Largo Resources Provides Operational Update; Reports Strong V2O5 Production of 3,260 Tonnes in Q3 2021
Oct, 20, 2021
All amounts expressed are in U.S. dollars, denominated by “$”.
- V2O5 production of 3,260 tonnes (7.2 million pounds1) in Q3 2021, a 5% increase over Q3 2020 and 6% above Q2 2021 - Total V2O5 equivalent sales of 2,685 tonnes in Q3 2021, a 16% increase over Q3 2020 and 11% below Q2 2021 due to logistical challenges - Largo Clean Energy (“LCE”) selected to receive $4.2 million in funding from the Department of Energy (“DOE”) to scale up U.S.-based manufacturing of flow battery and long duration storage systems; Receipt of funding is subject to the completion of the award negotiation with the DOE - On July 30, 2021, LCE received a notice to proceed (“NTP”) on its previously announced sales contract with Enel Green Power España (“Enel”) for the delivery of a 5 hour 6.1 MWh VCHARGE± system located in Spain - Revised 2021 production and sales guidance: Production guidance lowered to 11,400 to 11,800 tonnes of V2O5 equivalent from 12,000 to 12,500 tonnes; Sales guidance lowered to 11,200 to 11,800 tonnes of V2O5 equivalent from 12,250 to 12,750 tonnes - Demand in all of the Company’s key vanadium markets remained strong in Q3 2021: Average Fastmarkets European V2O5 price of approximately $9.40 per lb in Q3 2021, a 76% increase over the average in Q3 2020
TORONTO--(BUSINESS WIRE)-- Largo Resources Ltd. ("Largo" or the "Company") (TSX:LGO) (NASDAQ:LGO) announces quarterly production of 3,260 tonnes (7.1 million lbs1) of vanadium pentoxide (“V2O5”) and sales of 2,685 tonnes of V2O5 equivalent from its Maracás Menchen Mine in Q3 2021.
Paulo Misk, President and Chief Executive Officer of Largo, stated: “The Company remains well positioned to continue making headway on the suite of value-add projects in our pipeline. This quarter we received a NTP on our first battery sales contract with Enel and are progressing on schedule with the build out of LCE’s product development and stack manufacturing facility in Massachusetts with an expected annual capacity of 1.4 GWh. We look forward to a strong finish to the year and remain fully committed to driving the world’s transition to a low-carbon future through innovative energy storage solutions powered by our responsibly produced vanadium.” He continued: “On the operational front, our performance improved in Q3 2021 as highlighted by a 5% increase in production over Q3 2020 and a 6% increase over Q2 2021. The strong production performance during the quarter was largely driven by increased throughput and improved recoveries following the completion of the Company’s expansion project in Q2 2021. Despite improved production results and steady vanadium demand in all regions, the Company experienced logistical challenges which resulted in lower sales for the quarter.”