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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

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Post by kha341on Apr 12, 2023 4:56pm
163 Views
Post# 35391578

Q1-23 Revenue estimation

Q1-23 Revenue estimation

Q1-23 Sales Guidance = 2,300T - 2,400T, Mid Point = 2,400T = ~5.3M lbs



Let’s assume the following:

Q1-23 Sales Volume = 2,400T = 5.3M lbs

Q1-23 avg Revenue per pound = US$10.0

Q1-23 Revenue = US$10.5 x 2,300,000 lbs = ~US$53.0M


So can we make a profit out of a revenue of US$53.0M? Imho, the answer = “Very Likely” unless the costs are unexpectedly out of control again.


Note:


Q4-22 CC

Heiko Ihle

Thanks, very much. In 2022, the company's net loss included about $15 million of nonrecurring stuff. Q4 was $6.3 million of that. We're 2 weeks away from the end of Q1. I mean, given the fairly large and consistent numbers. Are there any nonrecurring cash expenses that we should expect to see in Q1?

Ernest Cleave

Well, Heiko, at every reporting period, end of period, we would do NRV analysis on inventories, et cetera. But there's nothing that we were anticipating at this stage. So that's certainly something that we should plan for.


The analyst average EPS estimate  for Q1-23 = a loss of -C$0.08. Can we beat the analyst expectation this time around? Again, I say “Very Likely”.

It should be noted that these are the same analysts who also come to an average Price Target of C$13.90. 

So unless there is some kind of a problem associated with the negotiation of the LCE / Ansaldo Green Tech deal (MOU was extended to March 31 2023) I see no reason for the big drop in sp today.


Other coming catalysts:

May 2023: Q1-23 Results

May 2023: Completion of the Ilmenite plant

Jun 2023:  Commissioning of VRFB 1st Sale


My 2 cts

DYODD




 


My 2 cts

DYODD


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