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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 st_estebanon Aug 06, 2021 8:50am
88 Views
Post# 33662612

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Winning From Higher Vanadium Prices

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Winning From Higher Vanadium Prices
kha341 wrote:
With all due respect I don't agree with the following message in your original post.  Do you stand behind it or not?
"When V prices are low leasing looks very good for both Largo and the utilities companies (might look better from a Largo's point of view)....When V prices are high, Largo might be better off selling into the market to make a profit right away"



Yes.

There are two sides to leasing, Largo's and the leasing company.

When prices are high
 
Largo's side:
- is able to make a large profit by selling directly to the market
- is willing to lease V electrolite as long as the price(see the 3 components that go into price in previous post) it will receive is comparable to the price is able to receive directly fromthe market
- continues to generate income from V that has been leased in previous years
- is able to generate new leases only if there are companies willing to lease at current lease price/conditions
- could be willing to lease at a lower price to retain/gain customers - economically does not make sense

Leasing company side:
- also looking for an energy solution that makes economic sense
- is willing to lease V as long as the leasing price makes sense otherwise it won'tsign a lease (it won't either buy V in the market)

Let me know if you don't agree with any of the above statements and why

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