Largo Lowers Ilmenite Production Forecast Due to Rescheduled Maintenance

Largo, a leading vanadium producer, has revised its ilmenite production and sales forecasts downward for the remainder of the year, following a decision to advance its annual kiln maintenance. Originally scheduled for the first quarter of 2025, the maintenance has been moved up to November to avoid potential disruptions from seasonal rains at the company’s Maracas Menchen mine in Brazil.

The Canada-based company now anticipates producing between 10,000 and 15,000 metric tonnes of ilmenite in the third quarter and 12,000 to 17,000 tonnes in the fourth quarter, significantly down from earlier projections of 21,000 to 24,000 tonnes and 24,000 to 28,000 tonnes, respectively. Sales expectations have also been reduced, with third-quarter volumes now forecasted between 5,000 and 15,000 tonnes, compared to a previous estimate of 19,500 to 21,000 tonnes.

Despite these adjustments, Largo confirmed that its vanadium pentoxide (V2O5) output and sales will remain unaffected. The company has been focusing on ilmenite as an additional revenue stream amidst declining global prices for V2O5 and ferro-vanadium. In the most recent quarter, ilmenite contributed $2.3 million, or 8.2 percent, to Largo's earnings, while vanadium products continue to be the main revenue driver.

Largo’s financial performance has been under pressure, with quarterly losses widening to $14.5 million from $6 million a year earlier, as revenues fell by 46 percent to $28 million. The company attributed the downturn to weak demand for ferro-vanadium, particularly due to challenging conditions in the European and Chinese steel markets.