Largo Inc (LGO)

[douginil]

Largo Resources Reports V2O5 Production of 2,562 Tonnes in Q2 2020 and Announces Cost Efficient Nameplate Capacity Increase by 10%

July 16, 2020

- V2O5 production of 2,562 tonnes (5.6 million lbs1) in Q2 2020, a 2.0% increase over Q2 2019
- Global V2O5 recovery rate2 of 80.8% in Q2 2020 compared to 79.1% in Q2 2019
- Nameplate capacity increase by 10%: Planned kiln upgrades and cooler maintenance scheduled for Q4 2020 with a capex of US$1.3 million
- First independent vanadium shipment made on May 14, 2020
- Operations at the Maracás Menchen Mine continued in Q2 2020; 2020 guidance maintained on a "business as usual" basis

TORONTO, July 16, 2020 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") (TSX: LGO) (OTCQX: LGORF) announces second quarter 2020 production results from its Maracás Menchen Mine with production of 2,562 tonnes (5.6 million lbs) of vanadium pentoxide ("V2O5") produced at an average global recovery rate2 of 80.8%.

The Maracás Menchen Mine (CNW Group/Largo Resources Ltd.)

Paulo Misk, President and Chief Executive Officer for Largo, stated: "Following the completion of the enhanced preventative maintenance program in the chemical plant, the Company's operations performed well in Q2 2020 with total V2O5 production of 2,562 tonnes and a global V2O5 recovery rate of 80.8%. This represents a 2.0% increase in production over Q2 2019 and the strong production in May and June further demonstrates the plant's ability to perform above its current nameplate capacity of 1,000 tonnes of V2O5 per month. In Q4 2020, we expect to perform the planned upgrades to the kiln and improvements in the cooler to increase the nameplate capacity to 1,100 tonnes of V2O5 per month. The total capex for this project is approximately US$1.3 million and we do not expect this work to impact production in Q4 2020."

He continued: "We completed our first independent vanadium shipment on May 14, 2020 marking a propitious moment for the Company as we begin to capture the full economic and strategic value associated with our transition to commercial independence. The Company continues to maintain its 2020 guidance on a business as usual basis and has not experienced any significant impacts to operations or to the shipment of material as a result of the global COVID-19 pandemic. We continue to prioritize the health and safety of our workforce and extend our support to our local communities as we proactively manage the circumstances related to the global COVID-19 pandemic."


Read at:
https://www.largoresources.com/investors/news/press-release-details/2020/Largo-Resources-Reports-V2O5-Production-of-2562-Tonnes-in-Q2-2020-and-Announces-Cost-Efficient-Nameplate-Capacity-Increase-by-10/default.aspx