developing energy storage markets."

http://www.largoresources.com/English/investors/news/news-release-details/2017/Largo-announces-qualification-of-its-vanadium-for-use-in-production-of-titanium-master-alloys-in-the-aerospace-industry/default.aspx

Maybe Mr. Arias was referring to Vionx as the potential leaser and not Largo? Not sure, just trying to connect the dots here. Thoughts?

Good Luck To All!$!$!$