Q3 2023 Highlights and Production Results
Largo Inc. (TSX: LGO) (NASDAQ: LGO) reports Q3 2023 production of 2,163 tonnes (4.8 million lbs) of vanadium pentoxide (“V2O5”). Despite setbacks due to a chemical plant accident and delays in a new magnetic separator, production and cost guidance for 2023 remain unchanged.
Production and Recovery Rates
V2O5 production reached 2,163 tonnes, with a global recovery rate of 76.9% in Q3 2023, down from 80.7% in Q3 2022. V2O5 equivalent sales totaled 2,385 tonnes, showing a 17% decrease from Q3 2022. The average benchmark price per lb of V2O5 in Europe was $8.03.
Clean Energy Milestones
Largo Clean Energy completed site acceptance testing of its Enel Green Power España 6.1 MWh vanadium redox flow battery (“VRFB”) and expects provisional acceptance in Q4 2023. The company maintains its 2023 guidance for production, sales, costs, and capital expenditures.
Operational and Safety Measures
Despite higher mining throughput in Q3 2023, production was impacted by an accident in the chemical plant and crushing circuit availability issues. Daniel Tellechea, Interim CEO, emphasizes safety as the top priority and pledges to strengthen operational efficiencies.
Global Recovery and Sales Overview
Global recovery in Q3 2023 decreased to 76.9%, with spot demand softening due to challenges in the Chinese and European steel industries. V2O5 equivalent sales remained geographically diversified, with North America and Europe each representing approximately one third of total sales.
Operational Restructuring and New COO
Effective October 9, 2023, Celio Pereira assumed the role of Chief Operating Officer (COO) of Largo Vanádio de Maracás S/A. The appointment follows the departure of Álvaro Resende, and Celio’s operational expertise is expected to enhance efficiency.
About Largo
Largo is a global vanadium company known for high-quality VPURETM and VPURE+TM products from its Maracás Menchen Mine in Brazil. The company focuses on maintaining its position as a leading vanadium supplier while evaluating its U.S.-based clean energy business, including VCHARGE vanadium battery technology.
Source：businesswire.com
