Largo’s 2017 revenue doubles y-o-y on V2O5 production, price increase

Date: Mar 28, 2018

Brazil-focused Canadian vanadium producer Largo Resources’ revenue in the 2017 fiscal year, ended on December 31, more than doubled from 2016, the company said in its annual report Friday March 23.

The company achieved a revenue of C$167,723 ($130,849) in 2017, a 106% surge from the C$81,233 achieved in the same period of 2016. Its V2O5 production increased 16.7% from 2016, reaching 9,297 tonnes.

V2O5 min 98%, in-warehouse Rotterdam prices closed 2017 at $9.60-9.90 per Ib, a 91% surge from the start of the year, peaking at $11.00-11.25 per lb in early September, according to Metal Bulletin’s assessment.

Mark Smith, president and chief executive officer for Largo, stated: “Our financial performance continues to improve, evident by our strong fourth-quarter 2017 results. We anticipate that these results will continue to improve alongside the strengthening vanadium price.”

The significant price rise was mainly underpinned by production cuts in China’s major production hub of Sichuan province in July and August following the stringent environmental inspections, as well as the forecast vanadium consumption increase due to the country’s revisions to its rebar standards.

Largo’s vanadium mine – Maracás Menchen, located in Bahia State, Brazil – produced its first vanadium pentoxide flake on August 2, 2014, and entered into commercial production on October 1, 2015.

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