Largo Inc. has added a new press release to its website:
Largo Reports Q4 and Full Year 2024 Operational and Sales Results; Provides 2025 Outlook and Guidance
All amounts expressed are in U.S. dollars, denominated by “$”.
Q4 and FY 2024 Highlights
Quarterly V 2 O 5 equivalent production of 1,775 tonnes (3.9 million lbs1 ) in Q4 2024 vs. 2,768 tonnes produced in Q4 2023; Decrease due to scheduled kiln and cooler maintenance
Annual V 2 O 5 production of 9,264 tonnes (20.4 million lbs1 ) in 2024 vs. 9,681 tonnes in 2023; Within the Company’s 2024 annual production guidance range of 9,000 – 11,000 tonnes
Quarterly global V 2 O 5 recovery of 77.9% in Q4 2024 vs. 79.4% achieved in Q4 2023; Annual global V 2 O 5 recovery of 76.4% in 2024 vs. 80.0% in 2023
Quarterly sales of 3,033 tonnes of V 2 O 5 equivalent (inclusive of 8 tonnes of purchased material and 1,200 tonnes related to the Company’s vanadium inventory supply agreement) in Q4 2024, a 16% increase over the 2,605 tonnes in sold Q4 2023
Annual V 2 O 5 equivalent sales of 9,600 (inclusive of 416 tonnes of purchased material and 1,200 tonnes related to its vanadium inventory supply agreement) tonnes in 2024 vs. 10,396 tonnes in 2023; Within the Company’s annual 2024 sales guidance of 8,700 – 10,700 tonnes
Ramp up of the Company’s ilmenite concentrate production remains ongoing with 10,292 tonnes produced in Q4 2024 and 44,863 tonnes produced in 2024; Quarterly ilmenite concentrate sold of 10,570 tonnes in Q4 2024 and 42,916 tonnes sold in 2024
In 2024, Largo increased mineral reserves by 67% and mineral resources by 64%, extending the Maracás Menchen Mine’s life to 31 years (the “Technical Report”), as detailed in its October 2024 Technical Report (see press release dated October 28, 2024)
Vanadium Market Update2
The average benchmark price per lb of V 2 O 5 in Europe was $5.34 in Q4 2024, a 21% decrease from the average of $6.46 seen in Q4 2023; The average benchmark price at December 31, 2024 was $5.37, a 22% decrease from the average of $6.53 at December 31, 2023
The average benchmark price per kg of ferrovanadium in Europe was $26.10 in Q4 2024, a 2% decrease from the average of $26.62 seen in Q4 2023; The average benchmark price at December 31, 2024 was $25.38, a 13% decrease from the average of $28.70 at December 31, 2023
Vanadium spot demand softened in Q4 2024, primarily due to weaker demand in the Chinese and European steel industries, while the U.S. steel market remained stable; Aerospace sector demand remained strong, and China’s energy storage sector is expected to drive additional consumption in upcoming quarters
In 2025, U.S. steel demand is expected to remain stable, while European and Asian steel markets face continued softness; The aerospace sector is projected to see increased demand, particularly in the second half of 2025 and China’s energy storage market is expected to be a key driver of vanadium consumption as the sector continues to accelerate
TORONTO--(BUSINESS WIRE)-- Largo Inc. (" Largo " or the " Company ") ( TSX: LGO ) ( NASDAQ: LGO ) today announces annual production of 9,264 tonnes (20.4 million lbs¹) of vanadium pentoxide (“ V2O5 ”) equivalent from its Maracás Menchen Mine and sales of 9,600 tonnes of V2O5 equivalent in 2024, alongside ongoing efforts to enhance operational efficiencies, expand mineral resources and reserves, and reinforce its position as a reliable supplier of high purity vanadium.
Largo Reports Q4 and Full Year 2024 Operational and Sales Results; Provides 2025 Outlook and Guidance (Photo: Business Wire)
Largo Reports Q4 and Full Year 2024 Operational and Sales Results; Provides 2025 Outlook and Guidance (Photo: Business Wire)
Daniel Tellechea, Interim CEO of Largo, stated: “In 2024, our team remained focused on implementing operational efficiencies, cost reduction measures, and strengthening Largo’s position as a reliable, western vanadium supplier. The results of our updated Technical Report marked a significant milestone for Largo, increasing our mineral reserves by 67% and mineral resources by 64%, extending the Maracás Menchen Mine’s life to 31 years. While production in 2024 was impacted by lower ore grades derived from our open pit mine sequencing plans and maintenance efforts, we continue to take decisive steps to reduce costs and enhance operational efficiencies at the mine. These initiatives are designed to support future operational stability, though near-term production challenges remain as we continue to optimize operations by accelerating waste rock pre-stripping at the Maracás Menchen Mine.”
He continued: “Our recent announcement regarding the formation of Storion Energy with Stryten Energy strengthens our strategic investment in vanadium-based energy storage and positions us to capitalize on the growing demand for long duration energy storage solutions. Looking ahead, our focus remains on reducing costs further, optimizing operational efficiencies, and ensuring disciplined execution of our mining plan. As we continue to implement these improvements, we expect to drive greater reliability in our operations going forward.”
V2O5 equivalent production in Q4 2024 was 1,775 tonnes, representing a 36% decrease from Q4 2023 (2,768 tonnes) and a 42% decrease from Q3 2024 (3,072 tonnes). Production was impacted by the scheduled shutdown in November and December for the kiln and cooler refractory maintenance, as well as a reduction in ore grade, which was expected. While the maintenance process was completed, unforeseen challenges in the refractory replacement extended the timeline, further affecting production levels in Q4 2024. The Company took corrective measures to address these issues and remains focused on optimizing the overall efficiency of the kiln moving forward.
Total ore mined in Q4 2024 was 476,742 tonnes, aligning with the 473,958 tonnes mined in Q4 2023. The effective ore grade3was 0.49% V2O5 in Q4 2024, lower than the 0.76% in Q3 2024 and 0.82% in Q4 2023. Global recoveries4in Q4 2024 were 77.9%, down 1.9% from Q4 2023 (79.4%). Monthly global recoveries4were 78.2% in October, 76.7% in November, and 78.1% in December.
High purity vanadium products represented 26% of total production in Q4 2024 vs. 60% in Q4 2023.
Ilmenite production continued its ramp-up in Q4 2024, reaching 10,292 tonnes, with 3,742 tonnes produced in October, 3,187 tonnes in November, and 3,364 tonnes in December. The Company continues to refine its processes to improve efficiency and throughput, with further optimization efforts underway as operations stabilize and quality enhancements take effect.
2025 Guidance
Tables summarizing the Company’s 2025 production, sales and cost guidance are provided below. The Company expects lower V2O5 equivalent production in Q1 2025, impacted by heavier-than-expected rainfall in early January and a slower-than-anticipated production ramp-up following the kiln and cooler refractory maintenance in Q4 2024.
Largo remains focused on improving operational efficiencies and mitigating production challenges at the Maracás Menchen Mine. To support this, the Company continues to advance its productivity improvement initiatives, including a greater focus on mining efficiency aimed at enhancing mine fleet availability, strengthening contractor oversight, improving maintenance programs, and optimizing drilling and blasting techniques. These actions are designed to stabilize and enhance throughput in 2025 while supporting operational improvements at the Maracás Menchen Mine. However, lower ore grades and ongoing mine sequencing adjustments are expected to continue impacting production in H1 2025.