Largo Inc T.LGO

Q4-21 Earnings

[kha341]

Quite disappointing. The huge 25% increase in costs was really unexpected.

Q3 Revenue = US$53.9M

Q4 Revenue = US$50.3M

A decrease of US$3.9M or down 7%

Q3 Expenses = US$40.4M

Q4 Expenses = US$50.7M

An increase of US$10.3M or up 25%

Q3 costs = 75% of Q3 Revenue

Q4 costs = 94% of Q4 Revenue

Had we maintained the same level of costs (75% of revenue) as in Q3 then our Q4 Income before Tax would = US$13.5M and our Q4 Income after Tax would = US$14.6M or ~US$0.23 per share or ~C$29 as compared to the analyst consensus of C$0.19.

[Bullsprig57]

I would have expected avg price as well as volume to be significantly higher than Q3 when flooding was the excuse. 

[kha341]

Correction: Should read Q4 costs = 101% of Q4 Revenue Q4-21 Results Quite disappointing. The huge 25% increase in costs was really unexpected. Q3 Revenue = US$53.9M Q4 Revenue = US$50.3M A decrease of US$3.9M or down 7% Q3 Expenses = US$40.4M Q4 Expenses = US$50.7M An increase of US$10.3M or up 25% Q3 costs = 75% of Q3 Revenue Q4 costs = 101% of Q4 Revenue Had we

[kha341]

From the MD&A: For Q4 2021, the Company recorded net income of $789, compared with net income of $6,881 for Q4 2020. This movement was primarily attributable to a 19% increase in operating costs, a 72% increase in professional, consulting and management fees, a 124% increase in other general and administrative expenses, a 156% increase in share-based payments and a 100% increase in technology

[NewAgeMetal]

Can we explore this a little bit? Are these the new LCE offices is Eastern USA?

[NewAgeMetal]

Sorry that was supposed to be attached to Kha paragraph on all the admin/tech/professional services costs

[kha341]

There is a matching principle which requires that revenues and any related expenses be recognized together in the same reporting period.  Q4 Total Revenue = US$50.326M comprising US$24.520M from the sales of V2O5 and US$25.806M from FeV.  There was no revenue booked for the sales of VRFB in Q4 so I don’t know why they had to record an expense amount of US$3.105M (representing 6% of