Key Catalysts in 2023? https://capital10x.com/largo-reports-q4-2022-results-catalysts-ahead/
Let’s look at the following supposedly catalysts listed in the Capital10X article above (dated Mar 15 2023)
Key Catalysts in 2023
1) 10% expected production growth in 2023 with no rainfall or mining contractor issues: Production guidance has been revised downward. Reduction instead growth. This is a complete dud!
2) Illmenite plant coming on in Q2 2023 which could add up to $30M or 15% of revenue at full capacity, based on company’s technical report: Even if the Ilmenite plant was completed on schedule, full capacity would be reached only in 2024. Minimum sales now expected in Q4-23. Imo, the completion of the plant, even on schedule, will have minimal impact on the stock price.
3) Installation of VRFB for Enel Green Power Espana contract in Q1 and full commissioning in Q2. Will prove out the viability of VRFB batteries for large scale storage applications: Imo, the Q2 commissioning of VRFB will also have a minimal impact on the sp unless new sales are announced. Why wasn’t there any mention about the negotiation progress between LCE and Ansaldo Green Tech in the CC? The CC Presentation only talked about 2 catalysts namely the ilmenite plant and the VRFB installation. Weird!
4) Expecting cash costs to decline 2%-6% in 2023 ($4.85-$5.25) from the $5.15/lb experienced in 4Q22 due to flooding and mining contractor replacement: Another complete dud. The cash costs are now expected to go up to $5.65 in the new 2023 guidance.
But not to worry as the promotion of Paul Vollant to the new position of CCO will surely work magic on the sp. Will it not?