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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 > 17 January,2022 press releas
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Post by Drhoho on Mar 21, 2022 8:59am

17 January,2022 press releas

Reviewing in the above press release giving 4Q and full year 2021 production numbers, the stated  2022 production sales and guidance total was for ~ $US 37 million, the stated 2022 capital expenditure guidance total was for ~$US 61 million, for a total of  the two of ~$US 98 million. " The company expects to fund these capital expenditure projects through internal cash flows." And at the same time, per CFO Cleave, increase free cash by the end of 2022 of ~$US 100 million, become debt free, with  the BOD considering dividend, share buyback, or other options with the free cash on hand and projected future increases? This is going to take a lot of $US coming in 2022 and beyond. We shall have to wait and see. Difficult for me to believe that these projections are not backed up by internal confirmed information.
Comment by kha341 on Mar 21, 2022 9:28am
Considering their habit of over promising and under delivering, don’t hold your breath just yet.
Comment by Drhoho on Mar 21, 2022 10:00am
Good admonition, Kha, not to be holding my breath. I can help myself, breathing heavily, looking for a sigh of relief.
Comment by kha341 on Mar 21, 2022 10:30am
The production NRs are used by the public to update their EPS estimates. The Q4-21 production NR was released on Jan 17 2022 and reading it nobody would expect a Loss for the quarter.  The Nov-Dec-21 flooding had little or no apparent impact on our Q4-21 sales. The Q4 sales (2,899T) were even higher than the previous Q’s (2,685T) (btw, the Q4 sales will likely be better than the Q1-22 ...more  
Comment by kha341 on Mar 21, 2022 12:51pm
Anti-transparency corporate culture = source for public mistrust of management. I, for one, don’t take what this management says at its face value. I don’t trust the blah blah, just show me the results. 
Comment by ceetong on Mar 21, 2022 1:13pm
Without doubt the flooding did have a material impact on Q4 results. It lowered recoveries (-7,7 percentage points vs. Q3) and production (2003t vs. 3260t in Q3), both factors massively increasing cost per unit produced. Add the cost for dewatering the pit and also the cost for the water diversion system surrounding the pit and that's how you end up with a small loss instead of a nice profit.
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