RE:One metric ruins it all
As I had pointed out 3 weeks ago, LGO's pricing performance is very poor indeed. The average selling price for their product mix ($8,10), including highly priced high purity Vanadium, was well below the quarterly average of standard V2O5 ($10,72).
Addressing a question from Jim Young, Paulo Misk said: "[the] majority of our sales, are down on long-term contracts, right? And long-term contracts are structured in a way where the quotation periods, so to the benchmark price that we use for a delivery is most of the time based on the prior months price, right? Average price. So what I mean here is that when the prices are increasing fast, we are trading behind right?"
I wish Jim had not allowed him to get off the hook with that spurious comment. The Dec. 2021 - Feb. 2022 average V2O5 price was ~$9,70, still a far cry from their sales price of $8,10, again, including higher-priced high purity Vanadium.
Obviously something is going seriously wrong here. The price lag does NOT AT ALL explain their poor performance.