Q2 production below nameplate and year ago figure
Q2-2023 production of 2639t is 14% below Q2-2022 production and 20% below nameplate capacity. In the Q1 production report monthly figures were
345t for January,
843t for February,
914t for Marrch
which gave rise to the hope that Q2 production could get back to >3000t per quarter. As a reminder, nameplate capacity is 3300t per quarter. Largo again didn't fail to disappoint. Quarterly breakout:
676t in April,
945t in May,
1018t in June.
So once again we're led to believe better times were ahead but I don't think so. I bet somehow they will ruin Q3, too. BTW, not a dicky bird about the worker who died 6 days earlier. No information on production halt or what the investigation into the accident means.
What also concerns me is the fact that ore grade continues to trend lower. The two most recent quarters saw the two lowest effective grades in the company's history. Q2 effective grade is -27% lower than last year and Q1's grade was -36% lower vs. both the previous year figure and the reserve grade as well. What it means is increased costs since the company has to mine, crush and process proportionately more ore to yield the same amount of product.
The appointment of a total novice without any experience in the field is the utter admission that nobody of decent calibre was willing to take the job. This casts serious doubt on LCE's product viability and business prospects in general. At the very least I don't consider a young marketing guy without technical background, experience and a network in the industry, fit for the job at all.