Q2-24 Revenue Estimation
Q1-24 average V2O5 benchmark price = $6.44/lb
Q1-24 Price of V2O5 equivalent sales = $6.91/lb or 7% higher than the average V2O5 benchmark price
Q2-24 average V2O5 benchmark price = $5.93/lb
For the sake of argument let’s assume that the Q2-24 price of V2O5 equivalent sales = 10% higher than the average V2O5 benchmark price = $5.93 x 1.10 = $6.52/lb
Q2-24 V2O5 equivalent sales quantity = 1,841T = 4,058,705 lbs
thus
Q2-24 V2O5 equivalent Revenue = $6.52 x 4,058,705 lbs = ~US$26.5M
Q1-24 Ilmenite sales quantity = 513T
Q1-24 Ilmenite sales revenue = US$69,000 or $135/T
For the sake of argument let’s generously assume that the Q2-24 sale price of Ilmenite = US$270/T or double the sale price of Q1-24.
Q2-24 Ilmenite sales quantity = 12,261T
Thus
Q2-24 Ilmenite sales revenue = $270 x 12,261T = US$3.3M
Total Q2-24 Revenue = $26.5 + $3.3 = ~US$30M
Note: In Q1-24 Largo incurred a Net Loss before Tax of (US$18.3M) out of a total Revenue of US$42.2M
So brace yourself for a very “challenging” Q2-24.
Q3-24 is already underway and there is still no sign of a Vanadium recovery. How can Largo stay afloat in a sea of red ink?
DYODD