TSX:LGO - Post Discussion
Post by
kha341 on May 16, 2024 8:18am
This is insane
After all of the fanfare from management costs reduction promises, a negative Q1-24 EPS of ($0.20) was a surprise to me.
Largo loses US$13.0M out of a total revenue of US$42.2M. The company’s Net Loss = 31% of Revenue. Every $1 of sale costs Largo $1.31. An increasing negative Net Margin from (27%) to (31%) in 3 quarters in a row is insane.
In Q3-23 negative Net Margin = (27%)
In Q4-23 negative Net Margin = (30%)
In Q1-24 negative Net Margin = (31%)
If this trend continues Largo is heading toward insolvency hand over fist.
By the way,
Q1-24 cash operating costs excluding royalties = 6.12/lb = an increase of $0.68/lb or 13% over Q4-23. It is also 11% to 36% higher than the $4.50 to $5.50 range of the 2024 guidance.
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