Rev was better than expected. Costs continued to run amok Q2-23 Sales = 2,557 T = 5,637,214 lbs
Q2-23 Revenue = US$53M or US$9.42/lb (= higher than the Q average benchmark of US$8.46/lb). Q2-23 Revenue = better than expected
However Costs continued to run amok in Q2-23 as reflected in the following data regarding to Operating Costs alone (never mind other costs such as SG&A):
Q2-23 Operating costs = US$43M or 81% of Revenue (as compared to 80%, 74% and 67% in Q1-23, FY-22 and FY-21 respectively). It is important to note that in the last 4 Qs (since Q3-22) Largo’s Operating Costs have constantly varied between 80% - 93% of revenue. There is no way for Largo to make a profit with such high operating costs.
Net Loss before Tax = (US$4.6M)
Net Loss after Tax = (US$5.96M) or (0.09)/share which is comparable to analyst consensus of (0.095)/share