Post by
ceetong on Apr 02, 2024 10:26am
All-in costs $9.42/lb V2O5
Let's have a quick overview of the current state of affairs. The company booked revenues of $44.17M in Q4 and ended with a loss of $13,03M. Accordingly, all costs combined must have amounted to $57,2M. If you devide this by 6,102,388 pounds of V2O5 produced, you get all-in costs of $9.42 per pound produced. The company itself predicts Q1 production roughly 30% lower than Q4's so we can safely expect costs per pound produced to be significantly higher again in Q1, probably north of $10.
What it means is Largo's costs are roughly twice as high as the current price of Vanadium. With every pound produced they incur a loss of ~$5. Let's face it, this is clearly unsustainable, this is bankruptcy territory!
Comment by
ThaLuvDocta on Apr 02, 2024 10:56am
You've found the most one-dimensional way to describe the situation. Congratulations!