The reduction was largely a result of a planned shutdown to implement upgrades to the kiln and
improvements in the cooler.
During the shutdown, the company increased its intermediate stockpiles. Following the commissioning and ramp-up phase, the upgrades are expected to increase the Largo’s nameplate capacity to 1,100 tonnes of V2O5 per month by the end of Q2 2021.
“As a result of the severe impacts of covid-19 pandemic, vanadium demand from the aerospace sector continues to lag, but we expect a gradual recovery from Q3 2021 onwards,” CEO Paulo Misk said in the media statement.
“Overall vanadium demand is expected to remain solid throughout 2021 as stimulus packages linked to the covid-19 economic recovery are implemented. A continuous focus on global carbon emission reduction will also support the increased use of vanadium in the traditional steel market as well as in the fast-growing long duration energy storage sector,” Misk said.
Midday Monday, Largo’s stock was also up 6% on the TSE. The company has a C$1.32 million market capitalization.