Toronto-based Largo Resources reported record quarterly production in the fourth quarter of 2019, which helped the company meet its guidance for the full year.
Output was 16% higher year-on-year, at 3 011 t in the fourth quarter, taking full-year output to 10 577 t of vanadium pentoxide – an 8% year-on-year increase.
Largo attributed the higher production to the ramp-up and completion of the company’s expansion project at the Maracás Menchen mine, in Brazil, which followed the commissioning of a pre-evaporator and leaching, de-silication and precipitation tanks.
“Largo experienced another solid year of production in 2019 following the successful completion of its expansion project, which contributed to a new monthly vanadium pentoxide production record of 1 162 t in December,” said president and CEO Paulo Misk.
Largo has set its production guidance for this year at between 11 750 t and 12 250 t vanadium oxide in 2020, which will include high purity vanadium flake and high purity vanadium powder production, from Maracás Menchen.
“The company also achieved a new safety record in 2019; operating 238 days (1.5-million man-hours worked) without a lost time injury, surpassing its previous safety record of 203 days (1.3-million man-hours worked),” Misk pointed out.
He added that safety remained a top priority at Largo and that the company planned to update the market with all of its responsible mining initiatives following the release of its 2019 environmental, social and governance report.
Meanwhile, the Largo board had approved the construction of a ferrovanadium conversion plant at the Maracás Menchen mine, subject to available liquidity. The company expects to spend at least $8-million on the plant, with the majority of costs to be incurred this year.