Largo Inc T.LGO

Alternate Symbol(s): LGO

Metals & Mining Industrial Metals & Minerals

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

Largo Inc > Extremely Undervalued

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Comment by EnglishTickleron Oct 27, 2023 1:00pm

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Post# 35704384

RE:Extremely Undervalued

Yet, still no insiders buying :(

kha341 wrote:

Imho, Largo is currently being traded based on bearish sentiment without seriously taking into consideration the company’s fundamentals. The situation is made worse by the out-of-the-ordinary high level of short positions. As such the stock is extremely undervalued. The Maracas Menchen mine alone has good fundamentals especially with the additional Ilmenite revenue stream starting in 2024. Vanadium prices are and will remain the main driver for Largo’s value and Vanadium is expected to have a healthy future.

EV / EBITDA multiple is one method in the tools box of financial analysts to estimate the target prices of a company. Another popular technique used to estimate the value of a company is the Discounted Cash Flow (DCF) method which is based on expected future cash flows (usually during a 10-15 years period). In other words the DCF method aims to determine today’s present value of a company based on projections of how much money the company will generate in the next 10-15 years. According to Warren Buffet, “the intrinsic value can be defined simply: It is the discounted value of the cash that can be taken out of a business during its remaining life”.

Unless Vanadium ceases to be a critical mineral, there is no way that a DCF analysis would result in our mining operations being valued at below Largo’s book value (~C$5.70), thus making LGO extremely undervalued at the current prices.

My 2 cts

DYODD