At the Vancouver Resource Investment Conference last week, CEO.ca caught up with Largo Resources (TSXV:LGO) CEO Mark Brennan.
The company is the only pure play vanadium producer (Vanadium is an alloy that makes steel stronger).
Mr. Brennan told us about the vanadium market and how it is growing due to being used in more applications.
Mark Brennan, CEO, Largo, Cambridge House transcript:
The vanadium market right now is actually trading at a 5 year low. At the same point we are seeing Vanadium going into the highest strength of the alloy steel market which is the fastest growing segment for the field market.
Essentially what you are seeing is vanadium is now being used in multiple products where in the past it was just used for very few markets.
We are seeing Vanadium going into everything. It is at the very early stage of that cycle. We will continue to see strong demand for vanadium going forward.
Largo’s focus for 2015 is to ramp up production and get to full capacity
The three risks that we run are;
3. Recoveries efficiencies
We have a first class team involved who are now working on that. We are running at 50-60% of our capacity at the moment and we expect to be at 100% of phase 1 capacity by the third quarter.
Largo has the highest grade, highest quality project in the world. We will be among if not the lowest cost producer of any form of vanadium.
From that perspective we will be able to grow our project which has plenty of scalability. So it will become a very large project over time.
We will continue to dominate the Vanadium market with the Maracas project.
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