The problem with a weak US$ From the NR dated Nov 3 2021:
Technical Report Indicates $2.8 billion Pre-Tax NPV7% / $2.0 billion After-Tax NPV7% for Largo’s Mining Operations: Using weighted average price of $8.80/lb vanadium pentoxide (“V2O5”)(inclusive of high purity V2O5 premium), $3,685.0/tonne TiO2 pigment and $210.0/tonne ilmenite.
Well it was based on the assumption of US$1 = 5.10 BRL. The problem is that the US$ has been below 5.10 BRL since March 2022.
From the Technical report:
Unless indicated otherwise, all monetary units are expressed in Brazilian Reais (R$) or United States Dollars (US$). Although some cost figures have been taken from local sources in Brazil, each of these figures were converted to US$ for the compilation and presentation of the financial analysis.
An exchange rate of R$ 5.10 = 1US$ was applied throughout study
