Largo Inc T.LGO

The failed iron-ore deal with China

[Clipper2]

It was extremely fortunate for the Chinese steel company (which had a deal in place to purchase iron-ore from Largo) to find sodium in the iron-ore, as it enabled them to purchase the material for $7 per tonne. (When the price of iron-ore at the time was over $200.

 

After making the deal to purchase the iron-ore from Largo, China reported that they were ordering the steel companies to cut-back on steel production, which would obvously send the price of iron-ore tumbling. (which it did).

 

It's water under the bridge now, but it makes one wonder..

 

I'm obviously not a chemist, but surely there must be a way for the sodium to be removed from the iron-ore. If not then Largo is left with a stockpile of a few million tonnes of shi**tty material.

Give the link a little time to open.

https://markets.businessinsider.com/commodities/iron-ore-price



 

[kha341]

We sold 14,000 T of iron ore to the Chinese @ $7 per tonne? US$7 x 14,000 = US$98,000 in total sales revenue? According to the Q2 Financial Reports the margin on Iron ore sales = US$84,000 thus they were making $6 / tonne in profit margin. Pity. The lack of transparency prevents us to know the sales price and the costs of good sold related to iron ore. They only tell us the "margin". So

[Clipper2]

Yes, and once the material had been delivered there was obviously no way to return it. The steel company had Largo by the "goolies" (British English, taboo, slang). It's the Glencore rip off all over again. The one-sided 6 year Glencore offtake agreement Largo enriched Glencore by between !50m and 200m. Sure, their financing helped Largo in the early years but, Largo paid

[Theturk12]

Just compared Largo to Bushveld from Friday closing prices to todays closing prices. Bushveld lost 2.70% whereas Largo lost 10%. I dare not look at the comparison from the begin of last week till close of today. Bushveld is holding it own and Largo is in free fall. A note from our president to the shareholders would be comforting saying something like all is well with the company and things are

[Clipper2]

Hi Theturk As I previously mentioned I own both Largo and Bushveld. No need for alarm. Largo has been holding up well under the circumstances.  Yes, the sp has recently been dropping but the market  recently took a beating. A few months ago posters on the Bushveld bb pointed out (the opposite of your observation) that while their sp was taking a beating the Largo sp was steadily

[SKiamforsure]

Thanks Clipper  My Question is ? When is it the shareowners turn to make a return Just wondering , Wondering , wondering Hope all is well SK