In a press release dated August 5 Largo Resources (OTCPK:LGORF) reported first vanadium production at the company's Maracas mine in Brazil. This event was foreshadowed in our recent article on the company and identified as the next near-term catalyst for our bullish case.
The company reported that the produced vanadium-pentoxide complied with quality specifications outlined in the off-take agreement with Glencore (OTCPK:GLCNF).
First production represents a major milestone for this junior miner. Construction of the mine and the plant had been completed on budget and no major problems occurred during commissioning. Largo Resources now moves into the ramp-up phase and expects to reach nameplate production within a year. Details on the timing and financing of Phase 2 expansion should eventuate in due time.
Disclosure: The author is long LGORF. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.
Editor's Note: This article covers one or more stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.