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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 Drhohoon Mar 20, 2022 3:28pm
127 Views
Post# 34529824

RE:A walk down memory lane: Crux interview of PM

RE:A walk down memory lane: Crux interview of PMKha, I listened to the 38 minute CRUX interview with Paulo Misk, finding the word captioning helpful. My takeaways from the July, 2020 interview and where we stand ~20 months later: most of financial improvements discussed by Misk were to come from new V2O3 high purity to generate new sales in the chemical and aerospace industries where V2O3 comprises 50% of Vanadium use, and high purity is much valued, ie, LGO HighPurity and HighPurity+  V2O3. a new market just now entered by LGO. The other major discussion was about TiO2, and how,  once in place, was going to equal LGO  Vanadium revenue numbers, effectively doubling current numbers. Once in place, because the current and future large inventory of ilmenite is already mined and milled, TiO2 is very inexpensively ready for sale. When asked about financing the two projects, whether equity, debt or internal financing, Misk stated that LGO was planning debt financing with such favorable interest rates available. No mention in the interview about plans of any sort to go ahead with what has since occurred with Largo Clean Energy and VRFB, which came in late 2020. And, nothing about the Largo Physical Vanadium project just recently announced. This brought me back to the recent CC exchange between Lee Cooperman and CFO Ernest Cleave, where Cleave quickly responded that capex spending for the V2O3 and TiO2 were taken care of by internal cash financing, no additional debt or equity required, still leaving ~$US 160 million in place for BOD option determination. And much larger amounts to come from 2023 forward. It seems to me that Cleave must be looking at the current 2022 combination of multiple favorable conditions: Vanadium selling for ~$US 12.40, significant V2O3 high purity revenue, significant TiO2 revenues resulting in the not too distant future, and, possibly, as yet not  publicly known accounting aspects of the LPV setup, if and when it ever becomes a reality for LCE and  future anticipated successful LRFB contracts. Despite all past missteps and miscommunications by Misk, Cleave, Vollant, etal, I anticipate  2022 revenue and earning numbers are going to be surprisingly positive.
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