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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 ceetongon Apr 02, 2024 10:26am
119 Views
Post# 35964978

All-in costs $9.42/lb V2O5

All-in costs $9.42/lb V2O5Let's have a quick overview of the current state of affairs. The company booked revenues of $44.17M in Q4 and ended with a loss of $13,03M. Accordingly, all costs combined must have amounted to $57,2M. If you devide this by 6,102,388 pounds of V2O5 produced, you get all-in costs of $9.42 per pound produced. The company itself predicts Q1 production roughly 30% lower than Q4's so we can safely expect costs per pound produced to be significantly higher again in Q1, probably north of $10.

What it means is Largo's costs are roughly twice as high as the current price of Vanadium. With every pound produced they incur a loss of ~$5. Let's face it, this is clearly unsustainable, this is bankruptcy territory!
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