Largo Announces Second Quarter 2024 Production and Sales Results; Focus on Improving Operational Throughput Continues Q2 2024 and Other Highlights
Largo Announces Second Quarter 2024
Production and Sales Results; Focus on
Improving Operational Throughput
Continues
Q2 2024 and Other Highlights
• V2O5 production of 2,689 tonnes (5.9 million lbs1) in Q2 2024 vs. 2,639 tonnes
produced in Q2 2023 and 56% above production of 1,729 tonnes in Q1 2024; Within
the Company’s quarterly production guidance range of 2,400 – 2,900 tonnes of V2O5
• Following the successful completion of planned kiln refractory maintenance in Q1
2024, the Company achieved improved production rates in Q2 2024
• Global V2O5 recovery rate3 of 74.3% in Q2 2024 vs. 81.0% in Q2 2023
• Ilmenite concentrate production continued to ramp up in Q2 2024 with 8,625 tonnes
produced
• V2O5 equivalent sales of 1,841 tonnes (inclusive of 128 tonnes of purchased material)
in Q2 2024 vs. 2,557 tonnes sold in Q2 2023 due to lack of material availability
following lower production in Q1 2024
• In Q2 2024, the Company sold 12,261 tonnes of ilmenite concentrate, exceeding the
guidance range of 9,500 to 11,500 tonnes; This increase was primarily due to the
anticipated catch-up in sales from Q1 2024
• In Q2 2024, the average benchmark price per lb of V2O5 in Europe was $5.93,
representing a 30% decrease from the Q2 2023 average of $8.46, driven by
continued softer demand in the spot market
TORONTO--(BUSINESS WIRE)--July 17, 2024--Largo Inc. ("Largo" or the "Company")
(TSX: LGO) (NASDAQ: LGO) today announces quarterly production of 2,689 tonnes (5.9
million lbs1) and sales of 1,841 tonnes of vanadium pentoxide (“V2O5”) equivalent, respectively,
in Q2 2024.
Daniel Tellechea, Interim CEO and Director of Largo, stated: “Our second quarter results
reflect the successful completion of planned maintenance and a return to expected production
levels. Focusing on operational efficiencies remains essential as we work to maintain production
targets for the second half of the year, which will support meeting our sales goals. Additionally,
our ongoing efforts to ramp up ilmenite production are key to diversifying our revenue streams,
especially in the current environment of lower vanadium prices. By continuing to enhance our
operational processes and address logistical challenges, we aim to ensure consistent production
and reliable supply to our customers going forward.”
Maracás Menchen Mine Operational and Sales Results
Q2 2024 Q1 2024 Q2 2023
Total Mined – Dry Basis (tonnes) 3,216,930 3,243,492 3,671,842
Total Ore Mined (tonnes) 568,588 604,231 489,892
Ore Grade Mined - Effective Grade (%)2 0.69 0.53 0.86
Concentrate Produced (tonnes) 115,075 74,986 99,083
Grade of Concentrate (%) 2.95 2.90 3.34
Global Recovery (%)3 74.3 70.5 81.0
V2O5 produced (Flake + Powder) (tonnes) 2,689 1,729 2,639
V2O5 produced (equivalent pounds) 1 5,928,223 3,811,788 5,817,992
Total V2O5 equivalent sold (tonnes) 1,841 2,765 2,557
Produced V2O5 equivalent sold (tonnes) 1,713 2,609 2,268
Purchased V2O5 equivalent sold (tonnes) 128 156 289
Ilmenite concentrate produced (tonnes) 8,625 9,563 -
Ilmenite concentrate sold (tonnes) 12,261 513 -
Q2 2024 Additional Highlights
• Improved V2O5 Production in Q2 2024 Following Completion of Q1 2024
Maintenance: V2O5 production from the Maracás Menchen Mine was 753 tonnes in
April, 1,012 tonnes in May and 924 tonnes in June for a total of 2,689 tonnes produced in
Q2 2024. In Q2 2024, global recoveries3 averaged 74.3%, a decrease of 8% from the
81.0% averaged in Q2 2023. The global recovery3 was impacted by lower magnetic and
V2O5 grades in the processed ore. The Company mined 568,588 tonnes of ore with an
effective V2O5 grade2 of 0.69% in Q2 2024 compared to 489,892 tonnes with an effective
V2O5 grade2 of 0.86% in Q2 2023 and 604,231 tonnes with an effective V2O5 grade2 of
0.53% in Q1 2024, representing a 16% increase in total ore mined over the prior
comparative quarter. Total ore crushed was 640,008 tonnes in Q2 2024, being 24%
higher than Q1 2024 and 44% higher than the 445,026 tonnes crushed in Q2 2023. The
Company continues to increase its mined and crushed ore throughput in order to achieve
its set production targets in accordance with its 2024 mining plan. The Company also
produced 115,075 tonnes of concentrate with an effective grade2 of 2.95% in Q2 2024.
• Q2 2024 V2O5 Equivalent Sales Align with Material Availability from Q1 2024
Production: In Q2 2024, V2O5 equivalent sales of 1,841 tonnes (which includes 128
tonnes of purchase material sold) represented a 28% decrease in tonnes sold over Q2
2023. Lower sales in Q2 2024 were largely a result of decreased material availability
from lower production in Q1 2024 due to previously reported and planned maintenance.
In Q2 2024, lower spot market demand continued mainly caused by a decreased demand
from the Chinese and European steel sectors. The Company produced approximately
26% of its quarterly production as high purity material in Q2 2024. The Company
continues to actively manage its logistics and supply chain operations to ensure the
delivery of premium products and services to its customers. In Q2 2024, shipment
operations from Brazil faced challenges due to congestion and delays, particularly in
Asia.
About Largo
Largo is a globally recognized vanadium company known for its high-quality VPURE™ and
VPURE+™ products, sourced from its Maracás Menchen Mine in Brazil. The Company is
currently focused on ramping up production of its ilmenite concentrate plant and is undertaking a
strategic evaluation of its U.S.-based clean energy business, including its advanced VCHARGE
vanadium battery technology to maximize the value of the organization. Largo's strategic
business plan centers on maintaining its position as a leading vanadium supplier with a growth
strategy to support a low-carbon future.
Largo’s common shares trade on the Nasdaq Stock Market and on the Toronto Stock Exchange
under the symbol "LGO". For more information on the Company, please visit
www.largoinc.com.
Cautionary Statement Regarding Forward-looking Information:
This press release contains “forward-looking information” and “forward-looking statements”
within the meaning of applicable Canadian and United States securities legislation. 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 future price of commodities;
costs of future activities and operations, including, without limitation, the effect of inflation and
exchange rates; the timing and success of the commissioning and ramp up of the ilmenite
production; the ability to sell ilmenite on a profitable basis; the successful vertical integration of
the Company; the effect of unforeseen equipment maintenance or repairs on production; the
ability to reduce the cost of production through cost reduction measures; the extent to which
infill drilling data will create greater accuracy and reliability in the short-term mining plan and
production guidance; the extent of capital and operating expenditures; and the impact of global
price increases on the Company’s global supply chain and future sales of the Company’s
products. Forward‐looking information in this press release also includes, but is not limited to,
statements with respect to our ability to build, finance and operate a VRFB business, our ability
to protect and develop our technology, our ability to maintain our IP, the competitiveness of our
products in an evolving market, our ability to market, sell and deliver our VCHARGE batteries
on specification and at a competitive price, our ability to secure the required production
resources to build and deploy our VCHARGE batteries, our ability to attract partners,
collaborators and/or investors to build the VRFB business on terms attractive to the Company,
and the adoption of VRFB technology generally in the market. 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 or Largo Clean Energy 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 available on www.sec.gov from time to time.
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.
_______________________
1 Conversion of tonnes to pounds, 1 tonne = 2,204.62 pounds or lbs.
2 Effective grade represents the percentage of magnetic material mined multiplied by the
percentage of V2O5 in the magnetic concentrate.
3 Global recovery is the product of crushing recovery, milling recovery, kiln recovery, leaching
recovery and chemical plant recovery.
Contacts
Investor Relations
Alex Guthrie
Senior Manager, External Relations
+1.416.861.9778