Largo’s FY2023 Financial Statements: "Management estimated vanadium prices based on current pricing data and anticipated market supply and demand dynamics, and used an estimated vanadium price of $6.68 per pound for 2024, increasing to $8.50 per pound for 2027 onwards.
RBC review report: Vanadium prices remained under pressure through early-2024, primarily due to a challenging macro environment and weak steel-related demand. European V2O5 prices at ~$5.50/lb in Q1/24 are down from ~$8/lb average through 2023, and we expect prices to remain in the $5.50-6/lb range through 2024. We have lowered our long-term V2O5 price assumption to $8/lb, from $9.50/lb, which is more in-line with the historical average and taking into account tempered views on the impact from vanadium redox flow battery adoption.
Can we really say that Management’s V prices estimation is conservative when compared to RBC’s analysis?