Largo Announces Filing of Technical Report for the Updated Life of Mine Plan and Pre-Feasibility Study on its Maracás Menchen Mine
20 Décembre 2021 - 1:51PM
Business Wire
All amounts expressed are in U.S. dollars, denominated by
“$”
Largo Inc. ("Largo" or the "Company") (TSX: LGO) (NASDAQ: LGO)
is pleased to announce it has filed its National Instrument 43-101
(“NI 43-101”) technical report titled An Updated Life of Mine Plan
(“LOMP”) for Campbell Pit and Pre-Feasibility Study for GAN and NAN
Deposits, dated December 16, 2021 (the “Technical Report”), in
respect of the Company’s Maracás Menchen Mine in Brazil. The
Technical Report supports the disclosure made by the Company in its
press release dated November 3, 2021.
Technical Report Highlights
- Enhanced Profitability and Market Competitiveness: The phased
operational approach outlined in the Technical Report is expected
to unlock the ability to allocate operating costs between vanadium
pentoxide (“V2O5”) and titanium dioxide (“TiO2”) in a manner that
is expected to drive increased market competitiveness
- Technical Report Indicates $2.8 Billion Pre-Tax / $2.0 Billion
After-Tax NPV7% and $5.8 Billion Pre-Tax / $4.2 Billion After-Tax
Life of Mine Cash Flow: The materially enhanced Company
profitability forecasted by the Technical Report is driven by
expanded V2O5 production and incremental cash flows generated by
the production and sale of TiO2 pigment as a co-product
- Updated Mine Life of 20 Years: Total operating mine life for
the Maracás Menchen Mine of 20 years following extensive drilling
and engineering work performed at the Campbell Pit, and at the Novo
Amparo Norte and Gulçari A Norte deposits, in addition to the
inclusion of TiO2
- Expansion of Vanadium Operations: Current nameplate production
capacity of 13,200 tonnes per annum expected to increase to an
approximate average of 15,900 tonnes per annum in 2032
Paulo Misk, President and CEO of Largo, stated: “The phased
operational scenarios outlined in our Technical Report are expected
to further support the optimization of the Maracás Menchen Mine and
unlock an opportunity to deliver significantly enhanced cash flow
and drive increased market competitiveness of the Company’s
products. We believe these results demonstrate a clear and
profitable path forward for Largo, one that is aligned with our
strategy and is expected to create significant value for our
shareholders.”
The Technical Report has been filed on SEDAR, with the SEC and
can be found on the Company’s website at www.largoinc.com.
Qualified Person
Porfirio Cabaleiro Rodriguez, Mining Engineer, BSc., FAIG, is a
qualified person as defined by NI 43 - 101, is responsible for the
technical information contained in this release.
About Largo
Largo has a long and successful history as one of the world’s
preferred vanadium companies through the supply of its VPURETM and
VPURE+TM products, which are sourced from one of the world's
highest-grade vanadium deposits at the Company's Maracás Menchen
Mine in Brazil. Following the acquisition of vanadium redox flow
battery technology in 2020, Largo is undergoing a strategic
transformation to vertically integrate its world-class vanadium
products with its VCHARGE vanadium battery technology to support
the planet's on-going transition to renewable energy and a low
carbon future. Largo’s VCHARGE batteries are uniquely capable of
supporting reliability and grid stability as electricity systems
move away from fossil-fuel generation. VCHARGE batteries are cost
effective due to a variety of innovations, enabling an efficient,
safe and ESG-aligned long duration solution that is fully
recyclable at the end of its 25+ year lifespan.
Largo’s common shares trade on the Nasdaq Stock Market and on
the Toronto Stock Exchange under the symbol "LGO". For more
information, please visit www.largoinc.com.
Forward-looking Information:
This press release contains forward-looking information under
Canadian securities legislation, some of which may be considered
"financial outlook" for the purposes of applicable Canadian
securities legislation ("forward-looking statements").
Forward‐looking information in this press release includes, but is
not limited to, statements with respect to the timing and amount of
estimated future production and sales; the estimation of mineral
reserves and mineral resources; the realization of mineral reserve
and mineral resource estimates; the estimated production schedule
for Maracas Menchen Mine; the Company’s guidance for production;
total cash costs; all-in sustaining costs; the timing and amount of
estimated future production; estimated costs of production;
depreciation expense; effective tax rate; expected capital
expenditures; operations outlook; the strategic direction of the
Company; costs of future activities and operations; the extent of
capital and operating expenditures; the iron ore, vanadium,
ilmenite and TiO2 price environment; the timing and cost related to
the build out of the ilmenite plant; eventual production from the
ilmenite plant; the ability to sell ilmenite and TiO2 on a
profitable basis and the extent and overall impact of the COVID-19
pandemic in Brazil and globally. Forward-looking statements can be
identified by the use of forward-looking terminology such as
"plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words
and phrases or statements that certain actions, events or results
"may", "could", "would", "might" or "will be taken", "occur" or "be
achieved". All information contained in this news release, other
than statements of current and historical fact, is forward looking
information. Forward-looking statements are subject to known and
unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements of
Largo to be materially different from those expressed or implied by
such forward-looking statements, including but not limited to those
risks described in the annual information form of Largo and in its
public documents filed on www.sedar.com and www.sec.gov from time
to time, as well as the Company's business strategies; legal,
litigation, legislative, political or economic developments in the
jurisdictions in which the Company carries on business; the ongoing
impact of COVID-19 and its variants on the Company and its
workforce, the availability of labour and contractors, key inputs
for the Company and global supply chains; government actions taken
in response to COVID-19, including new variants of COVID-19, and
any worsening thereof. Forward-looking statements are based on the
opinions and estimates of management as of the date such statements
are made. Although management of Largo has attempted to identify
important factors that could cause actual results to differ
materially from those contained in forward-looking statements,
there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that
such statements will prove to be accurate, as actual results and
future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on forward-looking statements. Largo does not undertake to
update any forward-looking statements, except in accordance with
applicable securities laws. Readers should also review the risks
and uncertainties sections of Largo's annual and interim MD&As
which also apply.
Trademarks are owned by Largo Inc.
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Investor Relations Alex Guthrie Senior Manager, External
Relations +1.416.861.9778 aguthrie@largoinc.com
Largo (TSX:LGO)
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