Largo Inc Stock Price, News & Analysis

Largo (TSX: LGO) (NASDAQ: LGO) has announced a significant leadership transition, appointing Gordon Babcock and Luis Rendón as Co-Chief Operating Officers following the resignation of former COO Celio Pereira. This change is part of the company's strategy to enhance operational performance at the Maracás Menchen Mine.

Babcock brings over 40 years of mining experience, having served as COO at Sierra Metals and Jaguar Mining, with expertise in mine operations and engineering. Rendón, a metallurgical engineer with 40+ years of experience, has held senior roles at Sierra Metals, Compañía Minera Kolpa, and Pan American Silver, specializing in mineral processing and plant operations.

The Co-COO structure aims to improve operational oversight, with each executive managing distinct areas to enhance efficiency and cost control. This appointment aligns with Largo's broader turnaround strategy focused on operational improvements in Brazil.

Largo (TSX: LGO) (NASDAQ: LGO) reports Q4 2024 V2O5 production of 1,775 tonnes, down 36% from Q4 2023, primarily due to scheduled maintenance and lower ore grades. Annual production reached 9,264 tonnes in 2024, within guidance but down from 9,681 tonnes in 2023.

Q4 2024 sales increased 16% to 3,033 tonnes, while annual sales reached 9,600 tonnes. The company achieved significant milestones in 2024, including a 67% increase in mineral reserves and 64% in mineral resources, extending mine life to 31 years.

Market conditions showed weakness with Q4 2024 average benchmark V2O5 prices in Europe declining 21% year-over-year to $5.34/lb. For 2025, Largo projects production of 9,500-11,500 tonnes and sales of 7,500-9,500 tonnes, with Q1 2025 expected to see lower production due to heavy rainfall and slow post-maintenance ramp-up.

Largo (TSX: LGO) (NASDAQ: LGO) has finalized the formation of Storion Energy , a joint venture with Stryten Critical E-Storage, effective January 31, 2025. The partnership aims to establish a domestic supply chain for vanadium flow battery components and electrolyte manufacturing in the United States.

The joint venture combines Largo's high-quality vanadium supply, Largo Physical Vanadium Corp.'s electrolyte leasing model, and Stryten's U.S.-based manufacturing expertise. Both companies hold a 50% equity stake in Storion. As part of the transaction, Stryten has paid US$1 million to Largo and will contribute an additional US$6 million over time to fund operations.

The venture focuses on removing barriers to entry for battery manufacturers by providing domestically sourced, price-competitive components for the flow battery industry. This strategic collaboration aims to enhance grid stability and energy security while promoting the adoption of vanadium flow battery solutions.

Stryten Energy and Largo Inc. (LGO) have formed a joint venture called Storion Energy to establish domestic production of vanadium electrolyte for flow batteries. The venture aims to provide price-competitive components through a unique leasing model, leveraging Largo's position as the only operating vanadium mine in the Western Hemisphere.

The JV will focus on vanadium redox flow batteries (VRFB) for long-duration energy storage applications, supporting the DOE's goal of delivering reliable energy at $0.05/kWh by 2030. Through exclusive access to Largo Physical Vanadium Corp., Storion will offer a vanadium electrolyte leasing model to compete with lithium-ion battery costs.

VRFBs offer several advantages, including 20+ years lifespan with proper maintenance, infinite electrolyte recyclability, and scalability in power and capacity. The technology is particularly suited for utility-scale deployments and renewable energy storage applications.

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#.