Bullboard - Stock Discussion Forum Largo Inc T.LGO

Alternate Symbol(s): LGO

Metals & Mining Industrial Metals & Minerals

Largo Inc. is a Canada-based producer and supplier of vanadium products. The Company’s segments include sales & trading, mine properties, corporate, exploration and evaluation properties (E&E properties), Largo Clean Energy and Largo Physical Vanadium. Its VPURE and VPURE+ products, which are sourced from one of the vanadium deposits at the Company's Maracas Menchen Mine in Brazil. The Company... see more

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Largo Inc > earnings

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Post by SKiamforsure on Nov 12, 2020 5:20pm

earnings

Q3 2020 Highlights

Solid financial position: Cash at September 30, 2020 totaled $74.9 million
Revenues of $27.5 million, an increase of 14% over Q3 2019
Revenues per pound sold⁷ of $5.37, a 34% increase over Q3 2019
Net income of $2.6 million vs. a net loss of $6.0 million in Q3 2019
Total sales exceeded production levels in August and September 2020 for the first time since commercial independence, highlighting successful implementation of the Company's strategy
Cash provided (used) before working capital items of $4.8 million vs. cash used in Q3 2019 of $3.8 million
Record production of 3,092 tonnes (6.8 million pounds ¹ ) of V₂O₅, an increase of 5.0% over Q3 2019
Record global V₂O₅ recovery rate ² of 84.2% in Q3 2020, an increase of 8.0% over Q3 2019
Continued low-cost operations: Cash operating costs excluding royalties ³ of $3.14 per lb of V₂O₅, compared with $3.02 per lb in Q3 2019; Total cash costs³ were $3.69 per lb in Q3 2020

Other Significant Highlights

2020 cash cost guidance reduced: Cash operating cost excluding royalties³ guidance lowered to $2.60 – $2.80 / lb V₂O₅ from $3.05 – $3.25 / lb; Total cash cost³ guidance lowered to $3.20 to $3.40 / lb V₂O₅ from 3.45 – $3.65/ lb
Postponing cost-efficient nameplate capacity increase to Q1 2021: Planned kiln upgrades and cooler maintenance that will increase Largo's production capacity by 10% with a CAPEX of only $1.3 million are postponed to Q1 2021 due to COVID-19 restrictions
Focus on safe business continuity: On track to meet lower end of 2020 production guidance with strong production results expected in Q4 2020; 2020 sales guidance maintained
2020 drilling program update: Drilling was ramped up in Q3 2020 with 14,007 metres (80 holes) completed