Largo achieves record quarterly net income in Q1 while average V2O5 prices hit nine-year high [UPDATED]

Date: May 11, 2018

Brazil-focused Canadian vanadium producer Largo Resources has reaped the benefits of strong vanadium pentoxide prices in the three months to March 31, with the company reporting its highest ever quarterly net income in its financial report published on Monday May 7.

Largo declared a net income of $45.8 million in the first quarter of 2018, while revenues rose 210% year on year in the same period to $91 million, the company said.

The significant increase in Largo’s net income and revenue was mainly attributed to multi-year high vanadium pentoxide prices in the quarter. Prices so far this year have reached levels last seen in October 2008.

Average prices for vanadium pentoxide in January-March 2018 were $13.21-13.70 per Ib, up 67.5% quarter on quarter and 160.5% year on year, according to Metal Bulletin’s benchmark quotation for vanadium pentoxide min 98%, in-warehouse Rotterdam.

Largo produced 2,214 tonnes of vanadium pentoxide in the first quarter of 2018, up 7% year on year, but down 13% from the fourth quarter of 2017.

The slight year-on-year production increase at Largo’s Maracás Menchen mine in Bahia, Brazil, in the three-month period also contributed to the company’s higher earnings.

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