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Largo Reports Q4 and Full Year 2024 Financial Results; Announces Operational Turnaround Plan and Additional Cost Optimization Initiatives

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Largo (TSX: LGO) (NASDAQ: LGO) reported Q4 and full-year 2024 financial results, highlighting significant challenges and operational changes. Q4 2024 revenues decreased to $24.3 million from $44.2 million in Q4 2023, with an additional $13.6 million from a vanadium inventory supply agreement. The company reported a Q4 net loss of $13.0 million.

Notable improvements include a 30% reduction in Q4 operating costs and a 39% decrease in adjusted cash operating costs per pound to $3.05. Annual V2O5 production reached 9,264 tonnes in 2024, within revised guidance but down from 9,681 tonnes in 2023. The company implemented an operational turnaround plan focusing on cost optimization and efficiency improvements.

Vanadium market conditions remained challenging, with European V₂O₅ prices averaging $5.34 per pound in Q4 2024, down 17% year-over-year. The company appointed new Co-Chief Operating Officers and is pursuing strategic refinancing options to strengthen its liquidity position.

Largo (TSX: LGO) (NASDAQ: LGO) ha riportato i risultati finanziari del quarto trimestre e dell'intero anno 2024, evidenziando sfide significative e cambiamenti operativi. I ricavi del Q4 2024 sono diminuiti a 24,3 milioni di dollari rispetto ai 44,2 milioni di dollari del Q4 2023, con ulteriori 13,6 milioni di dollari derivanti da un accordo di fornitura di inventario di vanadio. L'azienda ha riportato una perdita netta di 13,0 milioni di dollari nel Q4.

Tra i miglioramenti significativi si segnala una riduzione del 30% dei costi operativi nel Q4 e una diminuzione del 39% dei costi operativi in contante rettificati per libbra a 3,05 dollari. La produzione annuale di V2O5 ha raggiunto 9.264 tonnellate nel 2024, rimanendo all'interno delle previsioni riviste ma in calo rispetto alle 9.681 tonnellate del 2023. L'azienda ha implementato un piano di rilancio operativo focalizzato sull'ottimizzazione dei costi e sul miglioramento dell'efficienza.

Le condizioni del mercato del vanadio sono rimaste difficili, con i prezzi europei del V₂O₅ che hanno registrato una media di 5,34 dollari per libbra nel Q4 2024, in calo del 17% rispetto all'anno precedente. L'azienda ha nominato nuovi Co-Amministratori Operativi e sta perseguendo opzioni di rifinanziamento strategico per rafforzare la propria posizione di liquidità.

Largo (TSX: LGO) (NASDAQ: LGO) reportó los resultados financieros del cuarto trimestre y del año completo 2024, destacando desafíos significativos y cambios operativos. Los ingresos del Q4 2024 disminuyeron a 24,3 millones de dólares desde 44,2 millones de dólares en el Q4 2023, con 13,6 millones de dólares adicionales provenientes de un acuerdo de suministro de inventario de vanadio. La compañía reportó una pérdida neta de 13,0 millones de dólares en el Q4.

Entre las mejoras notables se incluye una reducción del 30% en los costos operativos del Q4 y una disminución del 39% en los costos operativos en efectivo ajustados por libra a 3,05 dólares. La producción anual de V2O5 alcanzó 9.264 toneladas en 2024, dentro de la guía revisada pero por debajo de las 9.681 toneladas en 2023. La compañía implementó un plan de reestructuración operativo centrado en la optimización de costos y mejoras en la eficiencia.

Las condiciones del mercado del vanadio siguieron siendo desafiantes, con precios europeos de V₂O₅ que promediaron 5,34 dólares por libra en el Q4 2024, una disminución del 17% interanual. La compañía nombró nuevos Co-Directores de Operaciones y está buscando opciones de refinanciamiento estratégico para fortalecer su posición de liquidez.

Largo (TSX: LGO) (NASDAQ: LGO)는 2024년 4분기 및 연간 재무 결과를 보고하며, 상당한 도전과 운영 변화를 강조했습니다. 2024년 4분기 매출은 2023년 4분기 4420만 달러에서 2430만 달러로 감소했으며, 바나듐 재고 공급 계약으로 추가 1360만 달러가 발생했습니다. 회사는 4분기에 1300만 달러의 순손실을 기록했습니다.

주목할 만한 개선 사항으로는 4분기 운영 비용이 30% 감소하고, 조정된 현금 운영 비용이 파운드당 3.05달러로 39% 감소했습니다. 2024년 연간 V2O5 생산량은 수정된 가이던스 내에서 9264톤에 도달했지만, 2023년 9681톤에서 감소했습니다. 회사는 비용 최적화 및 효율성 개선에 중점을 둔 운영 전환 계획을 시행했습니다.

바나듐 시장 상황은 여전히 도전적이었으며, 2024년 4분기 유럽 V₂O₅ 가격은 파운드당 평균 5.34달러로, 전년 대비 17% 하락했습니다. 회사는 새로운 공동 COO를 임명하고 유동성 위치를 강화하기 위한 전략적 재정 옵션을 추구하고 있습니다.

Largo (TSX: LGO) (NASDAQ: LGO) a publié ses résultats financiers du quatrième trimestre et de l'année 2024, mettant en évidence des défis significatifs et des changements opérationnels. Les revenus du Q4 2024 ont diminué à 24,3 millions de dollars contre 44,2 millions de dollars au Q4 2023, avec 13,6 millions de dollars supplémentaires provenant d'un accord de fourniture de stocks de vanadium. L'entreprise a enregistré une perte nette de 13,0 millions de dollars au Q4.

Parmi les améliorations notables, on note une réduction de 30 % des coûts d'exploitation au Q4 et une baisse de 39 % des coûts d'exploitation en espèces ajustés par livre à 3,05 dollars. La production annuelle de V2O5 a atteint 9 264 tonnes en 2024, dans les prévisions révisées mais en baisse par rapport à 9 681 tonnes en 2023. L'entreprise a mis en œuvre un plan de redressement opérationnel axé sur l'optimisation des coûts et l'amélioration de l'efficacité.

Les conditions du marché du vanadium sont restées difficiles, les prix européens du V₂O₅ ayant atteint en moyenne 5,34 dollars par livre au Q4 2024, soit une baisse de 17 % par rapport à l'année précédente. L'entreprise a nommé de nouveaux co-directeurs des opérations et recherche des options de refinancement stratégique pour renforcer sa position de liquidité.

Largo (TSX: LGO) (NASDAQ: LGO) hat die Finanzzahlen für das vierte Quartal und das Gesamtjahr 2024 veröffentlicht, wobei erhebliche Herausforderungen und betriebliche Veränderungen hervorgehoben wurden. Die Einnahmen im Q4 2024 sanken auf 24,3 Millionen Dollar von 44,2 Millionen Dollar im Q4 2023, mit zusätzlichen 13,6 Millionen Dollar aus einer Liefervereinbarung für Vanadiumbestände. Das Unternehmen berichtete im Q4 einen Nettoverlust von 13,0 Millionen Dollar.

Bemerkenswerte Verbesserungen umfassen eine Reduzierung der Betriebskosten im Q4 um 30% und einen Rückgang der angepassten Barbetriebskosten pro Pfund auf 3,05 Dollar um 39%. Die jährliche V2O5-Produktion erreichte 2024 9.264 Tonnen, innerhalb der überarbeiteten Prognose, aber ein Rückgang gegenüber 9.681 Tonnen im Jahr 2023. Das Unternehmen setzte einen operativen Turnaround-Plan um, der sich auf Kostenoptimierung und Effizienzsteigerungen konzentriert.

Die Marktbedingungen für Vanadium blieben herausfordernd, wobei die europäischen V₂O₅-Preise im Q4 2024 im Durchschnitt bei 5,34 Dollar pro Pfund lagen, was einem Rückgang von 17% im Jahresvergleich entspricht. Das Unternehmen ernannte neue Co-Chief Operating Officers und verfolgt strategische Refinanzierungsoptionen, um seine Liquiditätsposition zu stärken.

Positive
  • 30% reduction in Q4 2024 operating costs compared to Q4 2023
  • 39% decrease in adjusted cash operating costs to $3.05 per pound in Q4 2024
  • 195% improvement in Q4 2024 Adjusted EBITDA to $2.3 million
  • 16% increase in quarterly V2O5 sales volume to 3,033 tonnes in Q4 2024
Negative
  • 45% decrease in Q4 2024 revenues to $24.3 million vs Q4 2023
  • Net loss widened to $50.6 million in 2024 from $32.4 million in 2023
  • 37% decline in annual revenues to $124.9 million in 2024
  • V2O5 production decreased to 9,264 tonnes in 2024 from 9,681 tonnes in 2023
  • 17% decline in European vanadium prices in Q4 2024 year-over-year

Insights

Largo's Q4 and FY2024 results reveal significant financial challenges despite some operational improvements in cost control. The $24.3 million Q4 revenue represents a 45% decline from Q4 2023, with full-year revenues down 37% to $124.9 million. The company's net loss widened to $50.6 million for 2024 (vs. $32.4 million in 2023).

On the positive side, Largo achieved substantial cost reductions, with Q4 operating costs decreasing 30% year-over-year and adjusted cash operating costs excluding royalties dropping 39% to $3.05 per pound. These cost initiatives generated an improved Q4 adjusted EBITDA of $2.3 million - a 195% improvement from Q4 2023.

However, Largo faces persistent market headwinds with European V₂O₅ prices down 17% year-over-year to $5.34 per pound in Q4. Production volumes also declined, with Q4 V₂O₅ output at 1,775 tonnes (vs. 2,768 tonnes in Q4 2023). Production challenges continued into early 2025, with January/February output substantially below quarterly run-rates.

The announced turnaround strategy focuses on mining contractor improvements, drilling efficiency, and processing optimizations. While cost reductions show management's commitment to operational discipline, the widened annual losses and continued production difficulties reveal significant challenges that the turnaround must address. Liquidity concerns are evident as the company explores refinancing options amid challenging market conditions.

All dollar amounts expressed are in thousands of U.S. dollars unless otherwise indicated.

Q4, Full Year 2024 and Other Highlights

  • Revenues of $24.3 million in Q4 2024 vs. $44.2 million in Q4 2023; Revenues per pound sold1 of $5.70 in Q4 2024 vs. $7.69 in Q4 2023; In addition, the Company received $13.6 million related to the delivery of 1,200 tonnes as part of its vanadium inventory supply agreement
  • Operating costs of $30.2 million in Q4 2024, 30% below Q4 2023; Adjusted cash operating costs excluding royalties per pound1 of $3.05 in Q4 2024, 39% below Q4 2023, reflecting the success in cost reduction measures throughout 2024
  • Adjusted EBITDA1 improved by 195% in Q4 2024 to $2.3 million and mining operations adjusted EBITDA1 improved by 27% to $4.5 million from $3.5 million in Q4 2023, despite the negative impact of the maintenance shutdown in Q4 2024
  • Net loss of $13.0 million in Q4 2024, which included $2.4 million in non-recurring items vs. net loss of $13.3 million in Q4 2023, which included $5.9 million in non-recurring items; Basic loss per share of $0.19 in Q4 2024 vs. basic loss per share of $0.21 in Q4 2023
  • Revenues of $124.9 million in 2024, 37% below 2023; Revenues per pound sold1 of $6.40 in 2024 vs. $8.66 in 2023; In addition, the Company received $13.6 million related to the delivery of 1,200 tonnes as part of its vanadium inventory supply agreement
  • Operating costs of $145.8 million in 2024, 17% below 2023; Adjusted cash operating costs excluding royalties per pound1 of $4.05 in 2024, 22% lower than 2023, reflecting the company’s cost reduction efforts throughout 2024
  • Adjusted EBITDA¹ was a loss of $2.1 million compared to positive adjusted EBITDA1 of $11.9 million in 2023
  • Net loss of $50.6 million in 2024, which included $18.7 million in non-recurring items vs. net loss of $32.4 million in 2023, which included $9.6 million in non-recurring items; Basic loss per share of $0.78 in 2024 vs. basic loss per share of $0.51 in 2023
  • V2O5 production of 1,775 tonnes in Q4 2024 vs. 2,768 tonnes in Q4 2023; Annual V2O5 production of 9,264 tonnes in 2024 vs. 9,681 tonnes in 2023; Within the Company’s revised 2024 production guidance range of 9,000 – 11,000 tonnes
  • Annual and Q4 2024 production was impacted by two kiln maintenance shutdowns during the year—one in Q1 2024 as per the Company's regular schedule, and another advanced from Q1 2025 into Q4 2024 to mitigate potential production disruptions typically associated with the early-year rainy season
  • Quarterly sales of 3,033 tonnes of V2O5 equivalent (inclusive of 8 tonnes of purchased material and 1,200 tonnes related to the Company’s vanadium inventory supply agreement) in Q4 2024, a 16% increase over the 2,605 tonnes in sold Q4 2023
  • Annual V2O5 equivalent sales of 9,600 (inclusive of 415 tonnes of purchased material and 1,200 tonnes related to its vanadium inventory supply agreement) tonnes in 2024 vs. 10,396 tonnes in 2023; Within the Company’s annual 2024 sales guidance of 8,700 – 10,700 tonnes
  • The Company produced 10,292 tonnes of ilmenite concentrate in Q4 2024 and 44,863 tonnes in 2024; Quarterly ilmenite concentrate sold of 10,570 tonnes in Q4 2024 and 42,916 tonnes sold in 2024

Vanadium Market Update

  • Vanadium prices continued to face downward pressure in European and Chinese markets, primarily driven by reduced demand from the steel and infrastructure sectors and persistent oversupply from Chinese and Russian producers; In Q4 2024, the average benchmark price for V₂O₅ in Europe was $5.34 per pound, representing a 17% decrease compared to Q4 2023
  • U.S. ferrovanadium pricing has experienced recent improvements, with prices rising 9% since the start of 2025, primarily driven by buying interest amid recent geopolitical developments and policy shifts impacting supply dynamics
  • As of March 20, 2025, the average benchmark ferrovanadium price per pound of V was $15.25 in the U.S. and as of March 21, 2025, the average benchmark price per pound of V₂O₅ was $5.13 in Europe

TORONTO--(BUSINESS WIRE)-- Largo Inc. ("Largo" or the "Company") (TSX: LGO) (NASDAQ: LGO) today reported financial and operational results for the three and twelve months ended December 31, 2024. Amid challenging market conditions and declining vanadium prices, the Company has increased its focus on operational improvements, further cost reductions, and productivity enhancements at its Maracás Menchen Mine. The Company achieved annual vanadium pentoxide (“V₂O₅”) equivalent sales of 9,600 tonnes, with adjusted cash operating costs excluding royalties per pound¹ sold improving significantly to $3.04 in Q4 2024 down from $5.04 in Q4 2023.

Largo Reports Q4 and Full Year 2024 Financial Results; Announces Operational Turnaround Plan and Additional Cost Optimization Initiatives

Largo Reports Q4 and Full Year 2024 Financial Results; Announces Operational Turnaround Plan and Additional Cost Optimization Initiatives

Daniel Tellechea, Interim CEO and Director of Largo, stated: “We recognize the significant operational and market challenges Largo has encountered and are taking decisive steps to reposition the Company. While our cost reduction initiatives have already delivered measurable results—such as a 30% reduction in operating costs in Q4 2024 compared to the prior year—we continue to face production challenges and near-term financial pressures that require focused action.” He continued: “As part of our operational turnaround strategy, we’ve implemented a number of critical initiatives in recent months to further enhance productivity and strengthen cost controls. With the appointment of Gordon Babcock and Luis Rendón as Co-Chief Operating Officers in February 2025, we’ve further intensified our focus on execution and efficiency across the business. Under their leadership, our team is actively identifying and acting on additional opportunities to improve operational performance.”

He concluded: “We are also prioritizing efforts to reinforce our liquidity position and are pursuing a range of strategic and refinancing options to support ongoing operations. Driving a successful turnaround remains a company-wide priority, and we remain focused on taking the steps needed to help strengthen Largo’s operational and financial foundation for the future.”

Financial and Operating Results – Highlights

(thousands of U.S. dollars, except as otherwise stated)

Three months ended

Year ended

Dec. 31, 2024

Dec. 31, 2023

Dec. 31, 2024

Dec. 31, 2023

Revenues

24,268

44,170

124,920

198,684

Operating costs

(30,194)

(43,218)

(145,818)

(174,758)

Net income (loss)

(12,990)

(13,301)

(50,565)

(32,358)

Basic earnings (loss) per share

(0.19)

(0.21)

(0.78)

(0.51)

Adjusted EBITDA1

2,337

793

(2,076)

11,948

Mining operations adjusted EBITDA1

4,466

3,503

7,976

29,992

Cash provided before working capital items (operating activities)

18,563

43

16,038

9,335

Cash operating costs excl. royalties ($/lb) 1

3.67

5.44

4.84

5.30

Adjusted cash operating costs excl. royalties1 ($/lb)

3.05

5.04

4.05

5.19

Cash

22,106

42,714

22,106

42,714

Debt

92,280

75,000

92,280

75,000

Total mined – dry basis (tonnes)

3,673,416

3,490,711

13,949,665

14,864,394

Total ore mined (tonnes)

476,742

473,958

2,249,759

1,752,982

Effective grade of ore milled2 (%)

0.73

1.03

0.88

1.04

V2O5 equivalent produced (tonnes)

1,775

2,768

9,264

9,681

Ilmenite concentrate produced (tonnes)

10,292

8,970

44,863

8,970

Key Highlights

  • During 2024, the Company recognized revenues of $118.5 million (2023 – $198.6 million) from the sales of 8,400 tonnes of V2O5 equivalent (2023 – 10,396 tonnes) as well as revenues from ilmenite sales of $6.4 million (2023 - $nil).
  • The Company recorded a net loss of $50.6 million in 2024 compared with a net loss of $32.4 million in 2023, largely driven by a 37% decrease in revenues. This was partially offset by a decrease in certain expenses, most notably a 17% decrease in operating costs, as well as a 29% decrease in professional consulting and management fees, a 54% decrease in general and administrative expenses and a 45% decrease in technology start-up costs.
  • In 2024, the Company’s operating costs decreased by 17% to $30.2 million in 2024 compared to 43.2 million in 2023. The decrease in operating costs in 2024 was largely driven by a 34% decrease in direct mine and production costs. This decrease reflects the 19% decrease in vanadium sold in 2024, as well as the impact of the Company's previously announced initiatives to reduce production costs and improve productivity. Further, shared mining and production costs up to the milling process are allocated between vanadium and ilmenite, which reduces the amount recognized in direct mine and production costs for vanadium.
  • Adjusted cash operating costs excluding royalties per pound1, which excludes the impact of inventory write-downs for produced products of $2.5 million for Q4 2024 (Q4 2023 – $nil), was $3.05 per lb, compared with $5.04 for Q4 2023. The decrease in unit costs seen in Q4 2024 compared with Q4 2023 is also largely due to the impact of the Company's previously announced initiatives to reduce production costs and improve productivity, including reducing haulage distances, reducing the number of contractors and a comprehensive review of all contracts. The Company expects to continue seeing the benefits of these initiatives in its financial results going forward.
  • For 2024, total professional, consulting, and management fees decreased by 29% compared to 2023, while other general and administrative expenses declined by 54%. These reductions reflect the Company's continued emphasis on cost discipline, decreased activity and headcount at LCE following the initiation of the strategic review, and an expense recovery of $1.8 million primarily related to lower legal provisions. Additionally, technology start-up costs decreased by 45% in 2024 compared with 2023 primarily due to a decrease in activities at Largo Clean Energy Corp. (“LCE”) in 2024 as the installation of its battery project nears conclusion.
  • Subsequent to Q4 2024, production in January 2025 was 392 tonnes of V2O5 equivalent with 503 tonnes produced in February 2025. Production in January and February 2025 was impacted by temporarily mining lower-grade ore zones according to the mine sequencing plan, reduced mining equipment availability, and operational adjustments following the kiln refractory replacement completed in Q4 2024. V2O5 equivalent sales were 687 tonnes in January 2025, with 551 tonnes sold in February 2025.
  • Subsequent to Q4 2024, ilmenite concentrate production was 2,897 tonnes of in January 2025 and 1,477 tonnes in February 2025 with sales of 4,397 tonnes in January 2025 and 2,255 tonnes in February 2025.

The information provided within this release should be read in conjunction with Largo's annual consolidated financial statements for the years ended December 31, 2024 and 2023 and its management's discussion and analysis for the year ended December 31, 2024 which are available on our website at www.largoinc.com or on the Company’s respective profiles at www.sedarplus.com and www.sec.gov.

Operational Turnaround and Cost Optimization Strategy

In recent months, the Company has implemented several critical initiatives aimed at addressing operational challenges, enhancing productivity, and strengthening cost controls. Following the appointment of Gordon Babcock and Luis Rendón as Co-Chief Operating Officers in February 2025, Largo has further increased its focus on operational execution and efficiencies. Under their leadership, the team is actively identifying additional areas for improvement and implementing targeted enhancements to drive increased performance. Successfully executing the Company's operational turnaround remains a top priority and will require the collective efforts of the entire team.

Key actions underway and priorities ahead include:

  • The Company has initiated a turnaround program with its mining contractor, including a general operating fleet overhaul and equipment refurbishments, to resolve reliability and availability issues that impacted mining throughput rates in late 2024 and early 2025
    • Improvements in drilling efficiency and ore production rates have already been observed as of early March 2025
  • Ongoing optimization of pit access and streamlining material handling processes to support more consistent throughput and operational stability
  • Working with geotechnical experts to optimize mining practices, including improved blasting techniques, fleet utilization, and pit infrastructure upgrades
  • Introducing mechanized and automated solutions in ore processing and tailings management, aimed at enhancing efficiency and reducing operational bottlenecks
  • Optimizing crushing, milling and kiln operations as well as downstream processing plant efficiencies through improved processes, maintenance schedules and operational adjustments designed to increase productivity
  • Strengthening cost management through rigorous monitoring and control processes to ensure operating expenses remain within targeted budget levels

The Company recognizes that while its ongoing operational turnaround is a critical step forward, additional measures are needed to fully address the Company’s broader financial headwinds. Market conditions, including a 21% decline in vanadium prices since December 31, 2023, and an elevated cost environment, have affected cash flows and financial forecasts. In response, the Company has taken decisive actions to strengthen its financial position, including ongoing cost reductions, operational efficiencies, and liquidity management. As a result of its cost reduction initiatives, the Company has recognized a 30% reduction in operating costs in Q4 2024 vs. Q4 2023. The Company is also actively working to improve its liquidity to support long-term goals, including exploring financing alternatives such as refinancing existing debt and securing additional capital through new debt facilities.

The Company will continue to monitor its progress and provide updates as needed. At this time, it will maintain its annual guidance ranges for 2025 and will reassess as operational improvements advance. Should any material changes to guidance be necessary, the Company will update the market accordingly.

About Largo

Largo is a globally recognized supplier of high-quality vanadium and ilmenite products, sourced from its world-class Maracás Menchen Mine in Brazil. As one of the world’s largest primary vanadium producers, Largo produces critical materials that empower global industries, including steel, aerospace, defense, chemical, and energy storage sectors. The Company is committed to operational excellence and sustainability, leveraging its vertical integration to ensure reliable supply and quality for its customers.

Largo is also strategically invested in the long-duration energy storage sector through its 50% ownership of Storion Energy, a joint venture with Stryten Energy focused on scalable domestic electrolyte production for utility-scale vanadium flow battery long-duration energy storage solutions in the U.S.

Largo’s common shares trade on the Nasdaq Stock Market and on the Toronto Stock Exchange under the symbol "LGO". For more information on the Company, please visit www.largoinc.com.

Cautionary Statement Regarding Forward-looking Information:

This press release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable Canadian and United States securities legislation. Forward‐looking information in this press release includes, but is not limited to, statements with respect to the timing and amount of estimated future production and sales; the future price of commodities; costs of future activities and operations, including, without limitation, the effect of inflation and exchange rates; the effect of unforeseen equipment maintenance or repairs on production; the ability to produce high purity V2O5 and V2O3 according to customer specifications; the extent of capital and operating expenditures; the ability of the Company to make improvements on its current short-term mine plan; and the impact of global delays and related price increases on the Company’s global supply chain and future sales of vanadium products.

The following are some of the assumptions upon which forward-looking information is based: that general business and economic conditions will not change in a material adverse manner; demand for, and stable or improving price of V2O5 and other vanadium products, ilmenite and titanium dioxide pigment; receipt of regulatory and governmental approvals, permits and renewals in a timely manner; that the Company will not experience any material accident, labour dispute or failure of plant or equipment or other material disruption in the Company’s operations at the Maracás Menchen Mine or relating to Largo Clean Energy, specially in respect of the installation and commissioning of the EGPE project; the availability of financing for operations and development; the availability of funding for future capital expenditures; the ability to replace current funding on terms satisfactory to the Company; the ability to mitigate the impact of heavy rainfall; the reliability of production, including, without limitation, access to massive ore, the Company’s ability to procure equipment, services and operating supplies in sufficient quantities and on a timely basis; that the estimates of the resources and reserves at the Maracás Menchen Mine are within reasonable bounds of accuracy (including with respect to size, grade and recovery and the operational and price assumptions on which such estimates are based); the accuracy of the Company’s mine plan at the Maracás Menchen Mine; that the Company’s current plans for ilmenite can be achieved; the Company’s ability to protect and develop its technology; the Company’s ability to maintain its IP; the competitiveness of the Company’s product in an evolving market; the Company’s ability to attract and retain skilled personnel and directors; the ability of management to execute strategic goals; that the Company will enter into agreements for the sales of vanadium, ilmenite and TiO2 products on favourable terms and for the sale of substantially all of its annual production capacity; and receipt of regulatory and governmental approvals, permits and renewals in a timely manner.

Forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”, although not all forward-looking statements include those words or phrases. In addition, any statements that refer to expectations, intentions, projections, guidance, potential or other characterizations of future events or circumstances contain forward-looking information. Forward-looking statements are not historical facts nor assurances of future performance but instead represent management's expectations, estimates and projections regarding future events or circumstances. Forward-looking statements are based on our opinions, estimates and assumptions that we considered appropriate and reasonable as of the date such information is stated, subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Largo to be materially different from those expressed or implied by such forward-looking statements, including but not limited to those risks described in the annual information form of Largo and in its public documents filed on www.sedarplus.ca and available on www.sec.gov from time to time. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Although management of Largo has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Largo does not undertake to update any forward-looking statements, except in accordance with applicable securities laws. Readers should also review the risks and uncertainties sections of Largo’s annual and interim MD&A which also apply.

Trademarks are owned by Largo Inc.

Non-GAAP3 Measures

The Company uses certain non-GAAP measures in this press release, which are described in the following section. Non-GAAP financial measures and non-GAAP ratios are not standardized financial measures under IFRS, the Company's GAAP, and might not be comparable to similar financial measures disclosed by other issuers. These measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Management believes that non-GAAP financial measures, when supplementing measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company.

Revenues Per Pound Sold

This press release refers to revenues per pound sold, V2O5 revenues per pound of V2O5 sold, V2O3 revenues per pound of V2O3 sold and FeV revenues per kg of FeV sold, which are non-GAAP financial measures that are used to provide investors with information about a key measure used by management to monitor performance of the Company.

These measures, along with cash operating costs, are considered to be key indicators of the Company’s ability to generate operating earnings and cash flow from its Maracás Menchen Mine and sales activities. These measures differ from measures determined in accordance with IFRS, and are not necessarily indicative of net earnings or cash flow from operating activities as determined under IFRS.

The following table provides a reconciliation of revenues per pound sold, V2O5 revenues per pound of V2O5 sold, V2O3 revenues per pound of V2O3 sold and FeV revenues per kg of FeV sold to revenues and the revenue information presented in note 19 as per the 2024 annual consolidated financial statements.

 

Three months ended

Year ended

 

December 31,

2024

December 31,

2023

December 31,

2024

December 31,

2023

Revenues - V2O5 producedi

$

10,271

$

25,182

$

57,446

$

115,534

V2O5 sold - produced (000s lb)

 

2,053

 

3,215

 

9,332

 

13,113

V2O5 revenues per pound of V2O5 sold - produced ($/lb)

$

5.00

$

7.83

$

6.16

$

8.81

 

 

 

 

 

Revenues - V2O5 purchasedi

$

$

1,497

$

988

$

9,028

V2O5 sold - purchased (000s lb)

 

 

265

 

176

 

1,279

V2O5 revenues per pound of V2O5 sold - purchased ($/lb)

$

$

5.65

$

5.61

$

7.06

 

 

 

 

 

Revenues - V2O5i

$

10,271

$

26,679

$

58,434

$

124,562

V2O5 sold (000s lb)

 

2,053

 

3,480

 

9,508

 

14,392

V2O5 revenues per pound of V2O5 sold ($/lb)

$

5.00

$

7.67

$

6.15

$

8.65

 

 

 

 

 

Revenues - V2O3 produced1

$

457

$

6,213

$

8,353

$

13,788

V2O3 sold - produced (000s lb)

 

59

 

596

 

898

 

1,215

V2O3 revenues per pound of V2O3 sold - produced ($/lb)

$

7.75

$

10.42

$

9.30

$

11.35

 

 

 

 

 

Revenues - V2O3 purchasedi

$

$

$

$

1,155

V2O3 sold - purchased (000s lb)

 

 

 

 

88

V2O3 revenues per pound of V2O3 sold - purchased ($/lb)

$

$

$

$

13.13

 

 

 

 

 

Revenues - V2O3i

$

457

$

6,213

$

8,353

$

14,943

V2O3 sold (000s lb)

 

59

 

596

 

898

 

1,303

V2O3 revenues per pound of V2O3 sold ($/lb)

$

7.75

$

10.42

$

9.30

$

11.47

 

 

 

 

 

Revenues - FeV producedi

$

12,212

$

11,278

$

46,890

$

57,686

FeV sold - produced (000s kg)

 

585

 

479

 

2,221

 

2,070

FeV revenues per kg of FeV sold - produced ($/kg)

$

20.88

$

23.54

$

21.11

$

27.87

 

 

 

 

 

Revenues - FeV purchased1

$

106

$

$

4,872

$

1,386

FeV sold - purchased (000s kg)

 

5

 

 

227

 

50

FeV revenues per kg of FeV sold - purchased ($/kg)

$

21.20

$

$

21.46

$

27.72

 

 

 

 

 

Revenues – FeVi

$

12,318

$

11,278

$

51,762

$

59,072

FeV sold (000s kg)

 

590

 

479

 

2,448

 

2,120

FeV revenues per kg of FeV sold ($/kg)

$

20.88

$

23.54

$

21.14

$

27.86

 

 

 

 

 

Revenues1

$

23,046

$

44,170

$

118,549

$

198,577

V2O5 equivalent sold (000s lb)

 

4,041

 

5,743

 

18,519

 

22,920

Revenues per pound sold ($/lb)

$

5.70

$

7.69

$

6.40

$

8.66

  1. Year ended as per note 23 of the Company’s 2024 annual consolidated financial statements.
    Three months ended calculated as the amount per note 23 less the corresponding amount disclosed for the nine-month period in note 19 of the Company’s unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2024 and 2023.

Cash Operating Costs Excluding Royalties and Adjusted Cash Operating Costs Excluding Royalties

This press release refers to cash operating costs excluding royalties per pound and adjusted cash operating costs excluding royalties per pound, which are non-GAAP ratios based on cash operating costs, cash operating costs excluding royalties and adjusted cash operating costs excluding royalties, which are non-GAAP financial measures, in order to provide investors with information about a key measure used by management to monitor performance. This information is used to assess how well the Maracás Menchen Mine is performing compared to its plan and prior periods, and to also to assess its overall effectiveness and efficiency.

Cash operating costs includes mine site operating costs such as mining costs, plant and maintenance costs, sustainability costs, mine and plant administration costs, royalties and sales, general and administrative costs (all for the Mine properties segment), but excludes depreciation and amortization, share-based payments, foreign exchange gains or losses, commissions, reclamation, capital expenditures and exploration and evaluation costs. Operating costs not attributable to the Mine properties segment are also excluded, including conversion costs, product acquisition costs, distribution costs and inventory write-downs.

Cash operating costs excluding royalties is calculated as cash operating costs less royalties. Adjusted cash operating costs excluding royalties is calculated as cash operating costs excluding royalties less write-downs of produced products.

Cash operating costs per pound, cash operating costs excluding royalties per pound and adjusted cash operating costs excluding royalties per pound are obtained by dividing cash operating costs, cash operating costs excluding royalties and adjusted cash operating costs excluding royalties, respectively, by the pounds of vanadium equivalent sold that were produced by the Maracás Menchen Mine.

Cash operating costs, cash operating costs excluding royalties, adjusted cash operating costs excluding royalties, cash operating costs per pound, cash operating costs excluding royalties per pound and adjusted cash operating costs excluding royalties per pound, along with revenues, are considered to be key indicators of the Company’s ability to generate operating earnings and cash flow from its Maracás Menchen Mine. These measures differ from measures determined in accordance with IFRS, and are not necessarily indicative of net earnings or cash flow from operating activities as determined under IFRS.

The following table provides a reconciliation of cash operating costs, cash operating costs excluding royalties, adjusted cash operating costs excluding royalties, cash operating costs per pound, cash operating costs excluding royalties per pound and adjusted cash operating costs excluding royalties per pound for the Maracás Menchen Mine to operating costs as per the 2024 annual consolidated financial statements.

 

Three months ended

Year ended

 

December 31,

2024

 

December 31,

2023

 

December 31,

2024

 

December 31,

2023

 

Operating costsi

$

30,194

 

$

43,218

 

$

145,818

 

$

174,758

 

Professional, consulting and management feesii

 

474

 

 

887

 

 

1,875

 

 

3,102

 

Other general and administrative expensesiii

 

(38

)

 

718

 

 

898

 

 

1,750

 

Less: ilmenite costs and write-downi

 

(2,317

)

 

 

 

(8,192

)

 

 

Less: iron ore costsi

 

(29

)

 

(84

)

 

(512

)

 

(722

)

Less: conversion costsi

 

(2,217

)

 

(1,768

)

 

(8,240

)

 

(7,319

)

Less: product acquisition costsi

 

(99

)

 

(1,974

)

 

(4,996

)

 

(15,354

)

Less: distribution costsi

 

(1,601

)

 

(2,366

)

 

(7,418

)

 

(8,540

)

Less: inventory write-downiv

 

23

 

 

(192

)

 

(238

)

 

(1,853

)

Less: depreciation and amortization expensei

 

(7,984

)

 

(6,592

)

 

(26,795

)

 

(26,048

)

Cash operating costs

$

16,406

 

$

31,847

 

$

92,200

 

$

119,774

 

Less: royaltiesi

 

(1,630

)

 

(2,243

)

 

(7,052

)

 

(9,162

)

Cash operating costs excluding royalties

$

14,776

 

$

29,604

 

$

85,148

 

$

110,612

 

Less: vanadium inventory write-downv

 

(2,517

)

 

(2,215

)

 

(13,897

)

 

(2,215

)

Adjusted cash operating costs excluding royalties

$

12,259

 

$

27,389

 

$

71,251

 

$

108,397

 

 

 

 

 

 

 

 

 

 

Produced V2O5 sold (000s lb)

 

4,024

 

 

5,437

 

 

17,603

 

 

20,871

 

Cash operating costs per pound ($/lb)

$

4.08

 

$

5.86

 

$

5.24

 

$

5.74

 

Cash operating costs excluding royalties per pound ($/lb)

$

3.67

 

$

5.44

 

$

4.84

 

$

5.30

 

Adjusted cash operating costs excluding royalties per pound ($/lb)

$

3.05

 

$

5.04

 

$

4.05

 

$

5.19

 

  1. Year ended as per note 24 of the Company’s 2024 annual consolidated financial statements.
    Three months ended calculated as the amount per note 24 less the corresponding amount disclosed for the nine-month period in note 20 of the Company’s unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2024 and 2023.
  2. Year ended as per the Mine properties segment in note 19 of the Company’s 2024 annual consolidated financial statements.
    Three months ended calculated as the amount for the Company’s Mine properties segment in note 19 of the Company’s 2024 annual consolidated financial statements less the corresponding amount disclosed for the Mine properties segment for the nine-month period in note 16 of the Company’s unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2024 and 2023.
  3. Year ended as per the Mine properties segment in note 19 less the decrease in legal provisions of $1,967 as noted in the "other general and administrative expenses" section on page 7 of the Company’s year-end 2024 management’s discussion and analysis.
    Three months ended calculated as the amount for the Company’s Mine properties segment in note 19 less the decrease in legal provisions of $1,967, less the corresponding amount disclosed for the Mine properties segment for the nine-month period in note 16 of the Company’s unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2024 and 2023.
  4. Year ended as per note 5 of the Company’s 2024 annual consolidated financial statements for warehouse materials.
    Three months ended calculated as the amount per above less the corresponding amount disclosed for the nine-month period in note 5 of the Company’s unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2024 and 2023.
  5. Year ended as per note 5 of the Company’s 2024 annual consolidated financial statements for vanadium finished products.
    Three months ended calculated as the amount per above less the corresponding amount disclosed for the nine-month period in note 5 of the Company’s unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2024 and 2023.

EBITDA and Adjusted EBITDA

This press release refers to earnings before interest, tax, depreciation and amortization, or "EBITDA", and adjusted EBITDA, which are non-GAAP financial measures, in order to provide investors with information about key measures used by management to monitor performance. EBITDA is used as an indicator of the Company's ability to generate liquidity by producing operating cash flow to fund working capital needs, service debt obligations, and fund capital expenditures.

Adjusted EBITDA removes the effect of inventory write-downs, impairment charges (including write-downs of vanadium assets), insurance proceeds received, movements in legal provisions, non-recurring employee settlements and other expense adjustments that are considered to be non-recurring for the Company. The Company believes that by excluding these amounts, which are not indicative of the performance of the core business and do not necessarily reflect the underlying operating results for the periods presented, it will assist analysts, investors and other stakeholders of the Company in better understanding the Company's ability to generate liquidity from its core business activities.

EBITDA and adjusted EBITDA are intended to provide additional information to analysts, investors and other stakeholders of the Company and do not have any standardized definition under IFRS. These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures exclude the impact of depreciation, costs of financing activities and taxes, and the effects of changes in operating working capital balances, and therefore are not necessarily indicative of operating profit or cash flow from operating activities as determined under IFRS. Other companies may calculate EBITDA and adjusted EBITDA differently.

The following table provides a reconciliation of EBITDA and adjusted EBITDA to net income (loss) as per the 2024 annual consolidated financial statements.

 

Three months ended

Year ended

 

December 31,

2024

 

December 31,

2023

 

December 31,

2024

 

December 31,

2023

Net loss

$

(11,664

)

$

(13,301

)

$

(49,239

)

$

(32,358

)

Foreign exchange loss

 

8,560

 

 

(823

)

 

12,517

 

 

183

 

Share-based payments

 

138

 

 

231

 

 

1,321

 

 

(362

)

Finance costs

 

2,360

 

 

4,096

 

 

9,460

 

 

9,630

 

Interest income

 

(92

)

 

(280

)

 

(1,523

)

 

(2,018

)

Income tax (recovery) expense

 

29

 

 

40

 

 

(2,813

)

 

88

 

Deferred income tax recovery

 

(7,651

)

 

(3,119

)

 

(19,193

)

 

(2,786

)

Depreciationi

 

8,205

 

 

7,393

 

 

28,675

 

 

29,250

 

EBITDA

$

(115

)

$

(5,763

)

$

(20,795

)

$

1,627

 

Inventory write-downii

 

5,627

 

 

2,407

 

 

18,475

 

 

4,068

 

Write-down of vanadium assets

 

(78

)

 

3,535

 

 

1,119

 

 

4,862

 

Write-down of mine properties, plant and equipmentiii

 

 

 

 

 

1,092

 

 

 

Movement in legal provisionsiv

 

(3,097

)

 

(85

)

 

(1,967

)

 

692

 

Adjusted EBITDA

$

2,337

 

$

793

 

$

(2,076

)

$

11,948

 

Less: Clean Energy Adjusted EBITDA

 

1,906

 

 

2,341

 

 

9,345

 

 

16,999

 

Less: LPV Adjusted EBITDA

 

223

 

 

369

 

 

707

 

 

1,045

 

Mining Operations Adjusted EBITDA

$

4,466

 

$

3,503

 

$

7,976

 

$

29,992

 

  1. Year ended as per the consolidated statements of cash flows of the Company’s 2024 annual consolidated financial statements.
    Three months ended calculated as the amount per the consolidated statements of cash flows less the corresponding amount disclosed for the nine-month period in the consolidated statements of cash flows of the Company’s unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2024 and 2023.
  2. Year ended as per note 5 of the Company’s 2024 annual consolidated financial statements.
    Three months ended calculated as the amount per note 5 of the Company’s 2024 annual consolidated financial statements less the corresponding amount disclosed for the nine-month period in note 5 of the Company’s unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2024 and 2023.
  3. Year ended as per note 6 of the Company’s 2024 annual consolidated financial statements.
    Three months ended calculated as the amount per note 6 of the Company’s 2024 annual consolidated financial statement less the corresponding amount disclosed for the nine-month period in note 6 of the Company’s unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2024 and 2023.
  4. As per the "non-recurring items" section on page 7 of the Company’s year-end 2024 management’s discussion and analysis.

 

Three months ended

Year ended

 

December 31,

2024

 

December 31,

2023

 

December 31,

2024

 

December 31,

2023

Clean Energy

 

 

 

 

Net lossi

$

(1,930

)

$

(2,943

)

$

(11,529

)

$

(19,429

)

Foreign exchange lossi

 

9

 

 

5

 

 

27

 

 

36

 

Finance costsi

 

7

 

 

12

 

 

39

 

 

56

 

Depreciationii

 

8

 

 

585

 

 

1,026

 

 

2,338

 

Clean Energy EBITDA

$

(1,906

)

$

(2,341

)

$

(10,437

)

$

(16,999

)

Write-down of mine properties, plant and equipmentiii

 

 

 

 

 

1,092

 

 

 

Clean Energy Adjusted EBITDA

$

(1,906

)

$

(2,341

)

$

(9,345

)

$

(16,999

)

  1. Year ended as per note 19 of the Company’s 2024 annual consolidated financial statements.
    Three months ended calculated as the amount per note 19 of the Company’s 2024 annual consolidated financial statements less the corresponding amount disclosed for the nine-month period in note 16 of the Company’s unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2024 and 2023.
  2. Included in depreciation amount shown in table above.
  3. Year ended as per note 6 of the Company’s 2024 annual consolidated financial statements.
    Three months ended calculated as the amount per note 6 of the Company’s 2024 annual consolidated financial statements less the corresponding amount disclosed for the nine-month period in note 6 of the Company’s unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2024 and 2023.

 

Three months ended

Year ended

 

December 31,

2024

December 31,

2023

December 31,

2024

December 31,

2023

LPV

 

 

 

 

Net loss1

$

(194

)

$

(3,930

)

$

(1,927

)

$

(5,969

)

Foreign exchange loss1

 

35

 

 

2

 

 

38

 

 

(50

)

Finance costs1

 

19

 

 

24

 

 

81

 

 

112

 

Interest income1

 

(5

)

 

 

 

(18

)

 

 

LPV EBITDA

$

(145

)

$

(3,904

)

$

(1,826

)

$

(5,907

)

Write-down of vanadium assets1

 

(78

)

 

3,535

 

 

1,119

 

 

4,862

 

LPV Adjusted EBITDA

$

(223

)

$

(369

)

$

(707

)

$

(1,045

)

  1. Year ended as per note 19.
  2. Three months ended calculated as the amount per note 19 less the corresponding amount disclosed for the nine-month period in note 16 of the Company’s unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2024 and 2023.

____________________
1 Cash operating costs excluding royalties, adjusted cash operating costs excluding royalties, revenues per pound per pound sold, adjusted EBITDA and mining operations adjusted EBITDA are reported on a non-GAAP basis. Refer to the “Non-GAAP Measures” section of this press release.

2 Effective grade represents the percentage of magnetic material mined multiplied by the percentage of V2O5 in the magnetic concentrate.

3 GAAP – Generally Accepted Accounting Principles.

 

For further information, please contact:



Investor Relations

Alex Guthrie

Director, Investor Relations

+1.416.861.9778

aguthrie@largoinc.com

Source: Largo Inc.

FAQ

What were Largo's (LGO) Q4 2024 financial results?

Largo reported Q4 2024 revenues of $24.3 million, down from $44.2 million in Q4 2023, with a net loss of $13.0 million and adjusted EBITDA of $2.3 million.

How much did Largo's (LGO) operating costs decrease in Q4 2024?

Operating costs decreased by 30% in Q4 2024 compared to Q4 2023, with adjusted cash operating costs excluding royalties dropping 39% to $3.05 per pound.

What was Largo's (LGO) V2O5 production volume in 2024?

Largo produced 9,264 tonnes of V2O5 in 2024, within its revised guidance range of 9,000-11,000 tonnes but lower than 9,681 tonnes in 2023.

How has the vanadium market affected Largo (LGO) in Q4 2024?

Vanadium prices faced downward pressure, with European V₂O₅ prices averaging $5.34 per pound in Q4 2024, representing a 17% decrease from Q4 2023.

What strategic measures is Largo (LGO) implementing to improve performance?

Largo appointed new Co-Chief Operating Officers, implemented cost reduction initiatives, and is pursuing refinancing options while focusing on operational turnaround and efficiency improvements.
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