Largo V2O5 Production Outlook Cut as Brazil Ore Grades Weaken

Largo

Largo has revised its V2O5 production outlook for 2025, citing lower ore grades and equipment issues at its Maracás Menchen mine. The Largo V2O5 production outlook now ranges between 8,500–10,500 tonnes, down from the previous forecast of 9,500–11,500 tonnes issued in February.

Lower Grades and Mining Constraints Impact Q1 Output

Largo’s first-quarter vanadium pentoxide (V2O5) production dropped by 25% year-on-year to 1,297 tonnes. The sharp decline stems from a 12-percentage point fall in ore grade to 41%, alongside reduced equipment availability. Total ore mined fell by 26% to 446,614 tonnes, while vanadium concentrate output slid by 29% to 53,245 tonnes.

Despite these setbacks, recovery rates improved to 77.8% from 70.5%, suggesting operational efficiency gains within the plant. However, the company also adjusted its sales volume guidance for 2025 to 6,500–8,500 tonnes, down from the earlier 7,500–9,500 tonnes.

Ilmenite Segment Shows Mixed Signals

Largo maintained its ilmenite production guidance at 25,000–35,000 tonnes, with sales volume expectations of 20,000–30,000 tonnes for the year. However, first-quarter ilmenite production dropped 36% to 6,162 tonnes. In contrast, unit sales surged to 8,647 tonnes—an impressive jump from just 513 tonnes in the same period last year, indicating a backlog clearance or improved market demand.

The company remains focused on accessing higher-grade vanadium ore later this year, which may support a recovery in production levels in the second half of 2025.

The Metalnomist Commentary

Largo’s reduced V2O5 production outlook reflects the ongoing operational volatility in specialty metals mining. While short-term constraints weigh on vanadium output, improved recovery and ilmenite sales offer some upside. Investors will closely watch Largo’s second-half mining performance in Brazil.