Largo Inc T.LGO

Iron oresales vs Ti pigments

[st_esteban]

If I recall correctly in one interview Paulomentioned that the current stockpile had a13% content of Ti.  He also said that the revenue from extracing Ti and creating pigmentswill be equivalent to the revenue that Largo generates from V.

Does anyone has additionalinformation about the above?
Could it be that Largo sees a better approach to hold the iron oresales in order to make better profits on Ti?

I have not done any math tj figure the economics of oneapproachvsthe other.

[kha341]

Please help me to understand your post. Why do the sales of iron ore have anything to do with Ti pigmentation? Why would it be better for Largo to hold the iron ore sales in order to make better profits on Ti? Are you concerned that Largo is not capable of doing both projects at the same time? Largo has a huge stockpile of iron ore sitting around gathering dust therefore it would cost the company

[kha341]

FYI From Q2 - 18 CC Piyush Sood, Morgan Stanley, Research Division - Research Associate [7] -------------------------------------------------------------------------------- Any plans of, say, monetizing your tailings or extracting some more value from them? -------------------------------------------------------------------------------- Mark Allan Smith, Largo Resources Ltd. - CEO

[kha341]

st_esterban I posted the above yesterday. It's from the Q2-18 CC and is quite informative.

[jcw604]

Kha, thank you for pointing that to me. Following you highlight portion is: but we could start selling some ilmenite by the end of this year, early part of next year. Both titanium or ilmenite are from the tailing, and it is like mining without the cost of exploration. Wonderful!

[st_esteban]

@kha  my question relates asmuch to my perception of management as to the value of the tailing stockpiles. From the management point of view  I think that they are very poor stock promoters.  They have a lot going on for Largo but are not able to create the excitement on the market.  Management seems to be going in the right direction in terms of the VRBF batteries and trying

[kha341]

1) Largo's iron ore product / stockpile is relatively low grade with elevated titanium content subject to penalties. So Largo can only sell it iron ore at a discount to the benchmark 62% Fe ( currently at ~US$190/MT as per Roskill) 2) Ti is not extracted from the iron ore stockpile. They come from 2 different tailings. Ilmenite/Ti is extracted from Non-Magnetic Tailings and Iron ore from

[st_esteban]

@ Kha - Thank you for the clarification.  If we are talking about two different tailings and the one that contains iron ore is basically iron ore then I agree 100% that we should sell the whole thing ASAP to take advantage of the high price. This is the link to the video where Paulo mentions the content of Ti -check around 9:18 into it [it is about 1 year old] https://www

[st_esteban]

From that interview - Keep in mind that this isfrom March 2020 before COVID... ...We have one project which is great, which is Titanium.  We have 13% of TiO2 in our tailings, which means we are going to reduce the environmental impact.  We are going to take this material from the tailings, from the damns and are going to recover the Ilmenite and produce Ti pigment.  Doing that we

[kha341]

St_estefan, Your link doesn’t work. Anyway, with Paulo’s communication skills (rather the lack of it) it is easy to misunderstand what he really means to say. By the way he did say: "We have 13% of TiO2 in our tailings" and not in the iron ore stockpile, did he not? Where does Largo get its Vanadium from? From processing the vast deposit of Vanadium-rich titaniferous

[st_esteban]

Thanks again Kha. Hereis a lik that should work https://www.youtube.com/watch?v=48FqpJF5tlY

[kha341]

Largo management always forgets to mention that one of the key factors for the costs to be so low is the weakening of the Brazilian Reals (BRL). Our revenue is in US$ while our costs to operate the Maracas mine are in BRL  Back during the ramp-up phase our long term economic assessments were based on US$1 = 2 BRL. In the last 2 years the BRL has fluctuated between  1US$ = +6 BRL and 1US$

[jcw604]

So by year end, or beginning next year, we will have double the revenue?? I will be satified with 50% growth, but I don't mind the other 50%

[jcw604]

The Titanium thing was suspended, but they moved forward with ilmenite, which is a black iron-titanium oxide with a chemical composition of FeTiO3. Ilmenite is the primary ore of titanium, a metal needed to make a variety of high-performance alloys. Most of the ilmenite mined worldwide is used to manufacture titanium dioxide, TiO2, an important pigment, whiting, and polishing abrasive. I think