07:34 AM EDT, 10/21/2024 (MT Newswires) -- Largo (LGO.TO) reported Monday a 42% increase in vanadium oxide (V2O5) output in the third quarter to book its highest quarterly production in seven quarters.
The company produced 3,072 tonnes of V2O5 in the third quarter, rising from 2,163 tonnes produced in the year-ago period.
Largo said its V2O5 production of 1,097 tonnes in September represents its highest monthly production in two years.
Meanwhile, V2O5 equivalent sales fell to 1,961 tonnes in the third quarter from 2,385 tonnes sold in the year before.
"Operational efficiencies implemented earlier this year are now bearing fruit," said Daniel Tellechea, Largo's interim CEO and director. "These measures continue to strengthen our production capabilities and improve cost performance."
Largo also said it signed binding documentation to supply 2,100 tonnes of V2O5 to the commodities business of a New York-based asset manager for $23.5 million.
Largo expects to deliver the material in staggered shipments between Oct. 17, 2024, and March 31, 2025.
"With our operating team continuing to improve production rates in 2024, we have accumulated additional vanadium inventories that will be used for this transaction, with benefits to be realized once delivery is completed without impacting our current or future sales commitments," Tellechea said.
Largo's share price rose 4.1% last Friday to $2.8 on the TSX.