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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 Mar 16, 2022 8:09pm
147 Views
Post# 34520416

RE:Q4-21 Earnings

RE:Q4-21 Earnings
kha341 wrote:





Quite disappointing. The huge 25% increase in costs was really unexpected.


Q3 Revenue = US$53.9M

Q4 Revenue = US$50.3M

A decrease of US$3.9M or down 7%


Q3 Expenses = US$40.4M

Q4 Expenses = US$50.7M

An increase of US$10.3M or up 25%


Q3 costs = 75% of Q3 Revenue

Q4 costs = 94% of Q4 Revenue


Had we maintained the same level of costs (75% of revenue) as in Q3 then our Q4 Income before Tax would = US$13.5M and our Q4 Income after Tax would = US$14.6M or ~US$0.23 per share or ~C$29 as compared to the analyst consensus of C$0.19.




Correction:
Should read

Q4 costs = 101% of Q4 Revenue


Q4-21 Results


Quite disappointing. The huge 25% increase in costs was really unexpected.


Q3 Revenue = US$53.9M

Q4 Revenue = US$50.3M

A decrease of US$3.9M or down 7%


Q3 Expenses = US$40.4M

Q4 Expenses = US$50.7M

An increase of US$10.3M or up 25%


Q3 costs = 75% of Q3 Revenue

Q4 costs = 101% of Q4 Revenue


Had we maintained the level of costs (75%) vs revenue our Q4 Income before Tax would = US$13.5M and our Q4 Income after Tax would = US$14.6M or ~US$0.23 per share or ~C$30 as compared to the analyst consensus of C$0.19. 


2021

Q1+Q2+Q3 Revenue  = US$148M

Q1+Q2+Q3 Costs = US$115.9


Q1+Q2+Q3 Costs = 77% of Revenue

Q4 Costs = 101% of Revenue


Q4 Costs = 101% of Revenue? No company can survive such high costs.
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