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Bullboard - Stock Discussion Forum 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... see more

TSX:LGO - Post Discussion

Largo Inc > Some rough numbers
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Post by Clipper2 on Feb 26, 2021 11:48am

Some rough numbers

During the Glencore rip off it was fairly straight forward to calculate the approx. expected Revenue for each quarter. Post-Glencore not so easy. We can however make a rough calculation.
 
Q4-2020 average price of vanadium was approx  USD 5.20/lb. (unofficial).
 
Q4-2020 production was 3,340mt which is 7.36m pounds.
7.36m pounds times 5.20 gives us Revenue US$ 38.29m 
(Not taking into account any premiums).
 
Each US$1.00 increase in the price of vanadium will increase Revenue by at least US$7.36m. (without premiums) 
 
To-days reported V price was approx. avg US$7.60. (thanks again LRP)
 
Q4 to Q1 Revenue = an increase of approx. US$ 17.66m. (again, not taking into account any premiums.
 
Note:
There was a reported 19 days shutdown in Jan. which will reduce Q1 production by approx. 705mt.
Comment by kha341 on Feb 26, 2021 12:15pm
In the post G era, production is not equal sales.
Comment by EnglishTickler on Feb 26, 2021 12:30pm
2021 projections... so if we use 3,300mt x 4 quarters = 13,200mt = 29,101,019lbs even though V is on a rapid upward trend, we could use current price $7.625... = $222m ... with a current market cap of 1b. ...4.5x should be an easy double...
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