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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

Post by kha341on Apr 18, 2023 8:13pm
238 Views
Post# 35401975

Better than expected

Better than expected


First good news: Sales are stronger than expected.

Actual Q1-23 Sales Volume
= 2,849T = 6.3M lbs = ~15% higher than the Sales Guidance.

Assuming Q1-23 avg Revenue per pound = US$10

Q1-23 Estimated Total Revenue = US$63M


The analyst average EPS estimate  for Q1-23 = a loss of -C$0.08. Unless the costs are unexpectedly out of control in a big way again, I predict that we'll realise a profit and will clearly beat the analyst EPS consensus by a good number.


Other good news / catalysts:


1) The construction of the ilmenite concentration plant progresses as planned to start a gradual production ramp-up in early Q2-23.

2) The installation of our first VRFB sales to Enel Green Power Espaa is on schedule with a majority of the site equipment installed.

3) LCE / Ansaldo Green Tech MOU has moved to the stage of final agreement negotiations. 


Good news all around.


I’m cautiously optimistic that Q1-23 results will set the stage for a strong come-back year ahead. Delivery is everything.
Btw, an announcement of a well-known name as our new CEO will accelerate the recovery, imho. 

My 2cts
DYODD

 


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