RE: Comments please... My understanding is that Largo's ore will go through three crushing cycles prior to milling, then magnetic separation will further beneficiate their concentrates followed by concentrate filtration and then roasting? Magetic separation would allow for less concentrate at higher grades to go through the roast cycle and lower power costs? The PEA gives V2O5 recoveries of 72.5%. I believe Largo will later put in the process unit to convert some or all of the V2O5 to FeV with expected recoveries of 68.4%
A Roskill Report on vanadium estimated that steel grade V2O5 price should be $11.00/lb by 2017 which is ~1.73 times the present 3 year average price of $6.37/lb.
From a table given in Largo's April/May 2013 Presentation, their 2017 production was given as 13,757 tonne which is 20% above the average annaul production of 11,400 tonne (25.1 Million pounds) given in the PEA and equates to 30.3 million pounds, roughly 5.2 million pounds above above the average annual production given by the PEA.
If the 3 year average FeV price of $14.04/lb were also increased by ~1.73, it would equate to $24.28/lb, but FeV tonnages would be lower, or about 7,707 tonne (16.99 million pounds) based on the 2017 the Presentation and assuming all the V2O5 is converted to FeV.
Sales of V2O5 might be $333.6. million if they only produced V2O5 during 2017.
If they produced FeV only during 2017, then sales could be $412.7 million durong 2017.
What would potential Capex and Opex costs br?
Check out the up-to-date technical revised production plant issued on 4 March 2013.
https://www.largoresources.com/files/PEA_-_RUNGE.pdf
Page 42 gives you a LOM graph of production and page 43 shows a schematic of the production process and page 54 gives you a cash flow summary for 29 years. It gives a NPV of $554 million.
Note that besides the V2O5 and FeV product lines production includes an iron ore by-product line.
To answer your question see a sensitivity analysis on page 56.
Note the economic analysis does not include the possibility of additional PGM and Ilmenite product from the non-magnetic tailings. You can see the PGMs and Ilmenite in the mineralogical studies page 180 0 182. See a video presentatition given by Les Ford where he mentions the possibility of processing the non-magnetic tailings for PGMs and Ilmenite:
https://www.largoresources.com/projects/maracas/photo-gallery/default.aspx
I did an estimate what revenues those products would bring. https://www.stockhouse.com/bullboards/messagedetail.aspx?p=0&m=32485137&l=0&r=0&s=LGO&t=LIST
The PGMs and Ilmenite product lines are not included in the economic assement presented on page 54 of the technical report. There is discussion of favourable recovery of PGMs using Platsol processing on page 196.
An economic summary starts on page 382.