SP going 2-10X over the next 2 years?
In a sector where grade is king Largo is the largest and highest-grade primary V producer that controls 7.4% (= 41% x 18%) of the global supply. Largo is already a dominant player in the global V space. Now with the creation of Largo Clean Energy, the company has positioned itself to become a major player in the VRFB sector in the long term.
Even prior to the announcement of the VRFB vertical integration move (Dec 08 2020) Largo at its full potential (and with strong V recovery) could be expected to be worth up to C$4-$5 by the end of 2021. So 10x in 2 years is not far-fetched at all., imho. The only we need is a strong global economic recovery post covid.
kha341 wrote: (12/4/2020 7:40:07 PM)
In the Vanadium space grade is king.
In my humble opinion , at full potential and with a strong V recovery Largo should be expected to be valued at C$5 per share at the minimum.
It would not be a surprise to me to see LGO in the range of C$4 - $5 by the end of 2021.
A quick SWOT analysis:
Strengths: Highest grade V products and lowest cost producer
Weaknesses: Weak leadership and lack of a clear strategic vision
Opportunities: Green revolution full force ahead. VRFB taking off. Additional revenue streams. Global economic recovery post Covid.
Threats: Successful business models from existing competitors. New competition causing oversupply/price war. Substitutes. Covid delaying global economic recovery.
But again I have been proven to be wrong many times already.
DYODD.