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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 Jul 21, 2021 10:58am
148 Views
Post# 33581174

RE:RE:My back-of-the-envelope estimation

RE:RE:My back-of-the-envelope estimation

Wally,

Q2 sales = 3,027T = 9% higher than Q1 sales (2,783T)


Q2 average V2O5 price = US$8.19 = 16% higher than Q1’s US$7.09 (Q1 revenue per lb of V2O5 equivalent which included high purity was only US$6.49 or 9% lower than Q1 average V2O5 price. So I expect the Q2 revenue per lb to be also lower than the Q2 average V2O5 price).


Q2 Net income as per my conservative estimation = US$7.6M - 8.5M (average = US$8M) = nearly 2X the Q1 Net income of US$4.4M.


We will also have revenue from the iron ore sales with a huge margin. Hopefully another US$1.5M - 2M to be added to the Net Income. Who knows?


Conclusion: Very good results for Q2. 


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