Calmac9sh Buy into Bushveld? @ half a penny? A dead cat bounce from such a low bottom can get you 100% or 200% ROI in a blink of an eye. The trick is to realize your gain asap as the chance of losing it all is also real. Good luck!
Strange, considering the large institutional backing, not least from the Arias group? I agree.
Arias Resources Capital (ARC) is a private equity firm. Basically private equity firms focus on maximizing their ROI. In general their modus operandi is as follows:
1 Private equity funds invest directly in companies, primarily by purchasing or seeking to acquire controlling interest in publicly-traded companies through stock purchases (Alberto Arias is Chairman of Largo and ARC owns ~43% of the company).
2 Their focus is long term. Once they acquire or control interest in a company, they concentrate their effort into improving the company through management changes, streamlining operations or expansion.
3 Their eventual goal is to sell the company for a profit.
Arias & ARC supposedly have the financial resources and strategic expertise to carry out changes needed for streamlining operations and driving growth, a task that was achieved successfully at Largo during the Glencore years. Mark Smith, who led Largo into its golden era, was hired by Arias (MS left when he apparently disagreed with Arias battery vision in 2021).
Unfortunately Largo is now overstretched by Arias ambitious and costly energy vision. It’s mainly because of Arias’ 2-pillar strategy, based on his strong belief that we are witnessing the most exciting evolutions in the energy industry and thus a mega uptrend for critical battery minerals like vanadium, that 90% of Largo’s value has been destroyed since commercial independence.
To date, Largo’s two-pillar strategy has turned to be a failure amid a continuous decline in V prices, an unbearable increase in costs and LCE’s inability to sell more than a small battery since its inception 3 years ago (without even recording a single penny of revenue).
Have we heard Alberto Arias talking about Largo's current situation lately?
https://podcasters.spotify.com/pod/show/grizzle-pod/episodes/Management-1x1-Series-Alberto-Arias--Chairman-of-Largo--Vanadium---The-Battery-and-Energy-Efficiency-Metal-e1pa5j6
https://grizzle.com/the-bright-future-of-vanadium-a-conversation-with-largo-inc/