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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
Post by Drhohoon Sep 07, 2019 4:07pm
87 Views
Post# 30105603

Cash

CashI am trying to get my brain around Largo’s profitability. It seems to me that the best way to look at the numbers is to use Mark Smith’s adding the Maracas mine V2O5 costs/lb of -$3.50 to the other total cash company costs of -$1.00/lb and work on a $$4.50/lb total company cost/lb of doing business. That being the baseline break even point results in any V2O5 price above $4.50 is company cash in the bank. @ $7.50/lb there is a $3./lb profit for every lb sold. Thus,  selling  -25,000,000 lbs/year gives $75,000,000 profit. The cost numbers stay the same as V2O5 price escalates. @ $10.00/lb, cash profit is $137,5000,000, @$15.00/lb, cash profit is $262,500,000 and ( far reaching ) @ $20.00/lb cash profit is $387,500,000. These are all annual numbers based on meeting the annual 12,000 metric tonnes/year forecast, which actually gives tonnage of 26,600,000 lbs or another 1,600,000 lbs/year more than the above calculations If in the next 8 months or so we get a good ride up from the recent low V2O5 prices in the  MB midpoint $6.00-7.00 range, there will be an additional remeasurement kicker due from Glencore. Please let me know if there is a simpler and/or better way to look at this. I welcome any and all input.
Bullboard Posts