Largo Inc T.LGO

PURCHASING VANADIUM

[Bullsprig57]

Are we selling 100% of our production and having to purchase vanadium from the outside to meet contracts?  I didn't understand that part of the call that discussed we making less margin on purchased product.

[st_esteban]

Again, no transparency.  Not having specific numbers to associate to the amount of V that was bought and then sold in the market, shareholders are left to guess at what was done in this quarter and will have to guess for next one. How profitable is Largo based on its products? How much is Largo selling to the premium market? How much will Largo sell next quarter from its own products? Why

[kha341]

I agree. It’s counter to my common-sense expectation.I know that Maracas produces the highest grade vanadium in the world but I also notice the following: 1) We have to sell our high grade V2O5 products not only as standard grade V2O5 but often at a discount to the standard spot prices.  2) Our product mix comprises V2O5 + High Purity + FeV and yet the sales prices per pound of our “V2O5

[Theturk12]

Could it be that Largo is setting aside it's high grade v2o5 or at least a good portion of it, and replacing the set aside amount with bought in V hence the lower price obtained and the comment by EC regarding the lower margin from bought in V. They need a lot of V for the battery business and only the highest grade will do. Substitute market bought V to replace what they are holding back

[kha341]

According to Cleave, selling “our produced vanadium” is what they prefer to do. Q2-23 CC. Cleave: “But I think we will see improvements in earnings in Q3 and Q4 because we didn't sell quite as much of our produced vanadium in this quarter as we would have liked. We sold a fair amount of purchased vanadium”

[JollyRoger7]

Putting aside High Grade V2O5 for the commisioning and back-up stock holding of V2O3 will account for some.  JR7

[island9999]

  Agree,....if Largo has contracts to fill every month and it requires standard grade for steel,then purchase from another (Glencore)?,..process your own high grade for specialty sales,...LCE stock for future battery sales,.....BTW future Ilmenite plant for production in 2023 150,000 tonnes per year, Ilmenite 47-49%Ti02 concentrate delivered in China, ranges $280-300 US per tonne Fastmarket