- Strategic sales and marketing transition proven successful:
Over 85% committed on guided annual sales for 2020
- Sales and trading team fully operational out of its two
commercial offices in Dublin,
Ireland and Washington DC,
USA.
- The Company announced the launch of VPURE™ and VPURE+™,
newly developed brands for the Company's vanadium products in
January 2020
TORONTO, May 1, 2020 /CNW/ - Largo Resources Ltd.
("Largo" or the "Company") (TSX: LGO) (OTCQX: LGORF)
announces that in accordance with its notice given on August 20, 2019, the Company's off-take agreement
with Glencore International AG has expired effective April 30, 2020.
Paulo Misk, President and Chief
Executive Officer for Largo, stated: "Largo continues to remain
one of the lowest-cost vanadium producers in the world with an
established industry reputation for its high-quality vanadium
products. Following the expiration of its off-take agreement, the
Company's sales and trading team is fully dedicated to the
promotion and sales of Largo's products. We have assembled a very
strong commercial team at Largo who have committed approximately
85% of the Company's annual guided sales for 2020. We expect the
balance of production will be sold in the spot market and be used
to build safety stocks in strategic regional hubs."
He continued: "The Maracás Menchen Mine has a proven track
record of premium product quality and operational stability, which
allows the Company to provide its customers with a reliable source
of vanadium pentoxide for the global steel and high purity markets.
We believe this transition will be very beneficial economically and
strategically for Largo and marks a transformative moment in the
Company's history. We look forward to maximizing value for all of
our shareholders as the industry preferred producer and supplier of
vanadium."
He concluded: "We would like to thank Glencore for its
support over the past six years. Their off-take agreement was
helpful in obtaining debt funding for the project construction and
allowed Largo Resources to evolve from a highly leveraged start-up
Company to one of the world's largest and most competitive
producers of vanadium with a strong financial position. Our Company
today becomes an even more important player in the global vanadium
industry due to its commercial independence."
About Largo Resources
Largo Resources is an industry preferred producer and supplier
of vanadium. Largo's VPURE™ and VPURE+™ products are sourced from
one of the world's highest-grade vanadium deposits at the Maracás
Menchen Mine located in Brazil.
The Company's common shares are principally listed on the Toronto
Stock Exchange under the symbol "LGO". For more information on
Largo and VPURE™, please visit www.largoresources.com and
www.largoVPURE.com.
Neither the Toronto Stock Exchange (nor its regulatory
service provider) accepts responsibility for the adequacy or
accuracy of this press release.
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 application 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; costs
of future activities and operations; the extent of capital and
operating expenditures; 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 the 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 SEDAR from time to time. 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.
SOURCE Largo Resources Ltd.