RE:RE:RBCAndrew W(r)ong...Nov 12th report....don't think they are putting much effort into these reports as it looks like a copy and paste.
Investment summary Largo Inc. is a primary vanadium producer that is transitioning into an integrated vanadium redox flow battery producer, with sales of pigment by-products. The company’s primary vanadium asset is the Maracas Menchen project located in Bahia State, Brazil. Maracas Menchen began commercial production in 2014.
Maracas Menchen a top-tier vanadium asset: Largo's Maracas Menchen project, located in Brazil, is one of the lowest-cost vanadium assets globally due to high ore grades. The project produces a high-purity, premium-priced product. Nameplate capacity is currently 1,100 tonnes per month. We expect Largo to produce ~11kt V2O5 in 2024. Pigment by-products can add considerable value: The project can ramp up capacity to 425Kt/yr ilmenite and 120Kt/yr TiO2, but further expansions are currently on hold while the company explores potential funding and strategic options.
Largo Clean Energy (LCE) a long term value creator: We see long-term upside in LCE from growing global adoption of long-duration storage and what the company believes is a technically superior product. We think LCE ramp-up may take time as the company proves the technology in smaller installations before seeing larger contract wins. We assume Largo ramps up to 1,400MWh/yr of battery sales by 2030, with most of this ramp up happening post-2025. A potential JV with Ansaldo may be key to unlocking commercialization in the EMEA region.
Upcoming potential catalysts: 1) Signing LCE contracts; 2) JV formation with Ansaldo 3) Ramp up of ilmenite concentrate plant; 4) Improved vanadium production