Largo Resources has revealed record production of vanadium for Q4 2018. Production at its Maracás Menchen mine in Brazil went up 2% year on year reaching 2,595 tonnes.
This helped drive a record full year production of 9,830 tonnes. This represents an increase of 6% over 2017 and is the strongest full year of production from the mine since operations commenced in 2014.
The Company's V2O5 total production for 2019 will range between 10,000 and 11,000 tonnes which is inclusive of high-purity vanadium flake and high-purity vanadium powder production.
Mark Smith, CEO of Largo Resources commented:"Largo's ability to consecutively increase its production at the mine is a testament to the very skilled operations team at Maracás and has enabled the Company to exceed its midpoint guidance of 9,650 tonnes of V2O5 for the year. We are also very proud to report yet another quarterly production record from the Maracás Menchen Mine in addition to a new record of full year production for 2018.
"During the year ahead, Largo will continue its focus on profitability and looks forward to reaping the benefits of the increased production rate as a result of the Company's ongoing expansion project. The expansion project to increase nameplate production capacity to approximately 1,000 tonnes of V2O5 per month is progressing on time and the Company expects to reach the new nameplate capacity rate in Q3 2019."
On the back of the Company's solid production growth in 2018, vanadium prices soared approximately 156% but have recently receded to the range of $15.50-16.00/lb. This reported price range for vanadium is presently up 38% when compared to the same period last year and Largo continues to believe as a result of the structural supply deficit, an elevated pricing environment should remain for the metal in the short-term.
Largo Resources is a Toronto-based strategic mineral company focused on the production of vanadium flake, high purity vanadium flake and high purity vanadium powder at the Maracás Menchen mine located in Bahia State, Brazil.