Bullboard - Stock Discussion Forum Largo Inc LGO

Primary Symbol: T.LGO

Metals & Mining Industrial Metals & Minerals

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... see more

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Largo Inc > Binding Sales

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Post by kha341 on Oct 21, 2024 5:52pm

Binding Sales

Tellechea: "The vanadium supply agreement allows Largo to unlock approximately $23.5 million from the supply of 2,100 tonnes of its standard grade V2O5, providing the Company with additional liquidity and flexibility in the current vanadium price environment"

2,100T = 4,629,708 lbs. So US$23.55M for 2,100T is equivalent to ~US$5.08/lb (I guess with no marketing/sales costs and no distribution costs). I also guess that US$5.08/lb is the floor price agreed upon between the parties with proper adjustments related to any market spot prices fluctuatation.

There were 9,467 tonnes of produced V2O5 equivalent sold in 2023, therefore 2,100 tonnes = ~22% of the annual produced V2O5 equivalent sold. The sales team (hopefully reduced sales team) should only focus on selling high margin / HP products from now on.

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