Largo Resources delays capital return amid falling vanadium prices

Despite a record performance in 2018, vanadium producer Largo Resources “has adopted the conservative strategy” of not returning capital to shareholders “at this time” against a backdrop of lower vanadium prices, the company said in the week ended Friday June 28.

In 2018, Largo Resources benefited from a period of strong vanadium prices which helped it to achieve revenues of $521.4 million in 2018, compared with $167.7 million in 2017. That 211% year-on-year increase led to the company’s highest-ever annual revenue. Ferro-vanadium prices in the Chinese and European markets both hit all-time highs last year, partly due to an expected increase in demand arising from the implementation of new rebar manufacturing standards in China on November 1. But prices began to drop sharply late last year, when market participants realized that enforcement of the revised rebar policy...

Published

Ewa Manthey

July 01, 2019

20:20 GMT

London