Largo Inc T.LGO

Alternate Symbol(s): LGO

Metals & Mining Industrial Metals & Minerals

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

Largo Inc

Bullboard Posts

Comment by EnglishTickleron Oct 30, 2018 10:43am

142 Views

Post# 28894129

RE:RE:RE:Revenue Projections

716m conservitively...
Realistically with V going up though we will likely be looking at breaking $1 billion in revenue in 2019!
With a current market cap of 2 billion... The SP should be 4x what it is now.

kha341 wrote:

clipper22200000 wrote:

The average price of V for October as reported each week by MetalBulletin was $24.56 per lb with just a couple of days remaining in the month.
Note: The latest V price reported by MB was 26.25.

Using a V price of $24 for the whole of 2019 we can make some projections, and not taking into account the considerable V shortage which is expected when the new Chinese rules come into effect on Nov 1st.
Does not include HP sales.

Q1 production 2,563mt Revenue 167m
Q2 production 2,563mt Revenue 167m
Q3 production 3,000mt Revenue 191m (production increase)
Q4 production 3,000mt Revenue 191m (production increase)

......................2019 Total Revenue 716m

Good work, clipper. The revenue projection looks fantastic.
So even CAD$716M (which is based on an assumption of V2O5 averaging at US$24/lb) would still be conservative if V2O5 can achieve an average price around US$30/lb (a real possibility) all the way through 2019.
On the other hand I do expect production costs to be higher in 2019 due to the increase in production volume. Btw the baseline economics of the NI 43-101 (filed in 2017) projected a cost increase of ~6% from 2018 to 2019. Furthermore if the BRL continues to strengthen then it will have a further negative effect on costs next year.