Additional Information
Market: TSX-V
Sector: General Mining
EPIC: LGO
Latest Price: 0.33  (-2.94% Descending)
52-week High: 0.35
52-week Low: 0.19
Market Cap: 324.87M
1 year chart
1 day chart
Largo Resources
www.largoresources.com

Largo Resources is a Canadian based Strategic Metals company focused on bringing its flagship Maracas Vanadium Project to production in 2014. The Maracas project which is the highest grade vanadium deposit in the world, is funded and currently under construction. 

Largo Resources rallies on expanded production scenario economics at Maracas project

21st Jan 2013, 2:54 pm by Deborah Bacal
Shares of the company were lately higher by almost 5% at 21.5 cents, but earlier hit as high as 23.5 cents. Shares of the company were lately higher by almost 5% at 21.5 cents, but earlier hit as high as 23.5 cents.

Largo Resources (CVE:LGO) shares jumped as much as 15% Monday after reporting results from its preliminary economic assessment (PEA) for an expanded production scenario at its Maracas vanadium project in Brazil just before the weekend. 

Shares of the company were lately higher by almost 5% at 21.5 cents, but earlier hit as high as 23.5 cents. 

The report, prepared by RungePincockMinarco, was commissioned to re-scope the project by incorporating a new production stream of both vanadium pentoxide and ferrovanadium, as opposed to just a ferrovanadium scenario. 

The new production scenario sees production increased by around 46% following year two, the company said, and sees a dual revenue stream of both products following year three. The mine life is also increased to 29 years from the 15 years previously set out in the feasibility study from 2008.

The changes resulted in an increase in the net present value at an 8% discount rate to $554 million versus the prior $274 million and a rise in the internal rate of return to 26.3% from 22.4% previously. 

The expanded production was a result of the company using all the mineral resources at the project as in a report released last December. 

The additional capex to expand the operation of roughly $US 50 million was minimized, Largo said, by the fact that the capacity of "significant components of the original plant design" were purposefully designed to be larger than required with a view to a future possible expansion.

This additional $US 50 million would be over and above the already funded US$230.347 million currently being utilized at the project, which is now under construction. Largo has already ordered equipment with additional capacity in anticipation of increasing production. 

It aims to produce both products by 2017, with the goal of completing the expansion of the vanadium pentoxide plant by the third quarter of 2015 and produce at an expanded rate within a year, while designing th ferrovanadium plant during this period. The company still has an offtake agreement with Glencore International, for 100 per cent of vanadium products for the first six years. 

Average vanadium pentoxide operating costs were pegged at $3.18 per pound, while average ferrovanadium operating costs were estimated at $15.62 per kilogram. 

The Canadian mineral resource exploration and development company currently holds a 100 per cent interest in the Maracás project, the Currais Novos tungsten tailings project, and the Campo Alegre de Lourdes iron-vanadium project, all in Brazil.

It also holds the Northern Dancer tungsten-molybdenum property in the Yukon, Canada.

No investment advice


Proactive Investors North America Inc, trades as "Proactiveinvestors USA & Canada".


You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.


You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.


From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.


You understand that we may be providing advertising and/or marketing services to companies mentioned on the site. A full list of companies that are paying for services from us, or our affiliated companies in the UK and Australia can be viewed here