Largo Inc T.LGO

Some perspective from a first time poster

[PvtInv01]

There is a significant amount of quality content on this board but there is also a healthy amount of misplaced energy.  In an effort to help focus investors on the real drivers of value here I'd like to remind everyone of a few facts...
- LGO's enterprise value is roughly $600MM
- LGO should generate over $70MM in EBITDA this year and over $100MM in 2022.
- The recent technical report increases the mine life 12 years and results in a $2B after tax NPV (compare that to the market cap- it suggests the stock is trading at well below half the level it should be)
- The technical report does not contemplate value associated with the energy storage side of the business (it was not in the scope of the report).  The company has indicated that the value of selling in the energy storage market greatly exceeds the value of selling to steel producers.
- Ian Robertson co-founded Algonguin Power & Utilities Corp and grew it to over $10B in assets.  He should be able to handle the establishment and growth of Largo Clean Energy just fine.
- Construction of a TiO2 chemical processing plant should be applauded by every investor - the IRR on this project is well over 50% (see the technical report- 2028 reflects over $400MM in EBITDA).
- Analysts targets are $21-24 (CAD).  At the moment, none of the analysts have updated their models to incorporate cash flows from titanium (which will add significant value).

All of these factors suggest this stock is significantly undervalued.

What investors should not be concerning themselves with...
- Daily trading (who cares)
- The "cost" of the battery side of the business (it just isn't that significant)
- When the next battery deal will be announced (the lead time for large deals is extremely long)
- When sales from a battery deal will be recognized (they'll be doing just fine selling to steel producers and others until LCE has its day)
- Lee Cooperman (he is just a cranky old dude)

[kha341]

Very informative first post. Thank you and welcome to the Largo board. I’m sure you are a savvy investor but you don’t need to be a sharp investor to know that we should not care about the daily fluctuations especially when most of us here are “long”. Stock prices of any moment  should reflect the supply and demand in the market of that specific moment.  And in the long term the

[ceetong]

A good example of what happens to investors who take projections, estimates, so-called "analysis" at face value: LGO stock closed C$13.29 on ethe day this post was made. It's C$6.87 now, down -48% from where he said it was "significantly undervalued". --- Bottom line: Expectations expressed here are constantly way too. The company continuously misses its own forecasts