Results
Largo Reports 2021 Net Income of $22.6 Million and Strong Financial Position; Focused on "Two-Pillar" Strategy as a Leading Vanadium Supplier Benefiting from Strong Vanadium Fundamentals with an Emerging Clean Energy Division
2022-03-16 17:15 ET - News Release
All dollar amounts expressed are in thousands of U.S. dollars unless otherwise indicated.
Full Year 2021 Highlights
- Revenues of $198.3 million, a 65% increase over 2020; Revenues per pound sold1 of $7.89, a 49% increase over 2020
- Net income of $22.6 million vs. net income of $6.8 million in 2020; Basic earnings per share of $0.35 vs. $0.12 per share in 2020
- Cash balance of $83.8 million exiting 2021 and a net working capital surplus of $118.3 million
- Annual V2O5 production 10,319 tonnes (22.7 million lbs)3 vs. 11,825 tonnes (26.0 million lbs)3 in 2020
- Annual operating costs of $133.0 million vs. $88.4 million in 2020, and cash operating costs excluding royalties per pound1 of V2O5 equivalent sold of $3.37 vs. $2.56 in 2020; 5% above 2021 annual guidance for cash operating costs excluding royalties per pound1
- Total V2O5 equivalent sales of 11,393 tonnes, an 11% increase over 2020
- Issued 3rd annual Sustainability Report covering the Company's new performance targets and disclosures and vanadium's role in the global green economy; The Company continued to improve its overall Environmental, Social and Governance ("ESG") strategy now reflected in improved ratings and scores
- Largo Clean Energy ("LCE") entered into its first battery sales contract with Enel Green Power Espana. LCE will deliver a 5-hour 6.1 MWh VCHARGE System and it received a notice to proceed on July 30, 2021
- Additional units of sustainably produced vanadium secured through offtake agreement with Gladieux Metals Recycling ("GMR"): In November 2021, the Company's subsidiary, Largo Resources USA Inc., signed a 10-year exclusive off-take agreement with GMR for the purchase of all standard and high purity grade vanadium products from GMR's recycling facility located in Freeport, Texas
- The Company completed the construction and ramp up of its vanadium trioxide ("V2O3") plant on budget in Q4 2021 and provided samples to prospective clients for product specification analysis. The Company began the process of shipping V2O3 to customers in Q1 2022
Q4 2021 Highlights
- Revenues of $50.3 million, 19% above Q4 2020; Revenues per pound soldi,ii of $7.88, a 54% increase over Q4 2020
- Net income of $0.8 million vs. net income of $6.9 million in Q4 2020; Basic earnings per share of $0.01 vs. $0.12 per share in Q4 2020
- Operating costs of $37.7 million vs. $31.6 million in Q4 2020, and cash operating costs excluding royalties per pound1 of V2O5 equivalent sold of $3.68 vs. $2.56 in Q4 2020