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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

Comment by kha341on Dec 11, 2020 8:19am
220 Views
Post# 32086848

RE:Largo needs to

RE:Largo needs to
Clipper2 wrote: "Strike while the iron is hot".

https://markets.businessinsider.com/commodities/iron-ore-price


Since at least 2015 Largo has produced about 500 kilotons per annum of iron ore by-product. 


1 kiloton (kt) = 1,000 tons (t)

500 kilotons per annum = 500,000 tons per annum

Our iron ore stockpile = 500,000 tons per year x 6 years (from 2015 to 2020 inclusively) = 3,000,000 tons


The current market market price of the benchmark iron ore (62% Fe) is ~US$151/ton. Our product is considered to be relatively low grade with elevated titanium content subject to penalties. I don’t know how much a low grade iron ore like ours can be worth but even at an estimation of a crazy low price of 1/3 of the benchmark price our stockpile could be worth US$150M (or US$50/t x 3M tons) in total, plus an annual revenue stream of US$25M (or US$50/t x 500,000 tons). Granted that we want to use our own iron ore to make FeV but can we not at least try to sell a big chunk of the stockpile?  Has management done any serious work / test to determine the marketability / saleability of our iron-ore?
Imagine an NR announcing the partial sale of our iron ore stockpile. It could easily add another C$1 to the sp, imho.

 


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