15th May 2017
By: Henry Lazenby
Creamer Media Deputy Editor: North America
VANCOUVER (miningweekly.com) – The strong price recovery of the industrial metal vanadium pentoxide (V2O5) has not yet been enough to lift producer Largo Resources into the black, casting material doubts on the company’s ability to meet its financial obligations should it be unsuccessful in raising more cash.
During the first quarter ended March, the V2O5 price has continued to recover, with a price at March 31 of between $5.40/lb and $5.80/lb. By May 12, the market price of V2O5 had improved further to a range of between $5.95/lb and $6.40/lb, which will underpin the Toronto-headquartered company’s financial performance for the rest of the year.
In a news release to Mining Weekly Online on Monday, Largo stated that the company’s flagship Maracás Menchen mine, in Bahia state, Brazil, improved its cost performance over the course of 2016, but noted that in this current price environment, expenses, including debt servicing costs, remain more than revenues.