Largo Inc T.LGO

RBC's Wong

[zutfie]

 

Globe says RBC's Wong lauds Largo's "strategic shift"

 

2021-08-17 09:10 ET - In the News

 

The Globe and Mail reports in its Tuesday, Aug. 17, edition that RBC Capital Markets analyst Andrew Wong is confident Largo Resources is making the right clean energy moves. The Globe's David Leeder writes that Mr. Wong continues to rate Largo "outperform." Mr. Wong lowered his share target by a loonie to $25. Analysts on average target the shares at $26.20. Mr. Wong says in a note: "Although Largo's strategic shift toward the clean energy battery business will take time and may come with growing pains, we continue to see significant value in the transition, which will be supported by improved operations and cash flows from the traditional mining business. Additionally, tight vanadium markets are supporting strong prices that may persist through next year, which Largo should benefit from due to the recently completed expansion." The Globe reported on Aug. 17, 2019, that Mr. Wong rated Largo "outperform" when it was worth $10.56 (adjusted for a 10-to-one consolidation). The Globe reported on Jan. 15 that Credit Suisse raised Largo to "neutral" from "underperform." It was then worth $10.14. The Globe reported on July 1 that Mr. Wong reiterated his "outperform" call when the shares could be had for $19.30.

[kha341]

So AW expects LGO to be at C$25 in 12-month time. In Aug 2022 to be exact.  In the next couple of years at least Largo will have to live on its traditional mining operations, heavily dependent on the volatility of Vanadium. Until now Largo’s leadership has failed to provide any additional revenue stream as a safety net. They are unable to walk the talk. I don’t expect the sp to go anywhere

[MetalsMan]

It really is worst case scenario.  They have no sellable iron ore to offset costs, no trust from investors, price of vanadium is dropping, an interim CEO, additional costs from a battery division that hopefully can produce the contracted battery but either way has huge costs and no margin for years What's on the horizon to slow the spiral down?