SP back to the C$8 range on TMX? Since commercial independence, in addition to the departure of 2 CEOs within no more than 3 years, the management team has not been able to deliver on their promises. The fact that the BoD has not been able to find a permanent CEO since the departure of Misk 3 months ago only adds to the investor mistrust of Largo’s leadership. The anti-transparency corporate culture makes the bad situation worse. Judging from past history of delays / indefinite postponements there is still a big “if” when it comes to management’s ability to deliver the new Ilmenite revenue stream on time. With regard to Energy Storage, no revenue stream of any substance is to be expected in the next 3-4 years.
Largo is still a one-pony-show totally dependent on the production / sales of Vanadium. Maracas is hailed as one of the lowest cost producers of V2O5 in the world and yet Largo could not even make a single penny in profit at an average revenue per pound of equivalent V2O5 sold above US$9.00 in Q1-23. In Q4-22 Largo had a net loss of US$15.6M when the average revenue per pound sold was US7.77. What happened in the last 2 Qs = Something never seen before with regard to breakeven point since the inception of the company.
Conclusion: Imho, it would be very difficult for the SP to get back into the C$8 range in 2023 considering the poor performance of management and the market mistrust of Largo’s leadership. But it’s just me.
DYODD