Largo Inc. announced a significant operational improvement in Q3 2024, with vanadium pentoxide (V2O5) equivalent production increasing by 42% year-over-year to 3,072 tonnes. This marks the highest quarterly output for the company in seven quarters, demonstrating a positive trend in its mining operations.
Alongside the production increase, Largo signed a binding term sheet to supply 2,100 tonnes of V2O5 for a consideration of $23.5 million. This agreement is expected to unlock approximately $23.5 million in additional liquidity for the company between Q4 2024 and Q1 2025, by leveraging existing vanadium inventories.
The supply deal and increased production highlight Largo's efforts to optimize sales and manage its inventory effectively. These developments are crucial for the company's financial health and operational stability, especially in a fluctuating vanadium market.
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