Largo Resources (TSX: LGO) reported on Monday a new quarterly production record of 3,092 tonnes (6.8 million lbs) of vanadium pentoxide (V2O5) in Q3 2020, a 5% increase over Q3 2019.
The company also announced a record global V2O5 recovery rate of 84.2% in Q3 2020, an increase of 8.0% over Q3 2019, from its Maracás Menchen mine in Bahia, Brazil.
Total sales exceeded production levels in August and September 2020 for the first time since commercial independence, the company said in a press release.
“The company has also reduced its cash operating cost excluding royalties and total cash cost guidance for 2020 to $2.60 – $2.80 and $3.20 – $3.40 / lb V2O5, respectively. Additionally, the company is on track to meet the lower end of its 2020 production guidance of 11,750 – 12,250 tonnes of V2O5 and we look forward to ending the year on another high note,” said Paulo Misk, president and Chief Executive Officer for Largo.
“I am also very happy with our sales and trading performance in Q3 2020 with V2O5 equivalent sales of 1,062 tonnes in August 2020 and 1,060 tonnes in September 2020. We are confident in delivering on our 2020 sales guidance of 9,500 to 10,000 tonnes,” he said.
Largo has increased its sales in China to take advantage of higher prices and greater overall demand in Q3 2020.
Midday Monday, Largo’s stock was up 8% on the TSE. The company has a C$586 million market capitalization.