Largo Inc T.LGO

illmenite

[JollyRoger7]

Looks like a good, - and timely, call.
It would explain why the TiO2 project was deferred into Q2 and also addresses, I guess, Mr Cooperman's concerns on CAPEX at the last CC.
It would be really helpful if we get to find out the Plant capacity they used in the feasibility calcs. Maybe this afternoon?
Clearly we will lose some potential revenue by not producing TiO2 directly but if that potential loss were great maybe an intermediary could be found to refine the Illmenite. (Technical / commercial  input, please). 

JR7

[kha341]

Where is the Preliminary Economic Assessment (PEA) report that includes an economic analysis of the potential viability of this project?

[Clipper2]

kha wrote. Where is the Preliminary Economic Assessment (PEA) report that includes an economic analysis of the potential viability of this project? I agree. While I believe it is probably the right time to start unloading the iron-ore, spot price $168. As kha suggested lots of value even at half the price.   IMHO. vertical integration is definately the way to go, and

[SKiamforsure]

Thanks Clipper :)  Nice call on the earnings :)  As Mark said , Largo has hundreds of years for the Life of the mine, They are going as planned on the diversification of the product line, As Lee Cooperman said It will be a long haul , but at the end  My grandkids will love that i bought some Enjoy and have a great day  Sk 

[kha341]

Clipper, This ilmenite project could be very viable ecomically. I don't think our BoD members are much less qualified than those at Bushveld.  I just want to learn how viable this project is. I'm compaining about Largo not being transparent.  No BoD should approve a project without a study of its economic viability, should it not? So where is the Preliminary Economic Assessment

[JollyRoger7]

While Iagree wholeheartedly with Clipper's long held views on vertical intergration I would also suggest that we" make hay" where we conveniently can. It sems to me that $23m is more "convenient" than >$100m  when the raw material is essentially free and (from what Mark Smith led us to believe in a CC in  2018 or 2019)  has a payback of about 6 weeks

[jcw604]

What is the IRR? Why illmenite?

[island9999]

  Hard to find current Ilmenite pricing unless you subscribe to a metals publication,.but the historical range of the last year or two is shown below,pick a number then multiply by 150,000,hopefully future demand will only send these numbers higher. https://www.consensuseconomics.com/publications/energy-and-metals-consensus-forecasts/ilmenite-price-forecasts/

[JollyRoger7]

Sorry, folks. I clean blanked out the reference to 150,000 tonnes per year shown in line 2 of the Press Release.  But, if you apply the sales value per tonne for Ilmenite then the project does appear to look faintly similar  to  low grade Iron Ore JR7