Largo Inc T.LGO

Iron ore sales in Q4-21?

[kha341]

I separate Largo’s iron ore into 2 categories:

1) Monthly Production (0.5M tonnes per annum), and

2) Stockpile / Inventory (~2M tonnes)

1) According to Paolo the presence of sodium in our iron ore is not natural. If the contamination happened during the production process then, imo, the change would be easy to make to ensure a production free of sodium. The change should be done right away to save the next batch. If sold at US$100/T then our annual production would bring in US$50M (or ~US$4.2M /mth) in revenue. 

2) With regard to the existing inventory of 2M tonnes, it would not be an easy task to REMOVE the sodium from the already contaminated the stockpile. A study to determine the economic viability of the cleansing project should be done right away.

Conclusion: I believe that the “sodium” problem is solvable in the short term. I will not be surprised to see some iron ore sales in Q4-21 unless Management doesn't want to do it at all..

[MetalsMan]

Kha, I'm really not convinced they have the mental horsepower or ambition to solve this. They knew they had an issue with the Iron Ore in April, yet by August, they had nothing in terms of a plan to present on the call.  They could have had a small presentation about consulting some engineering experts and a plan forward, but nothing  Worse, they seem completely unaware of the

[kha341]

Is the sodium problem solvable considering the fact that sodium salt is soluble? From the last Technical Report / PEA (by GE21- 2017) Calcine Residue Stack The calcine residue tailings consist of synthetic hematite (calcined magnetite) that will contain, regardless of the effectiveness of the leaching and filtering processes, some residues of vanadium and sodium salts soluble in the form of

[kha341]

"The residue stack was formerly wetted by sprinkling water on top of it, progressively washing for removal of soluble salts." So can we do more than just "wetted by sprinkling water"?

[kha341]

Excerpt from the "Recommendations" section of the last Technical Report / PEA (by GE21- 2017): Largo should further examine the possibility of selling its iron-rich calcine tailings. This would include considering what it would take to turn it into a more saleable product

[kha341]

The above document was done in 2017. So Management had known all along about the presence of sodium in our iron ore. Why did the Chinese only learn about it from their own testing after delivery? Why were they not informed about it  by our Management during negotiation? 

[Clipper2]

So they knew about the sodium. Good find kha.