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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

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Post by ceetongon May 01, 2024 6:39pm
129 Views
Post# 36018403

Q1 Debacle Part I

Q1 Debacle Part Iwas released on 04/30. Record low ore grade, record low concentrate production, record low concentrate grade, record low Vanadium recovery. Check out the trend:

Ore grade
Q1-2022: 1,27%
Q1-2023: 0,81%
Q1-2024: 0,53%

They'd have to treat 2,4x the amount of material to make up for the lower grade. Considering the fact that lower grades mean lower recoveries, they would have to treat closer to 3x as much material to get the same Vanadium output. Guess what this means for costs! Since the plant can't be fed that much material anyway, Largo will NEVER be able to produce 3300tpa as the official nameplate figure pretends. Never!

As I had said before, the Ilmenite plant does not perform and significant, expensive upgrades are needed to fix this. Since Largo simply can't afford to spend that kind of money, expect the Ilmenite plant to continue to underperform severely. Key takeaway: The Ilmenite plant is just the latest addition to the list of Largo's money losing endeavours.

The financial repercussions will come to light in "Q1 Debacle Part II" later this month.
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