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
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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
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Largo Announces Second Quarter 2024 Production and Sales Results; Focus on Improving Operational Throughput Continues (Photo: Business Wire)
Maracás Menchen Mine Operational and Sales Results
Q2 2024 |
Q1 2024 |
Q2 2023 |
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Total Mined – Dry Basis (tonnes) |
3,216,930 |
3,243,492 |
3,671,842 |
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Total Ore Mined (tonnes) |
568,588 |
604,231 |
489,892 |
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Ore Grade Mined - Effective Grade (%) 2 |
0.69 |
0.53 |
0.86 |
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Concentrate Produced (tonnes) |
115,075 |
74,986 |
99,083 |
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Grade of Concentrate (%) |
2.95 |
2.90 |
3.34 |
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Global Recovery (%) 3 |
74.3 |
70.5 |
81.0 |
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V2O5 produced (Flake + Powder) (tonnes) |
2,689 |
1,729 |
2,639 |
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V2O5 produced (equivalent pounds) 1 |
5,928,223 |
3,811,788 |
5,817,992 |
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Total V2O5 equivalent sold (tonnes) |
1,841 |
2,765 |
2,557 |
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Produced V2O5 equivalent sold (tonnes) |
1,713 |
2,609 |
2,268 |
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Purchased V2O5 equivalent sold (tonnes) |
128 |
156 |
289 |
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Ilmenite concentrate produced (tonnes) |
8,625 |
9,563 |
- |
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Ilmenite concentrate sold (tonnes) |
12,261 |
513 |
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Q2 2024 Additional Highlights
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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 inAsia .
About Largo
Largo is a globally recognized vanadium company known for its high-quality VPURE™ and VPURE+™ products, sourced from its Maracás
Largo’s common shares trade on the
Cautionary Statement Regarding Forward-looking Information:
This press release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable Canadian and
Trademarks are owned by
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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.
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Investor Relations
Senior Manager, External Relations
+1.416.861.9778
aguthrie@largoinc.com
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