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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

Post by kha341on Nov 04, 2023 8:19am
233 Views
Post# 35717226

TiO2 Project

TiO2 Project

The Q4-22 MD&A said: “Management has made the decision to postpone the Company's existing plans to further develop its titanium dioxide ("TiO2") pigment plant until additional funds are made available, either internally or externally. At this time, the Company is exploring alternative debt financing or strategic association options with advisors and will provide an update as things progress” 

 

Phases 1&2 of the TiO2 project were planned to reach a production capacity of 60kt in 2025.  The associated CAPEX requirements were ~US$156M. I have no idea what "strategic association options" mean but the required funds would normally be raised via debt or equity financing or both. With the sp currently in the dumps, the equity financing option would not be a good choice as it would cause excessive dilution. So the only option left is debt financing. 

IMHO, the TiO2 project will only start to regain life in 2025 at the earliest.  


DYODD




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