Clearly, one of the most powerful and most well-telegraphed opportunities on the OTC over the past 6 months is Largo Resources Ltd (OTCMKTS:LGORF). You remember this one when we talked about Leon Cooperman raving about it in July? The story has rolled on for another 150% in 3 months. Now, to further amplify matters, the company just announced that Instituto do Meio Ambiente e Recursos Hidricos has published the Company’s environmental license for the Maracás Menchen Mine expansion project.
According to the release, “As previously announced on April 16, 2018, Largo has commenced an expansion project that focuses on increasing the production capacity of the milling, fusion (deammoniator, furnace and flaking wheel), leaching and filtering areas. The expansion will see production capacity at the Maracás Menchen Mine increase 25% from the nameplate rate of approximately 800 tonnes per month of vanadium pentoxide to 1,000 tonnes per month.”
Largo Resources Ltd (OTCMKTS: LGORF) bills itself as a natural resource development and exploration company, engages in the acquisition, exploration, and development of mining and exploration properties located in Brazil and Canada. The company primarily explores for vanadium, iron, tungsten, molybdenum, chromite, palladium, and platinum group metals. Its flagship project is the Maracás Menchen Mine that consists of 18 concessions covering an area of 17,690.45 hectares located in Bahia State, Brazil.
The company was formerly known as Consolidated Kaitone Holdings Ltd. and changed its name to Largo Resources Ltd. in June 2004. Largo Resources Ltd. was incorporated in 1988 and is headquartered in Toronto, Canada.
Moreover, Largo Resources Ltd. is a mid-tier mining development company primarily focused on the production of vanadium at its Maracas Menchen Mine in Brazil.
According to company materials, “Largo is a Toronto-based strategic mineral company focused on the production of vanadium flake, high purity vanadium flake and high purity vanadium powder at the Maracás Menchen Mine located in Bahia State, Brazil. The Company’s common shares are principally listed on the Toronto Stock Exchange.“
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As noted above, LGORF just announced that Instituto do Meio Ambiente e Recursos Hidricos has published the Company’s environmental license for the Maracás Menchen Mine expansion project.
Traders will note flat action for shareholders of the company during the trailing month. What’s more, the name has seen interest climb, with an increase in recent trading volume of a bit over 160% above the average volume levels in play in this stock over the longer term.
Mark Smith, Chief Executive Officer for Largo, stated: “Securing this permit was a key milestone in our expansion project and we now look forward to delivering a substantial increase in capacity on time and on budget. Demand for vanadium continues to increase worldwide and the supply side fundamentals continue to indicate a shortage of the commodity in the near-term. Largo continues to believe an elevated price environment for vanadium will persist and being one of the lowest cost producers of the metal, should continue to benefit greatly as a result.”
Now commanding a market cap of $1.59B, LGORF has a significant war chest ($285.4M) of cash on the books, which stands against about $271.5M in total current liabilities. One should also note that debt has been growing over recent quarters. LGORF is pulling in trailing 12-month revenues of $296.9M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 188.6%. We will update the story again soon as developments transpire. Sign-up for continuing coverage on shares of $LGORF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $LGORF, either long or short, and we have not been compensated for this article.