Specifically, the company is producing about 175,000–200,000 pounds of vanadium pentoxide (V2O5) a month. With ramp-up continuing, Energy Fuels expects to reach full production by the end of Q1/19 of 200,000–225,000 pounds of high-purity V2O5.
During January, Energy Fuels continued increasing production, attained greater purity levels of the product and finished tinkering with its process, the company reported.
As for vanadium shipments, initial amounts are "being allocated for conversion to ferrovanadium that will be sold into spot metallurgical markets," the release explained. The company expects to also sell finished vanadium to diverse customers in various industries that require a higher-purity product. Those end users are in the metallurgy, aerospace, chemical and battery spaces, among others.
Energy Fuels reported the current midpoint spot price of V2O5 in Europe is $17.25 per pound, up 11% from year-end 2018, when it was $15.50 per pound, according to Metal Bulletin.
"We are extremely pleased with Energy Fuels’ vanadium production to date. We believe our methodical ramp-up is paying dividends, as we are now producing an excellent vanadium product at increasingly higher rates and purities. The Company has discussed vanadium sales with potential buyers for the past several months, and now that we are producing commercial quantities of finished product, we are beginning to make shipments that will initially be converted and sold as ferrovanadium,” Mark S. Chalmers, president and CEO of Energy Fuels, commented.
"We also soon expect to sell into other industries that demand higher-purity product," Chalmers stated in the release. "In addition, we are very encouraged to see vanadium prices remain strong, and at levels that we believe will support attractive margins. We expect to continue the planned ramp-up, and we will provide markets with further updates on our vanadium production at the Mill, as well as on our vanadium test mining program at the La Sal Complex, in the coming months."
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