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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 Clipper2on May 17, 2020 8:04am
71 Views
Post# 31039316

RE:RE:RE:RE:RE:RE:Trade Payables

RE:RE:RE:RE:RE:RE:Trade Payables
kha341 wrote:
Clipper2 wrote:

2018 the full year the Revenue adjustment received (RAR) was 66.05m

2019.......Revenue.......Revenue adjusted payable (RAP)........Revenue after RAP
Q1...........101.04m.................57.08m ......................................44.31m
Q2............75.79....................46.32m........................................29.46m
Q3............52.53....................20.41...........................................32.12m
Q4............47.60....................13.45...........................................32.12m
.................................total.....137.26m (RAP)

Bl**dy ridiculous.
Some explantion needed.
 


In my opinion the amount of remeasurement adjustments in favour of G in 2019 was worse than the amount of RAP reported in the same year.


"The Company’s only financial instruments susceptible to price risk is its trade receivables and trade payables,which can vary with the market price of vanadium"



Q1-19 Sales from contracts with G = C$101.4M

Q1-19 RAP (in favour of Glencore  = (C$ 57.1)M

Q1-19 Total Revenues                    = C$44.3M


Q4-18 Trade Receivables (G owed to Lago) closing balance  = C$55M

Q1-19 Trade Receivables (G owed to Lago) opening balance = C$55M

Q1-19  Trade Receivables reductions due to remeasurement = (C$55M)

Q1-19 Trade Receivable (G owed to Lago) closing balance  = Nil


Therefore the total remeasurement adjustments processed in favour of Glencore in Q1-19 comprised 2 components which are a reduction in revenues ( or RAP C$57.1M) and a reduction in AR (C$55M) for a total amount of C$112.1M


Q1-19 RAP (in favour of Glencore  = (C$57.1M)

Q1-19 Trade Receivables reductions due to remeasurement = (C$55M)

Q1-19 Total remeasurement adjustment = (C$57.1M) + (C$55M) = (C$112.1M)

So I reckon that the total amount of remeasurement adjustments in favour of G for the whole year of 2019 should be C$192.26M as compared to C$137.26 RAP.

 





Thanks kha.
I believe Largo should hold off with the settlement. Without the remeasurement Largo would have had a fantastic 2019. Each and every one of the BoD needs to grow a pair and put a good lawyer on the job.
I think Largo investors deserve an explantion and Cleaves shoud stop hiding behind the NDA. I'm sure they are legal but investors need some kind of explanation as to how Glencore got away with this.

Bullboard Posts