RE:Largo Reports First Quarter 2022 Financial ResultAt least Q2 looks like it's off to a good start...
Jan/Feb/Mar:
2,232 tonnes sold.
April:
I am pleased to report that our commercial sales team continued to capitalize on current strong vanadium market fundamentals by surpassing
1,200 tonnes of V2O5 equivalent sold in April.
sold 54% in one month of what they did in the first 3 months; plus got TiO2 going.
SKiamforsure wrote: Largo Inc. has added a new press release to its website:
Largo Reports First Quarter 2022 Financial Results and Provides Adjusted 2022 Guidance; Announces Intention to Commence Normal Course Issuer Bid
All dollar amounts expressed are in thousands of U.S. dollars unless otherwise indicated.
Q1 2022 Highlights - Revenues of $42.7 million, a 7% increase over Q1 2021; Revenues per pound sold1 of $8.67, a 34% increase over Q1 2021 mainly due to stronger vanadium prices
- Cash provided before non-cash working capital items of $5.8 million, a 55% decrease over Q1 2021
- Net loss of $2.0 million vs. net income of $4.1 million in Q1 2021
- Total V2O5 equivalent sales of 2,232 tonnes vs. 2,783 tonnes in Q1 2021; Lower quarterly sales due to ongoing global logistical challenges and lower production in Q4 2021
- Cash balance of $78.4 million exiting Q1 2022; Net working capital2 surplus of $124.7 million following increase in in-transit vanadium inventory
- V2O5 production 2,442 tonnes (5.4 million lbs3) vs. 1,986 tonnes (4.4 million lbs3) in Q1 2021
- Operating costs of $29.0 million vs. $28.2 million in Q1 2021, and cash operating costs excluding royalties per pound1 of V2O5 equivalent sold of $3.97 vs. $2.87 in Q1 2021
- 2022 Guidance Update: The Company has increased its annual cash operating cost excluding royalties1 guidance from $3.20 – 3.40 per lb sold to $3.90 – 4.30 per lb sold mainly due to a rise in input raw material costs, a stronger Brazilian currency estimate and lower production in Q1 2022; V2O5 equivalent production guidance lowered from 12,250 – 12,750 tonnes to 11,600 – 12,400 tonnes; V2O5 equivalent sales guidance lowered from 12,250 – 12,750 tonnes to 11,000 – 12,000 tonnes4
- Construction of the Company’s ilmenite concentration plant commenced in April as part of its previously announced titanium dioxide (“TiO2”) pigment project. TiO2 content is expected to be sourced from the vanadium ore created from the Company’s ongoing operations, which is expected to contribute to the Company's “two-pillar” business strategy as a low-cost vanadium supplier with an emerging vanadium battery business
- Configuration of Largo Clean Energy's (“LCE”) vanadium redox flow battery (“VRFB”) product development and stack manufacturing center, in Massachusetts, U.S. to be complete in May 2022; LCE began producing stacks and purifying electrolyte in the new facility with prospective customer visits having occurred in May 2022
- Largo Physical Vanadium (“LPV”) continued to make progress (see press released dated April 19, 2022) and is seeking all applicable regulatory and stock exchange approvals to become a publicly listed physical vanadium holding company that will purchase and hold physical vanadium to provide potential investors with ownership and exposure to vanadium
- The Company announces that it intends to commence a normal course issuer bid (“NCIB”) to purchase for cancellation its common shares (the “Common Shares”)
- Q1 2022 results conference call: Thursday, May 12th at 10:00 a.m. ET
Vanadium Market Update5 - Demand in all of the Company’s key markets remained strong in Q1 2022, which was reflected in strong price increases over the course of the period
- The average benchmark price per pound of V2O5 in Europe was $11.50 as of May 6, 2022, up approximately 31% since the start of 2022
- The average benchmark price per pound of V2O5 in Europe was $10.72 in Q1 2022, a 29% increase from the average of $8.30 seen in Q1 2021; The average benchmark price per kg of ferrovanadium (“FeV”) in Europe was $46.17 in Q1 2022, a 50% increase from the average of $30.87 seen in Q1 2021