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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

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Post by Drhohoon Aug 05, 2021 10:46am
161 Views
Post# 33654538

LCE selling vs leasing Vanadium

LCE selling vs leasing Vanadiumst_e, far be it for me to understand all the accounting ramifications of leasing and maintaining ownership of their Vanadium, but it seems to me that by maintaining ownership over battery lease lifetime with their current  stated value of $US12.39/lb is premium to the one time sale @ current $US 9.00/lb. I would expect that the 12.39 number would be subject to change depending on market conditions, including Vanadium price and competing energy storage alternatives such as Lithium or others. The real kicker to me would be at lease termination welcoming back the Vanadium into inventory. If the company moves to use their current ~27,500,000lbs/annum Vanadium production into battery leasing, i can see LGO over the years becoming the Fort Knox of Vanadium, at the then market valuation.
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