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Bullboard - Stock Discussion Forum Largo Inc T.LGO

Alternate Symbol(s):  LGO

Largo Inc. is a Canada-based producer and supplier of vanadium products. The Company’s segments include sales & trading, mine properties, corporate, exploration and evaluation properties (E&E properties), Largo Clean Energy and Largo Physical Vanadium. Its VPURE and VPURE+ products, which are sourced from one of the vanadium deposits at the Company's Maracas Menchen Mine in Brazil. The Company... see more

TSX:LGO - Post Discussion

Largo Inc > My estimation of the production loss due to heavy rainfall
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Post by kha341 on Jan 21, 2022 7:44am

My estimation of the production loss due to heavy rainfall

In my estimation they operated at about 50% of the expected capacity during the heavy rainfall of Nov - Dec: 

2021 Production Guidance Low End = 11,400 

Q1+Q2+Q3 Actual Production = 8,316 tonnes

Q4 Production Expectation (Low End) = 3,084 representing an expected average of 1,028 tonnes per month or 33.5 tonnes per day. 

Q4-21 Actual Production = 2,003 tonnes or 1,081 tonnes (35%) lower than expectation. So we can say that the Nov and Dec heavy rainfall caused a production loss of 1,081 tonnes or 17.4 tonnes per day on average in these 2 months as compared to the daily expectation of 33.5 tonnes.  


Comment by kha341 on Jan 21, 2022 3:40pm
If we assumed that the average price of V2O5 = US$9.00 / lb then a shortage of 1,081 tonnes (or 2,283,000 lbs) would = (9 x 2,283,000) = US$20.5M. And we have more than enough in our inventory to cover it.
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