RE:Largo's Latest Corporate Presentation...Conference Call Highlights...
Largo has very significant quantities of titanium and iron ore in their tailings. Reasonably significant quantities of PGM's. They are looking at a minimal invest (less than $10 million) to extract value from these tailings. Could be selling titanium by the end of the year.
High purity sales are expected to reach between 2,000 & 3,000 tonnes in 2018. (820 total in Q1 and Q2) The goal is to double this amount again in 2019.
The focus is to eliminate debt. They're considering a share buyback program. Also considering a special one time dividend and/or a regular dividend.
Eliminating Glencore would increase earnings 5%-15%.
Mine expansion (debottlenecking) costing $15.5 million will be complete in 12 months. At current prices, the project will pay for itself in 6 weeks. This project will reduce costs by $.25 to $.50 per pound.
Evaluating building a new plant next to the existing one which would cost roughly $75 million and increase production by 5,000 tonnes annually. Debt will be repaid well before this 2nd expansion.
Spending $2 million to extend the mine life. Mark commented in the Jefferies presentation that this mine will be operating for many decades. The vanadium deposit is massive. Money was tight in the past so money wasn't spent on proving reserves to extend the mine life. They're doing that now and will continue to extend the mine life at the same pace it's depleted.
Lee Cooperman is a fire cracker. He dropped the "s" bomb several times. "I wish I bought a sh*t ton more stock at $1.40."
Good Luck To All!$!$