VANCOUVER (miningweekly.com) – Canadian vanadium producer Largo Resources has narrowed its net loss for 2017 to C$10.4-million, or C$0.02 a share, as record fourth-quarter production dovetailed into higher realised prices for its vanadium pentoxide (V2O5) product.
Largo set a new monthly production record in December at its flagship Maracás Menchen vanadium mine, in Brazil’s Bahia state, after the plant performed 12.9% above its nameplate capacity.
Toronto-based Largo said the performance improvement is owing to the operating team's continued efforts to enhance efficiencies and improve output. December output totalled 903 t of V2O5, compared with the previous monthly record of 888 t set in August.
Largo has also achieved a new quarterly production record for the fourth quarter, producing 2 539 t of V2O5. During the fourth quarter, the plant operated 5.8% above nameplate capacity.
Total production for 2017 was 9 297 t of V2O5, which represents about 96.5% of the plant’s nameplate capacity.
This translated to 56% higher revenues for the fourth quarter, at C$49-million, which helped to more than double full-year revenues to C$167.7-million. Revenues for the fourth quarter exceeded direct mine and mill costs by $29.5-million, Largo noted, as the average price of V2O5 came in at $8.13/lb.
Largo has guided for 2018 production of between 8 950 t to 9 950 t of V2O5, to be produced at an estimated annual average cash operating cost of $4.15/lb. The improved output, combined with a significantly higher current vanadium price of $15/lb to $16/lb, according to Metal Bulletin, sets the company up for a buoyant year ahead.