Full Potential We are among the largest highest-grade vanadium primary producers in the world. So the question is: When can we reach the full potential of our world-class asset? Imho, more likely starting from Q3-2021 at which time I would not be surprised to see Largo in the $3-$4 range even if the prices of the standard V2O5 = around US$6-7/lb. A strong increase in the prices of the standard V2O5 would be the icing on the cake. So imho things will turn around in 2021 and 2022 will be a great year.
Q3 was our first Q of full commercial independence.
Commercial Independence key strategy: Focus on High Purity vanadium which include price premium. This will not be achieved any time soon due to the covid-19 impact on the market especially the aerospace industry.
The company's V2O3 processing plant at Maracs Menchen Mine is expected to increase sales in the high-purity aerospace market, chemical industry and vanadium electrolytes used in the vanadium redox flow batteries. The V2O3 processing plant is expected to commence in Q1 2021 and the ramp-up and commissioning of the plant to conclude in Q3 2021.
When complete, the Ferrovanadium (FeV) Conversion Plant is anticipated to create downstream advantages as it vertically integrates the conversion of the Company’s V2O5, eliminating third party convertors, and will enable the Company to supply ferrovanadium consumers directly. FeV has a considerable higher margin than V2O5. The completion of the FeV conversion plant which was expected to be ready in Q1 2021 has been postponed until the end of 2021.
The preliminary study on the economic viability of the Titanium Dioxide project will be ready in Q1 2021 and Paulo has a lot of confidence in it: “But I'm sure that you're going to be happy when you see the final numbers by Q1 next year”.
If the BRL continued to weaken vis-a-vis the US$ our operational costs would continue to decrease further.
The share price will face a major headwind as the huge warrant conversion scheduled in Q1 2021 will create a massive dilution.