"We are extremely pleased with Energy Fuels' vanadium production to date," said Mark S Chalmers, president and CEO at Energy.
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"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. We also soon expect to sell into other industries that demand higher-purity product. In addition, we are very encouraged to see vanadium prices remain strong, and at levels that we believe will support attractive margins."
The company expects to reach rates of 200,000 to 225,000 pounds of high-purity vanadium pentoxide (V2O5) per month by the end of the first quarter of 2019 or sooner, it said in Tuesday's statement.
Energy added it will continue its planned ramp-up in output and will provide markets with further updates, as well as on vanadium test mining program at the La Sal complex in coming months.
In terms of the vanadium market, the firm believes that basic fundamentals that led to the price increases observed in 2018 have not changed, including significant production cuts in China for pollution control and new specifications for rebar in China that mandate increased vanadium content.
Shares in Toronto slipped 1.7% to $3.97 each.
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