hi dlovely, how do TNG compare with Largo Marcàs project. I was hoping someone would answer that question but no. I cautiously will try.
Largo, registered Toronto stock exchange with c 600 mill shares on issue and a current MC that is c $1.7 bill, has hit 2 bill.
Current V project is Maracàs Menchen Mine in Brazil. The Campell strike currently mined is an open pit primary V mine with an estimated resource of 19.78 mill tonne 10 year remaining LOM. The resource is high grade at c 1.% and low impurity. The operation had it maiden production run in 2014 and was underwritren by a 100% 6 year off take agreement that expires in 2020. The total advance was as i recall $600 mill but that may have include an equity componebt by way of share issue.
The project focuses on V2O5 production and hit c 10,000 tonnes in 2018 with 200 tonne being "high purity" V. After tax surplus was (im no accountant) 77 mill. Operating costs was $4.15/lb which is at the very bottom end the the recognised range for primary V production via standard processing in a tataniferious magnetite resource due to lack of impurities. I suspect profits are held back due to the terms of the Glencore off take terms
Largo has recently embarked on a fresh drilling programme "Noca Ampora Norte" deposit, a serously exotic name for a prospect just 6 km from their current project but they have come up trumps big time with a 1.7 by .8 km strike , shallow and rich in V. Average hit in completed drilling .87 V and is now subject to mining licence application.
Historically Largo could not have got off the ground without Glencore and had at least a year of reconfiguration to get to an acceptable production cost.
They are a great case study for the bunch off wanna bees who have produced PFS's etc suggesting low production costs on standard acid leach salt fired processing plants. They will not get lower costings that largo has achieved and they will struggled to match them. I use the Largo experience as a bench mark when i read the shite produced by some of these companies.
So how does Largos compare to TNG. Well it doesnt. What it has in common is a big as backer. Largo = Glencore, TNG = SMS. What largo shows is that only the very best projects utilising conventional extraction processes will succeed. TNG on the other hand has taken a revolutionary path and backed by SMS says its prodution costs for V will be $2.50. Its a no brainer TNG should hit production.
