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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 ceetongon Jun 01, 2023 1:10am
186 Views
Post# 35474185

Margins revisited

Margins revisited
The chart shows the V2O5 price (EU), Largo's operating cash costs and total cash costs.

User image

Total cash costs had been reported by Largo up until Dec. 2021. At that point in time they were ~$1 higher than operating cash costs. I extended the chart by sticking to the $1 difference although one can safely expect it to expand over time. In any event total costs (not shown in the chart) are higher than total cash costs as the latter exclude non-cash items. Also, keep in mind Largo's average selling price for its V2O5 is lower than the EU price.

What the chart clearly demonstrates: Costs went up at a much higher rate than the Vanadium price destroying Largo's margins.
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