Largo Inc T.LGO

Alternate Symbol(s): LGO

Metals & Mining Industrial Metals & Minerals

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

Largo Inc > Q2 Financials

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Comment by kha341on Aug 08, 2021 11:39am

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Post# 33669452

RE:RE:RE:RE:RE:RE:RE:RE:RE:Q2 Financials

kha341 wrote:

I have another look at my guesstimation and reckon that if Revenue = US$53.3M (a big IF) then there is a possibility for a Net Profit Margin of 20%.

Q2-21 Back-of-the-envelope

Estimated Revenue = 53,387,000

Estimated Total Costs = 53,387,000 x 80% = ~42,709,000

Estimated Net Income = 53,387,000 - 42,709,000 = 53,387,000 x 20% = US$10.7M

or around $13M without FX Loss.

Notice that in the above guesstimation Q2-21 Net Income = US$10.7M which is more than double the Q1 Net Income of US$4.4M while Q2 Revenue (53.3M) only increases by 34% over Q1’s (39.8M).

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