Largo Resources Announces Record Operational Performance in Q3 2020 with V2O5 Production of 3,092 Tonnes and Lowers 2020 Cost Guidance
October 19, 2020
- Record V2O5 production of 3,092 tonnes (6.8 million lbs1) in Q3 2020, a 5.0% increase over Q3 2019 - Total sales exceeded production levels in August and September 2020 for the first time since commercial independence, highlighting successful rollout of the Company's strategy - Record global V2O5 recovery rate2of 84.2% in Q3 2020, an increase of 8.0% over Q3 2019 - 2020 cash cost guidance reduced: Cash operating cost excluding royalties3 guidance lowered to US$2.60 – $2.80 / lb V2O5; Total cash cost3 guidance lowered to US$3.20 to $3.40 / lb V2O5 - Postponing cost-efficient nameplate capacity increase to Q1 2021: Planned kiln upgrades and cooler maintenance that will increase Largo's production capacity by 10% with a CAPEX of only US$1.3 million are postponed to Q1 2021 due to COVID-19 restrictions - Focus on safe business continuity: On track to meet lower end of 2020 production guidance with strong production results expected in Q4 2020; 2020 sales guidance maintained - Strong vanadium demand in Q3 2020 in China from increased infrastructure spending on the back of recently announced stimulus packages as well as development of green technology applications to meet carbon footprint reduction targets
Largo's line of VPURE+™ products are among the highest purity vanadium flake and powder products, globally. (CNW Group/Largo Resources Ltd.)
TORONTO, Oct. 19, 2020 /CNW/ - Largo Resources Ltd. ("Largo" or the "Company") (TSX: LGO) (OTCQX: LGORF) is pleased to report third quarter 2020 production and global sales results from its Maracás Menchen Mine highlighted by a new quarterly production record of 3,092 tonnes (6.8 million lbs1) of vanadium pentoxide ("V2O5") and a new record global recovery rate2 of 84.2%.
Paulo Misk, President and Chief Executive Officer for Largo, stated: "The health and safety of our workforce continues to remain a top priority for Largo and our focus on preventative measures early on has enabled the Company to continue operations in a safe manner since March 2020. In Q3 2020, operations performed exceptionally well with the Company achieving a new quarterly V2O5 production record of 3,092 tonnes and a new quarterly global recovery2 rate record of 84.2%.
The Company has also reduced its cash operating cost excluding royalties and total cash cost guidance for 2020 to US$2.60 - $2.80 and US$3.20 - $3.40 / lb V2O5, respectively. This reflects our positive year-to-date performance and the Company's expectations for the balance of the year. Additionally, the Company is on track to meet the lower end of its 2020 production guidance of 11,750 – 12,250 tonnes of V2O5 and we look forward to ending the year on another high note. I am very proud of the entire operations team as they continue to demonstrate their ability to effectively meet and exceed operational targets, especially during these uncertain times."
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