Largo Resources Ltd. reported record fourth quarter and full-year 2018 production from its Maracás Menchen vanadium mine in Brazil.
The company produced 2,595 tonnes of vanadium pentoxide flake and powder, or 5.7 million pounds of vanadium pentoxide equivalent, in the fourth quarter, reflecting a 2% year-over-year increase, according to a Jan. 9 release.
Full-year output reached 9,830 tonnes of vanadium pentoxide flake and powder, or 21.67 million pounds of vanadium pentoxide equivalent, exceeding the company's midpoint guidance by 2% and a 6% increase over 2017.
Largo plans to replace Maracás Menchen's kiln refractory in the first quarter, which will result in around 17 days of down time affecting production rates and cash operating costs. As a result, the company anticipates lower production during March and higher cash operating costs in the quarter.
The company expects to produce between 10,000 tonnes and 11,000 tonnes of vanadium pentoxide in 2019, at an average annual cash operating cost of between US$3.45/lb and US$3.65/lb.
Meanwhile, an expansion ramp up at Maracás Menchen is expected to be completed in the third quarter, resulting in the increased nameplate production rate of 1,000 tonnes of vanadium pentoxide per month in the same quarter.
The company's 2019 sustaining capex is expected to range between US$10 million and US$14 million, with expansion capex also expected to fall between US$10 million and US$14 million.