Two unknowns Iron Ore Sales and Ilmenite production
Two unknowns: The sales price of the first IO. The source of ilmenite. The sales price for the Iron core is probably way below the benchmark price and is just being used to establish a business relationship with the client. Without removing the titanium content of the iron core reduces its value. My question is if the recipient can somehow extract titanium from Largo's IO, purify it, they can have both IO and titanium. They will likely be a long term buyer, and the IO sales will still be a long-term revenue stream for Largo. Because this is an unknown, the market simply has taken out all its possible benefits to Largo's SP. Same with the ilmenite project. No IRR imply 0 or negative value assigned to the project. The flip side of this 2 unknowns is that since their value are removed from the SP, as more information about them become available, it can only be positive to the SP.