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Largo Inc T.LGO

Alternate Symbol(s):  LGO

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 is also focused on the advancement of renewable energy storage solutions through Largo Clean Energy and its vanadium redox flow battery technology (VRFB). The Company is also engaged in the process of implementing a titanium dioxide pigment plant using feedstock sourced from its existing operations, in addition to advancing its United States-based clean energy division with its VCHARGE vanadium batteries. VPURE+ Flakes are used in the production of master alloys, where it provides high strength-to-weight ratios for the titanium alloy and aerospace industries.


TSX:LGO - Post by User

Bullboard Posts
Comment by Vercrusseon Aug 03, 2017 12:29pm
89 Views
Post# 26543453

RE:RE:RE:RE:RE:RE:remind us

RE:RE:RE:RE:RE:RE:remind usI don't believe the 840 Ton.  On their website is still the 828 Tonnes from December.  I assume that any higher production would be mentioned.  

Regarding the production cost: here is a table from investorintel.
 User image

There is a raise from 30 cent vs Q4 2016.  If you look at Q3 2016 vs Q4, Q4 is 1 cent higher but they produced 120 more.  It seems there is no correlation between production and operating cost.  Basicly this is normal as you have some fixed costs.  But a raise of 30cent is huge.
Bear in mind this sentence I read somewhere “Smith points out that every $0.25 reduction in operating costs translates into a $5-million gain to the bottom line. Conversely, this also goes for every $0.25/lb in price improvement.”
So if 3,90 is the new level for operating costs we can only be glad with a higher sale price.

I would guess that all costs related to the installation of the new kiln are considered as CAPEX and not as OPEX.  Besides this, a kiln which is not working doesn't cost so there should be a lower operating cost during these days.  They said that they used feedstock for the rest of the process, so that can't be the big reason either.  
It can of course be that the other improvements are considered as OPEX, but then they should mention it.  
But all this is why I said there is no decent explanation.

Also, why the new kiln.  The installed one was not even 5 years old.

I'm sorry about my remarks, sounds all quite negative.

But find the communication rather poor and the loss/operating cost in Q1 is laying on my stomac. For your info: I accumulated havely last 3 weeks so I hope for good Q2.


Bullboard Posts