EDITOR: | May 5th, 2014 | 3 Comments

Largo Resources could become the world’s leading producer of vanadium

| May 05, 2014 | 3 Comments

Largo-Resources-BrennanMay 5, 2014 — Tracy Weslosky, Editor-in-Chief and Publisher of InvestorIntel in an interview with Mark Brennan, CEO and President for Largo Resources (‘Largo’, TSXV: LGO) dives right into why Largo could very well become the world’s leading producer of vanadium. Largo, which is developing the Maracas vanadium property in Brazil, announced on April 10th that construction of the processing facility in the State of Bahia is 99.8% complete and it has the potential to turn Brazil into one of the world’s top vanadium producers. Simply put, Mark says “we’re actually 99.9% done today, so, we’re very close to production.”

Some may wonder, as Tracy does, what accounts for the 0.1% that is left? Mark says that there are just some “ancillary issues like lighting, essentially secondary issues not essential for production; so, just a couple more weeks and it’s done. The focus now is actually commissioning all the systems and getting all the systems ready. That’s the real key to our production.” Not surprisingly, notes Tracy, critical metals consultant, Jack Lifton, said that “this is a stock he wished he could buy,” while Dr. Luisa Moreno, Senior Research Analyst at Euro Pacific Canada, was the one that brought Largo to Tracy’s attention in the first place, because she thinks vanadium demand will be increasing sharply.

Vanadium is becoming essential for the production of steel as aircraft and automotive manufacturers address demand for lighter and tougher materials, which contribute to reducing fuel consumption and reduce emissions. Steel companies are now offering high strength low alloy steels which the fastest growing segment of the steel market and vanadium is key for its production. Mark adds that China is another important driver of vanadium demand because of its use in high strength steel for construction. Demand for such steel in China has been booming because of new anti-earthquake compliance standards.

Until recently China has been using in the range of 0.02-0.023% of vanadium per ton of steel. Japanese and Western steel uses anywhere from 0.06 to 0.08% per ton of steel, triple the amount or more: “China now wants to enhance the quality of the steel….and this will probably mean a doubling of demand for vanadium over the next two to three years.” says Mark. That will account for a virtual doubling of the global demand for vanadium.

Mark adds that Maracas may well be the best vanadium project in the world; it has the highest grade material, “which means we can be the lowest cost producer.” It is a big project with a 29 year projected mine life and “we believe this could go on for a hundred years and could change the way vanadium is used in the future.”

Disclaimer: Largo Resources is an advertorial member of InvestorIntel.


Tracy Weslosky is the founder and CEO for InvestorIntel Corp. (2001-Present), a leading online source of investor information that since 2001 has provided public market ... <Read more about Tracy Weslosky>

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  • John

    News Release on April 10: “Construction of the Project is now 99.8% complete, with only the installation of auxiliary items still underway.”

    May 5: “We’re actually 99.9% done today, so, we’re very close to production.” There are just some “ancillary issues like lighting, essentially secondary issues not essential for production; so, just a couple more weeks and it’s done”

    Only 0.1% progress in one month from April 10 to May 5? Another 2 weeks to complete the remaining 0.1%? Why does the “installation of auxiliary items” take so much time? Any unexpected problem?

    May 5, 2014 - 5:10 PM

    • Veritas Bob

      It’s true what they say, (making) the first million is the hardest. Similarly, the last 1%, and even the last 0.1%, is the hardest. People like to report good progress, so reported percent complete initially goes up quickly. As the reported percentage complete nears 100, further increases in percent complete will get slower, because usually the project is not reported 100% complete when it is not at least close.

      May 5, 2014 - 8:22 PM

  • John

    But again in Mark’s own words, the 1% remained to be done for construction comprises “ancillary” / “secondary” issues that are not “essential” for production. As per Mark “commissioning” represents the real key for production. So what is the progress report on commissioning? 99.9% complete?

    May 7, 2014 - 2:47 PM

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