Largo Inc T.LGO

RE:My take on the impact of the iron ore fiasco

[Clipper2]

kha341 wrote:

The iron ore fiasco is a lot more than just a failure by Management to monetize a tailing. 

1) Selling a new product without proper testwork to determine its saleability is an indication that the inexperienced sales team is not yet ready for venturing outside of the familiar Vanadium field. Can Largo be anything more than just a one-trick-pony? 

2) Selling a “lemon” product risks damaging the company’s credibility vis--vis the current / potential clientele. In a competitive field such as the metal markets it is difficult to gain customer trust without an untarnished reputation and without customer trust it is very hard to compete. 

3) Trying to hide the problem from existing / potential investors risks causing mistrust thus creating an atmosphere of skepticism / uncertainty. The market doesn’t like uncertainty. 

Consequently I would not be surprised if the iron ore fiasco was one of reasons causing the sp to drop deep into the bargain basement. Sure, the sp will eventually recover if V2O5 continues to be strong, but how fast and how long?

Unless some positive events / NR will come along my expectation of LGO reaching the C$30 range by the end of 2021 is fading away….even if we meet Q3 expectations.  

Just my 2-ct

DYODD

I wonder which side was responsible for the shipping costs.
Very rough estimate.

avg weight of 1 cu ft of iron-ore in lbs	130-180
avg. Shipping costs per container	$2000 to $3000
sold mt	14,000
lbs/mt	2,204
# of lbs sold	30,856,000
cu ft capacity of 40ft container	2,400
weight iron-ore per cu ft	155
total capacity of 40ft container in lbs	372,000
Number of containers required for 14,000mt	83
Shipping cost per container	$2,500
shipping costs for 80 containers	$207,500
shipping costs per mt	$14.82
plus many additional costs.

https://epgna.com/how-much-does-it-cost-to-ship-a-container-overseas/