Largo Inc T.LGO

RE:RE:RE:Largo 2021 EPS.: Actual vs Analyst Forecast

[kha341]

kha341 wrote:

You have to take anything EC says with a big grain of salt. He has been proven to be wrong many times before. As an illustration, remember that he said the following in the Q3-21 CC on Nov 11 2021:

Ernest Cleave

Lee, thank you for your questions again and we appreciate your support…. So I just did some quick numbers, yes, just off the face of our financials. We are probably in the region of about $50 million EBITDA give or take just based on some rough calculation I just did. If you look at Q4, I'd anticipate something between $20 million to $25 million of additional EBITDA. So it may be more, but we're going to end the year on about $75 million in EBITDA, Lee. 

So Cleave expected EBITDA to be "something between US$20M - 25M" or even more for Q4-21. He also expected "to end the year on about US$75M in EBITDA".

The actual Q4-21 EBITDA = ~US$6M and the actual full year EBITDA = ~US$55M.

How hard was it for a CFO to give a year-end prediction when he had only1.5 months to go before the end of the year? How come he was so wrong in his numbers? And now he is talking about the end of 2022? 2023? 2024?

How hard was it for a CFO to give a year-end prediction when he had only1.5 months to go before the end of the year? How come he was so wrong in his numbers?

And his compensation is more than C$1M per year?

The anti-transparency corporate culture at Largo allows the company's executives to say anything they want to in an earnings CC without any repercussions at all. That's why they don’t need to walk the talk. That’s why they are not being held accountable for their habit of overpromising and under-delivering.