(MENAFN- ProactiveInvestors) Shares of () jumped almost 13 percent Thursday after saying it is unaware of the reason for a dramatic decline in its share price over recent weeks.
The company reiterated that it is ramping up production at its Maracas Menchen vanadium mine in Brazil with commercial shipments ongoing on a weekly basis.
It is still targeting to reach phase 1 run rate capacity of 9600 tons by the third quarter this year.
Shares climbed 12.9 percent to C$1.05 in Toronto on Thursday morning. Year-to-date the stock has declined some 39 percent.
Largo has been producing vanadium from Maracas since last August. Once it reaches its phase 1 target - at which point it expects to make up 7 percent of the global vanadium market - expansion will certainly be on the horizon with phase 2 capacity of about 14600 tonnes targeted for 2016-2017.
The Maracas Menchen mine boasts the highest grade vanadium deposit yet discovered. Aside from renewable energy vanadium is also essential for the production of steel with many aircraft and automotive manufacturers addressing demand for lighter and tougher materials which contribute to reduced fuel consumption and emissions.
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