Largo Announces Filing of Technical Report for the Updated Life of Mine Plan and Pre- Feasibility Study on its Maracás Menchen Mine
Largo Announces Filing of Technical Report for
the Updated Life of Mine Plan and Pre-
Feasibility Study on its Maracás Menchen Mine
All amounts expressed are in U.S. dollars, denominated by “$”
TORONTO--(BUSINESS WIRE)--December 20, 2021--Largo Inc. ("Largo" or the "Company")
(TSX: LGO) (NASDAQ: LGO) is pleased to announce it has filed its National Instrument 43-
101 (“NI 43-101”) technical report titled An Updated Life of Mine Plan (“LOMP”) for Campbell
Pit and Pre-Feasibility Study for GAN and NAN Deposits, dated December 16, 2021 (the
“Technical Report”), in respect of the Company’s Maracás Menchen Mine in Brazil. The
Technical Report supports the disclosure made by the Company in its press release dated
November 3, 2021.
Technical Report Highlights
• Enhanced Profitability and Market Competitiveness: The phased operational approach
outlined in the Technical Report is expected to unlock the ability to allocate operating
costs between vanadium pentoxide (“V2O5”) and titanium dioxide (“TiO2”) in a manner
that is expected to drive increased market competitiveness
• Technical Report Indicates $2.8 Billion Pre-Tax / $2.0 Billion After-Tax NPV7% and $5.8
Billion Pre-Tax / $4.2 Billion After-Tax Life of Mine Cash Flow: The materially
enhanced Company profitability forecasted by the Technical Report is driven by
expanded V2O5 production and incremental cash flows generated by the production and
sale of TiO2 pigment as a co-product
• Updated Mine Life of 20 Years: Total operating mine life for the Maracás Menchen Mine
of 20 years following extensive drilling and engineering work performed at the Campbell
Pit, and at the Novo Amparo Norte and Gulçari A Norte deposits, in addition to the
inclusion of TiO2
• Expansion of Vanadium Operations: Current nameplate production capacity of 13,200
tonnes per annum expected to increase to an approximate average of 15,900 tonnes per
annum in 2032
Paulo Misk, President and CEO of Largo, stated: “The phased operational scenarios outlined in
our Technical Report are expected to further support the optimization of the Maracás Menchen
Mine and unlock an opportunity to deliver significantly enhanced cash flow and drive increased
market competitiveness of the Company’s products. We believe these results demonstrate a clear
and profitable path forward for Largo, one that is aligned with our strategy and is expected to
create significant value for our shareholders.”
The Technical Report has been filed on SEDAR, with the SEC and can be found on the
Company’s website at www.largoinc.com.
Qualified Person
Porfirio Cabaleiro Rodriguez, Mining Engineer, BSc., FAIG, is a qualified person as defined by
NI 43 - 101, is responsible for the technical information contained in this release.
About Largo
Largo has a long and successful history as one of the world’s preferred vanadium companies
through the supply of its VPURETM and VPURE+TM products, which are sourced from one of
the world's highest-grade vanadium deposits at the Company's Maracás Menchen Mine in Brazil.
Following the acquisition of vanadium redox flow battery technology in 2020, Largo is
undergoing a strategic transformation to vertically integrate its world-class vanadium products
with its VCHARGE vanadium battery technology to support the planet's on-going transition to
renewable energy and a low carbon future. Largo’s VCHARGE batteries are uniquely capable of
supporting reliability and grid stability as electricity systems move away from fossil-fuel
generation. VCHARGE batteries are cost effective due to a variety of innovations, enabling an
efficient, safe and ESG-aligned long duration solution that is fully recyclable at the end of its
25+ year lifespan.
Largo’s common shares trade on the Nasdaq Stock Market and on the Toronto Stock Exchange
under the symbol "LGO". For more information, please visit www.largoinc.com.
Forward-looking Information:
This press release contains forward-looking information under Canadian securities legislation,
some of which may be considered "financial outlook" for the purposes of applicable Canadian
securities legislation ("forward-looking statements"). Forward‐looking information in this press
release includes, but is not limited to, statements with respect to the timing and amount of
estimated future production and sales; the estimation of mineral reserves and mineral resources;
the realization of mineral reserve and mineral resource estimates; the estimated production
schedule for Maracas Menchen Mine; the Company’s guidance for production; total cash costs;
all-in sustaining costs; the timing and amount of estimated future production; estimated costs of
production; depreciation expense; effective tax rate; expected capital expenditures; operations
outlook; the strategic direction of the Company; costs of future activities and operations; the
extent of capital and operating expenditures; the iron ore, vanadium, ilmenite and TiO2 price
environment; the timing and cost related to the build out of the ilmenite plant; eventual
production from the ilmenite plant; the ability to sell ilmenite and TiO2 on a profitable basis and
the extent and overall impact of the COVID-19 pandemic in Brazil and globally. Forward-
looking statements can be identified by the use of forward-looking terminology such as "plans",
"expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and
phrases or statements that certain actions, events or results "may", "could", "would", "might" or
"will be taken", "occur" or "be achieved". All information contained in this news release, other
than statements of current and historical fact, is forward looking information. Forward-looking
statements are subject to known and unknown risks, uncertainties and other factors that may
cause the actual results, level of activity, performance or achievements of Largo to be materially
different from those expressed or implied by such forward-looking statements, including but not
limited to those risks described in the annual information form of Largo and in its public
documents filed on www.sedar.com and www.sec.gov from time to time, as well as the
Company's business strategies; legal, litigation, legislative, political or economic developments
in the jurisdictions in which the Company carries on business; the ongoing impact of COVID-19
and its variants on the Company and its workforce, the availability of labour and contractors,
key inputs for the Company and global supply chains; government actions taken in response to
COVID-19, including new variants of COVID-19, and any worsening thereof. Forward-looking
statements are based on the opinions and estimates of management as of the date such
statements are made. Although management of Largo has attempted to identify important factors
that could cause actual results to differ materially from those contained in forward-looking
statements, there may be other factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove to be accurate, as actual
results and future events could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking statements. Largo
does not undertake to update any forward-looking statements, except in accordance with
applicable securities laws. Readers should also review the risks and uncertainties sections of
Largo's annual and interim MD&As which also apply.
Trademarks are owned by Largo Inc.
Contacts
Investor Relations
Alex Guthrie
Senior Manager, External Relations
+1.416.861.9778