Mark Smith on Largo raising $26.8 million for the only pure producer of vanadium in the world
Channel: InvestorCoffee
Date: 01/04/2016

April 1, 2016 - In a special InvestorIntel interview, Publisher Tracy Weslosky speaks with Mark Smith of Largo Resources Ltd. (TSXV: LGO), the only pure producer of vanadium in the world, on their recent USD$26.8 million raise. Mark credits Largo’s “truly phenomenal resource”, which has the highest known vanadium ore grade, a well-known technology and a fantastic team as the reason “this one has to win.” 

Tracy Weslosky: For starters I’d like to congratulate you. You’ve just completed a private placement. Closing at what, 26.8 million U.S.?   
 
Mark A. Smith: Correct.

Tracy Weslosky: This is obviously very challenging in these current markets. Can you tell me how you managed to do this? 

Mark A. Smith: Well, you start out with a great project, but also let me say that this was a recent financing that we announced. About 9 months ago we had completely refinanced the company so we’ve actually done this twice now in 11 months. I say that not to pat our team on the back for being able to raise the money. I say it because it speaks volumes about the project. This is a truly phenomenal resource. The technology is well known. The people are fantastic that work at this company. This one has to win.

Tracy Weslosky: I think indeed that being able to close this financing shows confidence from your investors. Of course, all of you investors at InvestorIntel that are seeking companies that have capital, management and, of course, you’re the only pure producer of vanadium in the world. Is that correct? Can you talk to us a little bit about your production?

Mark A. Smith: Well, the production is continuing to ramp up. We’ve been in that ramp up phase for probably about 16-17 months now. As you look forward sometimes it feels like it’s taking a long time, but as you look backward, I like the progress that we continue to make every day. Every day we learn something new about our process. We incorporate those learnings into what we do and we’re continuing to ramp up as we go. That’s what we want to see. 

Tracy Weslosky: I also want to ask you about the grade as you have the highest grade vanadium in the world as well.  
Mark A. Smith: That’s correct. 

Tracy Weslosky: Can you talk to us about why this is advantageous for not only Largo and your shareholders, but in general?
Mark A. Smith: You know it’s a real simple calculation actually. We’re sitting there at about a 1.34% ore grade for our V2O5. Similar ore grades are probably half of that. That means that we have to process less than half the material to get the same amount of product that we get to sell to our customers. It’s a huge economic advantage for you as a mining company. Now the other thing about vanadium though, which a lot of people don’t understand or even realize, is that there’s two concentrations that are very important in the vanadium industry. One is the ore grade cause that tells you how much material you have to process. The second one is, how high of a percent V2O5 can you create in your concentrate? We’re also the winner in that category. We have the highest ore, ore grade…to access the rest of the interview, click here

Disclaimer: Largo Resources Ltd. is an advertorial member of InvestorIntel.