Cutting costs is IMPERATIVE In light of the fact that the mining operating costs jumped up to a staggering record high of 97% of revenue in Q3-23, the following Matthew Gordon interview of Mark Smith is worth listening to again. It was conducted on Sept 3 2019 just 5 days before his departure from Largo. At that time the benchmark Euro V2O5 price = ~US$8/lb. I do miss MS.
https://www.youtube.com/watch?v=TsWIAvM24Ww
Excerpt of Matthew Gordon’s summary: Largo Resources is coming to the end of their off-take contract with Glencore. This is a huge opportunity to improve their margins by targeting the high-purity market. Largo has understood the need to recruit the right people to be able to sell into these markets. High-purity equates to premiums and high-margins. This is good for the bottom line.
It is clear that Mark is focused on shaving costs off the bottom line and increasing the price achieved for its sales. In other words maximising profits. This commercial attitude to achieving margin means that Largo Resources is not talking the well worn distraction technique employed by other Vanadium companies of talking about VRFB. Vanadium Redox Flow batteries will be brought back to the table when it makes economic sense for the immediate term but it is not a focus. Is this the right strategy or should they be investing in the future? Mark responds.