Current Largo ROADMAP? 'descent-to-very good'... …and likely ONLY getting better
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The, mostly still noiseless, LARGO ARIAS/MISK Strategy has left me thinking that perhaps they’re just busily focused on executing, what we already knew of ‘it’!
Imagine for a second that you had only somewhat heard of Largo but were not invested (or somewhat) and did not yet quite fully understand its strategy or its potential… and you hear the following (just my 1cent) on Largo;
GENERAL
- Several Mine resources – (Largo website renders full justice on this front)
- Company is already one of the lowest cost producers of the highest purity Vanadium.
- Production capacity increased with optimizations (up to 25% and counting) – in the most active mine
DEBT FREE
- How many companies are truly debt free? Well this company is… 100% debt free - from a $300m debt
WHAT HAS CHANGED/IMPROVED - or – Here comes the ‘ MULTI-PRONGED STRATEGY’
----> from core Vanadium or close adjacent products – equating to – a new-&-enhanced/improved TRANSFORMATIVE reality.
- NOW, because of the disassociation with Glencore-only dealings other spaces/niche markets may be harvested; specifically, the aerospace and the chemical fields, both requiring many tonnes of high-grade vanadium. These industries are growing non-linearly faster than the standard vanadium industry (standard steel strengthening)
- In essence, wrt high purity, the aerospace (high quality metal strengthening) and chemical (sulfuric acid catalyst) and the nascent REDOX battery universe will highly like require Largo to double its current production – fortunately,THEY could !
NEW REVENUE STREAMS !
- So, the one market customer relationship – to – multi customer relationships STRATEGY can ‘easily’ bring in
- $100m additional revenues / yr. (perhaps more?) – likely starting and ramping up to such a target as of 2020
OTHER STUFF (CLOSE-ADJACENT DIVERSIFICATION)
- Titanium Largo plants – fully operational within a year or so (pilot plants already developed)… How much revenue might that bring in considering that there are customers right in Brazil that are waiting in – resource depletion mode – for this valuable product
- REDOX would appear to be a bit of a wild card– but this nascent market bears significant, yet to be exploited, potential as it needs pure-vanadium starting NOW.
MINE LIFE
Much more revenue / yr, BUT for how long – you ask??
- Most active, currently cash producing mine, out of Bahia State, Brazil (Menchen) has a 40 km stretch of magnetic structure mining potential.
- The open mined Campbell pit has an estimated 9 yr life. It provides the world’s highest purity V2O5 ( standard –in flake) and high-purity V2O5 (flake and powder needed for chemical industry).
- This mine accounts for 1.5km of the stated 40 km stretch. Hence, conceivably hundreds of years of mine life left (available potential !) to continue to bring home the ‘bacon’.
I’ve sometimes felt that we should keep Largo’s potential under radar until we can get the sp down to buy by the truckload for ourselves - which btw – some of us have (lol)
Please do your own research and, by all means, add or subtract on the same as you see appropriate/wish.
GL_Longs