Largo Inc T.LGO

Largo Webinar Tomorrow Tuesday June 7th 11AMET

[BloorStreetCap]

 We will be hosting a webinar with Roberto Arias Co-Chair of Largo Inc $LGO. on Tuesday June 7th at 11AM ET. Details and Registration can be found here: https://bit.ly/3x8QujM $vanadium $metal $steel $alloy $lithium $battery metals $EV. Please let me know if you have any questions.

[ceetong]

Why is Largo's avg. selling price for their high purity V2O5 product mix significantly below the avg. market price for standard V2O5? The company's usual answer is: Sales prices lag market prices by a month. However, this does not explain the massive difference: Jan - Mar V2O5 price was $10.72 (standard quality). Dec - Feb price was $9.70. Nov - Jan price was $8.90. Largo*s Q1 selling

[ceetong]

The V2O3 plant was commissioned in Q4-2021. No production was mentioned in Q1. What's the nameplate capacity of the V2O3 plant and how much does it currently produce? How long is it going to take to produce at full speed?

[Clipper2]

Hi ceetong. Q1 sold 2232mt avg 8.67   As we all know Largo uses FastMarkets Vanadium pricing, and up until mid 2021 FastMarkets would normally release the latest V2O5 price  each Friday. Unfortunately those weekly numbers are very difficult to find nowadays.   In the past I always kept a record of the FastMarkets and AsianMetals pricing but I now only record the

[ceetong]

Clipper, the $8.67 figure you cite is a mix of Largo's V2O5 ($8.11) and FeV ($30.49) sales price. Refer MDA, page 4.

[Clipper2]

Thanks ceetong.

[ceetong]

During the conferen call Paulo Misk said: "majority of our sales, are down on long-term contracts, right? And long-term contracts are structured in a way where the quotation periods, so to the benchmark price that we use for a delivery is most of the time based on the prior months price" The rest that is being sold into the spot market must have fetched higher prices since during Jan

[ceetong]

Did Paulo possibly mean the previous 3-month average (Oct-Dec)? That would have been $8,30, much closer to the $8.11 achieved. Well, we'll soon know. If so, Largo's avg. V2O5 selling price during Q1 should come in at approx. $10.70/lb.

[kha341]

Clipper, Largo was using Fastmarket spot price of standard V2O5 Flake 98% min in warehouse Rotterdam in the past because it was required by the Glencore offtake agreement. Back then Glencore had to buy 100% of Maracas V production at a price = Fastmarket spot price of standard V2O5 Flake 98% min in warehouse Rotterdam minus a discount.  Since commercial independence our products have been

[Clipper2]

Good post kha. I cringe every time I hear the word Glencore. BTW Did you see this: https://www.forbes.com/sites/christopherhelman/2022/05/26/bribery-scandal-to-cost-glencore-11b---billionaire-execs-avoid-blame-for-now/?sh=55aa17d9625a And to think that we had to deal with that outfit for 5 years. Sad, sad days. I 

[kha341]

“Count Your Fingers After Shaking Hands with Glencore. Glencore is the 800-lb gorilla in most rooms it is in and that is no different for the Vanadium space” Christopher Ecclestone, Principal and mining strategist at Hallgarten & Company Glencore knew that an offtake agreement was a prerequisite for Largo to get the needed debt financing at the time. So they took advantage of the