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Largo Inc (symbol: LGO) is a mid-tier mining development company, primarily focused on the production of vanadium at its flagship Maracás Menchen Mine in Brazil. Largo has achieved a notable accomplishment in the mining sector by successfully financing, constructing, and bringing a unique commodity project to production, even in challenging market conditions.
The Maracás Menchen Mine boasts the highest-grade vanadium deposit ever discovered, positioning Largo as a low-cost producer. With a strategic off-take agreement with commodities giant Glencore, Largo is well-poised to become a leading global producer of vanadium, expected to generate substantial cash flows.
Vanadium is an essential alloy used to strengthen steel while reducing its weight. Vanadium-enhanced steels are integral to a wide range of products, including rebar, automobiles, and transportation infrastructure, reflecting a compound annual growth rate of over 6% for the past several years.
Apart from its mining operations, Largo Inc is committed to advancing renewable energy storage solutions. Through Largo Clean Energy, the company is developing vanadium redox flow battery technology, which promises innovative energy storage solutions. The company produces and supplies high-quality vanadium products such as VPURE Flake, VPURE+ Flake, and VPURE+ Powder.
Largo Inc operates through six segments: Sales & Trading, Mine Properties, Corporate, Exploration and Evaluation Properties, Largo Clean Energy, and Largo Physical Vanadium. The Sales & Trading segment is a significant revenue generator for the company, driving its financial performance.
With its extensive operations and strategic initiatives, Largo Inc continues to make significant strides in both the mining and renewable energy sectors, solidifying its position as a noteworthy player in the global market.
Stryten Energy and Largo have formed Storion Energy , a new company focused on domestic vanadium redox flow batteries (VRFB) for long-duration energy storage. The venture aims to provide cost-competitive electrolyte production through an Earth to Energy™ model, leveraging Largo's western hemisphere vanadium mine and Stryten's reactor design.
Storion will deliver vanadium electrolyte at less than $0.02 per kilowatt-hour, achieving the U.S. Department of Energy's goal of reducing storage costs to $0.05/kWh ahead of schedule. The company will have exclusive rights to offer LPV-owned vanadium as electrolyte, utilizing a unique leasing model to make VRFB technology more competitive against lithium-based solutions for utility-scale deployments of 10 MWhs and greater.
Largo (TSX/NASDAQ: LGO) announced a joint venture agreement between its subsidiary Largo Clean Energy Corp. (LCE) and Stryten Critical E-Storage to form Storion Energy. The venture aims to establish a leading U.S.-based manufacturer of vanadium electrolyte and battery components for long duration energy storage (LDES).
Under the agreement, both LCE and Stryten will contribute vanadium flow battery-related assets and hold 50% equity interest in Storion. Stryten will pay US$1 million in cash to Largo and contribute US$6 million to Storion over time. The partnership leverages Storion's patented purification process and is expected to accelerate vanadium electrolyte manufacturing and flow battery deployment, potentially increasing demand for vanadium from Largo Physical Vanadium Corp.
Largo has filed a technical report for its Maracás Menchen Mine in Brazil, highlighting significant extensions in mine life and resource growth. The report reveals a 31-year operating mine life until 2054, representing a 13-year increase from the 2021 report. The project demonstrates strong economics with a post-tax NPV7% of $1.1 billion and post-tax LOM undiscounted cash flow of $3.8 billion.
The report shows substantial increases in mineral reserves and resources, with total Proven and Probable Reserves of 101.03 mt grading 0.56% V2O5, representing a 67% increase in total Mineral Reserves. The project will produce 346.6 kt of V2O5 equivalent, 7,766.6 kt of ilmenite concentrate, and offers a TiO2 pigment production opportunity of 2,499 kt.
Largo reported Q3 2024 financial results with revenues of $29.9 million ($27.2M from vanadium, $2.7M from ilmenite), down from $44.0M in Q3 2023. The company achieved significant cost reductions, with operating costs decreasing 31% to $29.5M and cash operating costs excluding royalties dropping 43% to $3.12 per pound. V2O5 production increased 42% to 3,072 tonnes, marking the highest quarterly output in seven quarters. Net loss improved 15% to $10.1M. The company maintains a cash balance of $30.5M with debt of $93.7M, and recently secured a vanadium supply agreement worth approximately $23.5M.
Largo (TSX: LGO) (NASDAQ: LGO) has announced it will release its third quarter 2024 financial results on Tuesday, November 12, 2024. The company will host a conference call to discuss these results on Thursday, November 14 at 10:00 a.m. ET. Participants can join through automated registration or direct dial-in. The conference call will be available for replay via local and toll-free numbers with passcode 69391#.
Largo has announced significant updates to its vanadium-titanium operation in Brazil, including a 67% increase in Mineral Reserves and a 64% increase in Mineral Resources. The updated Life of Mine Plan extends operations to 31 years, with a post-tax NPV7% of $1.1 billion and post-tax life-of-mine cash flow of $3.8 billion. The project includes total Proven and Probable Reserves of 101.03 mt grading 0.56% V2O5, with planned production of 346.6 kt V2O5, 7,766.6 kt ilmenite concentrate, and 2,499 kt TiO2 pigment. The company plans phased expansions including a second kiln by 2027 and TiO2 pigment plant development reaching 100 ktpy by 2031.
Largo reports strong Q3 2024 performance with V2O5 production of 3,072 tonnes, a 42% increase from Q3 2023. Highlights include:
- Highest quarterly production in seven quarters
- Global V2O5 recovery rate of 81.1%, up 6% from Q3 2023
- Ilmenite production up 90% to 16,383 tonnes
- Ilmenite sales increased 60% to 19,572 tonnes
Largo signed a binding agreement to supply 2,100 tonnes of V2O5 for $23.5 million, optimizing inventory. The average V2O5 benchmark price decreased 4% to $5.71/lb in Q3. Despite lower spot market demand affecting sales, Largo maintains its 2024 guidance and focuses on operational efficiency and sales strategy optimization.
Largo (TSX: LGO) (NASDAQ: LGO) has promoted Francesco D'Alessio to Chief Commercial Officer, effective immediately. This appointment is part of a broader strategy to reposition Largo's sales and trading operations to capitalize on emerging opportunities in the vanadium market. With over 17 years of experience in metals sales and trading, D'Alessio is expected to lead Largo's realigned sales strategy, positioning the company for growth amid evolving market conditions and anticipated long-term increases in vanadium demand.
The International Energy Agency (IEA) projects vanadium demand to rise over 500% by 2050 under a net zero scenario, driven by clean energy storage and high-strength steel alloys. D'Alessio, who joined Largo in 2019, will oversee the strategic review process of Largo Clean Energy Corp. (LCE) to maximize its value. As part of this transition, Paul Vollant has left his position at Largo.
Largo Inc. (TSX: LGO) (NASDAQ: LGO), a leading vanadium and ilmenite producer, highlights progress in cost reduction initiatives at its Maracás Menchen Mine in Brazil. The company's cash operating costs excluding royalties per pound have shown improvement when adjusted for non-recurring items, particularly inventory write-downs due to declining vanadium prices.
Key points:
- Q2 2024 adjusted cash operating costs: $4.20/lb, down from $5.33/lb in Q1 2024
- Q2 2024 saw $6,688,000 in inventory write-downs
- Produced V2O5 sold in Q2 2024: 3,776,000 lbs, down from 5,753,000 lbs in Q1
Interim CEO Daniel Tellechea emphasized the company's focus on streamlining operations and reducing costs to navigate market challenges and deliver long-term shareholder value.
Largo Inc. (TSX: LGO) (NASDAQ: LGO) reported Q2 2024 financial results with revenues of $28.6 million, down from $53.1 million in Q2 2023. The decline was primarily due to lower vanadium prices and reduced sales volumes. The company reported a net loss of $14.5 million, compared to a $6.0 million loss in Q2 2023. Key highlights include:
- V2O5 equivalent production of 2,689 tonnes
- Cash operating costs excluding royalties of $5.97 per lb sold
- Cash balance of $35.8 million and debt of $84.7 million
- Revised 2024 ilmenite concentrate production and sales guidance
- Rescheduled annual kiln maintenance to November 2024
The company applauded China's new mandatory steel rebar standards, which are expected to increase vanadium demand in the steel sector. Largo remains focused on returning to profitability through cost reduction initiatives and operational efficiency improvements.
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